Leaderboard

I encourage questions in the off-season, because it usually involves selling something. I would rather inform them than to deal with a surprise at filing time. I will not charge unless research is necessary, and I don't go through the misery of collecting until the next tax season. I put a reminder in their file so I won't forget. Almost all those calls involve a taxpayer selling something. And it's amazing how many people believe if they replace the property with more expensive property, they are off the hook. That treatment has been gone for decades.

I would like to eliminate partnerships just because of some of the potential issues but I don't feel like I can drop existing clients who will get major sticker shock going to someone else for a 1065. I feel like I have to do 1041's because of the demographics of my clientele (I inherited about half my clients from a 90 year old preparer) and usually the estate returns are only for one year. I'm okay with complexity if the client didn't deliberately seek it out (some folks just love to complicate their lives). My biggest beef is with brokers who have clients invest (often trivial amounts) in limited partnerships with no regard to the tax preparation consequences. I know H&R Block loves a K-1 with an amount on nearly every line (generating about $1,000 worth of forms) but I don't.

Yes, in a way. But I'm an old man now. I like easy and boring. And I like taking more time off.

Does anyone have to provide MFA to sign into prior years ATX? I don't think so. I just got a new computer with Win 11. Hopefully I can figure out the Win authenticator and use the built in antivirus. Then hopefully I can download Medlin's AR program too. It doesn't seem to recognize that I have an internet connection (!). I am really over all these restrictions. I want to quit.

I also charge flat fees for prep and base them on the circumstances. No complaints so far. I do not charge for calls and questions throughout the year. I tell them that I am available for them all year and not just during tax season. I would rather get a heads up than a surprise later. If paperwork is involved, there is a small fee to cover costs.

They have an FAQ page here https://www.bls.gov/respondents/ars/faqs.htm found via search engine. Looks legit, I guess, but sheesh they want us to be suspicious of everything, then also send out-of-the-blue emails wanting people to click on links.

I just got out of an NAEA Update webinar with A.J. Reynolds where he touched on RMD for IRA Beneficiaries. Long answer is... https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries Notice 2024-35 extends the temporary relief from RMDs for certain inherited account holders. Short answer: ROTH owners always deemed to die before the RBD, so no RMDs required in year 1-9 for beneficiary; drain account by end of year 10 (planning might suggest a lump sum is not the most tax advantaged way to distribute). Responsibility of beneficiary to take year of death RMD if not yet taken by decedent. [Note: this paragraph based upon beneficiary being a non-spouse person, and not an estate.]

I just bump up my tax prep fee when I have clients that do that. If their questions would require a tax projection for the coming year , I give them a quote for in advance.

Just received a large paper packet in the mail from USDA re Tenure, Ownership, and Transition of Agricultural Land for some farmland I inherited in IL. Very detailed and intrusive. But I inherited the land which for a while was owned together with my cousins who live in IL and farmed the land, so I knew little except to receive my K-1. It was divided at some point, but I continue to rely on the counsel of my cousins, plus we're all old now and use sharecroppers so I get a check as well as corn and soybeans which I sell where they suggest. This "mandatory" 12-page packet with at least 3 pages of instructions will be a time suck. Worse than the short-form biz census forms, maybe about as bad as the long-form biz census which I worked on for a client a couple years ago. I wish the government would concentrate on raising income and spending less instead of making us citizens give intrusive details about our lives.

No, can't claim the EIC now. https://www.irs.gov/businesses/small-businesses-self-employed/filing-past-due-tax-returns From the above linked IRS page:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary Tom is correct , the RMD rules for non spousal beneficiaries depend on whether they are an "eligible designated beneficiary or not.

I agree with others that you first have to determine whether the trips are primarily for business or primarily personal. If primarily personal, no travel expense is deductible. If primarily business, then you can apportion as necessary (if for example, she extended the stay for personal reasons, she could not deduct those nights). One issue is that your client has not deducted anything for travel in the past. That implies that she considered the trips primarily personal. Does switching from staying with a friend to renting an apartment change the nature of the trips? If the trips are primarily business, then I believe you should deduct all allowable expenses, including mileage or air fare - you should not pick and choose which expenses to deduct.

That is incorrect. Exactly the opposite. I don't have the sites right now, but you must take RMDs for an inherited IRA unless you are a spouse or a special exception. Tom Longview, TX

I have easily accessed prior year programs. I don't think the technology was programmed into them. I was a bit concerned as I had not yet printed out the few organizer details for some clients - py rental info or Sch C data - which I like to include with the engagement letters. I think it helps them to see what they might need for current year.

My assistant has her own phone login for her computer. We work exactly the same as you. She has a second authenticator on HER phone for my computer in case something would happen to me and nobody is able to access the finished returns. Have her set up her own authenticator on her computer with HER phone..We spent half a day figuring this out, but it worked and we are both much relieved. In my case, she has 2 separate authenticators on her phone because the phone is tied to the computer.

I had my post hospital checkup today and Doc thinks it is a very good idea if I wear a good mask for in person, sit down clients. I think so too. As Sara said, I would find it boring to only do personal returns. On the other hand, we haven't done Estates, Trusts or Corps for several years. I relish Partnerships (small) because I have been doing one for 50 years. My husband's business is a Partnership. We aren't taking any new business returns either, though I did bow to accept a new girl with a daycare because of her references. This possibly could be my last year, depending on how my health continues to improve. I have a buyer on hold and an assistant anxious to take over. I hate and resent the way that they are trying to regulate us while all the knock off preparers are out there doing whatever they want. We have several clients with E and other C businesses and one Joint Venture. Therein lies the revenue and my spending money for one more year, at least.

Isn't that boring?

Our local TV news is out of DC, and last night the rolling list of cancellations showed that federal government offices would be closed today. Remote work was in place for those who do it. The snow didn't stop until very late in the PM so I guess they still had to clear roads and walks. Try again tomorrow. Remember that Thursday Jan 9 is a National Day of Mourning in honor of President Carter so federal offices will again be closed and no mail.

Snow storm?

Had a few call to see when we could start filing. But when covid hit we stopped sit down appointments. Never looked back. Only lost 2 clients due to no sit down appointment. So much more efficient. Sit down appointment time with clients was probably 20% working on their taxes and 80% listening to how their year was. Calling them with questions is 100% more effective. Not to mention that since 2020 I have not been sick once during tax season !!! So many would come in sick that it seemed I was always snotting around and feeling puny. Actually would love to lose about 20% more. Been seriously thinking about posting a sign to that effect and attaching letters to finished returns. First will be getting rid of partnership and trusts. Just stick to personal. And get rid of the "file an extension" every years clients and the PITA ones. Then raise prices 20% !!!!

I had a client who, after being told they owed a significant amount, said he'd given $12,000 to his place of worship. I said I needed to see the receipts--he was half-right, he had $6,000 in monthly contributions and a year-end statement for $6,000.

I have also done them, but never received an email only paper requests with website and log in information to submit online.

I fill out a number of different BLS Surveys for my business clients. Some of them are simple and some of them are a very long PITA!

The custodian is only there to make sure you don't take action which is restricted by IRS rules. They aren't there to aid the investor. I'm pretty sure the IRS ruled you don't HAVE to take an amount every year of the 10 year period on traditional or Roth IRAs. It's just usually a good idea on Traditional IRAs.

A.J. is great, always enjoy his presentations. IRA's are anything but simple--unfortunately unless the custodian is looking out for the client, the account holder can really screw up.

When it's high call volume, the recording will say High Call lloume, go to irs.gov, bla bla bla.

The firms I worked for kept time in 6 min 10ths of an hour because some things don't take 15 minutes, and when that quarter hr was tried the time charged to clients was more than actual. I still use 6 min 10ths of an hour, and so do a few others I know of.

We don't usually charge for answering questions unless the response takes more than a half hour. It's difficult to set a hard and fast rule. One client has a $2k return and I don't charge him for responses that take time. Other clients are needy and contact me several times throughout the year. I bump up their tax prep fees. Some attorneys are now charging their time in 5-minute increments. (And 6 minutes = 10 minutes billing.) How could anyone keep such exact track of their time and still get any work done? I saw an estate bill once where the attorney charged for 10 minutes opening mail. It probably took him two minutes to track and record that blip of time in his day.

I am sure the DOGE will get this resolved.

I know what you mean but they take more time and I want easy these days. So I'm not taking new business clients and have thinned them out the past few years. Only taking new personal returns if they are very basic.

We dont have too many partnerships or trusts. So thats not a huge financial impact. Mostly farmers (F or 4835) and schedule C and E clients. Will keep those. But after 45 years, I need to slow down.

I only charge extra when the client's question requires research and a written response.

I do the opposite. I keep the business clients and try to rid of the personal tax returns. Business clients are way more profitable.

I charge an hourly rate but include that time, more or less, when questions are during the season as they normally relate to the returns. During the year, it depends. For short calls or rather simple things, no charge. I would rather folks keep in touch and ask 'permission' rather than beg 'forgiveness' which can be costly.

There has been a quite a few news stories the last several years about the shortage of accounting graduates etc. I know here in Oregon where all preparers are required to licensed that the number licensed preparers has dropped about 11 % in the last decade. It will get worse because baby boomers make up the largest generation of currently practicing CPAs, EAs and etc.

I was understanding that a second login and authenticator thingy was possible and probably advisable. I was doing to set up my husband's phone as a back up in case that Mack truck gets me. Does your secretary have a smart phone to do this or can you set her/him up with the online version?

After the last tax season wrapped up, I received calls from 3 local preparers asking if I was interested in purchasing their book of business. Others have raised their minimum fee to over $500 for a personal return. I have been getting many people in panic mode looking for a new preparer. It looks like it's time to raise my minimum fees too!

Marilyn, I think it's the former (practices not taking new clients). When I went out on my own, there were four of us (enrolled agents) on the same floor of an office building. I'm the last one standing (and not for long). I'm afraid the personal service we offer is disappearing.

Margaret, my client gets a W2 from a Texas Company. He is actually an engineer. However, they withhold state taxes for Colorado, Louisiana or wherever they send him. Mostly now he works in Texas. When I first met him, he was so far in the hole that you couldn't see the bottom. I just told him how proud I am of what he has done with his life. However, filing two or three NR forms as well as Wisconsin has just become too much of a burden. Sometimes we have to step back and think of what is best for the client. I do think that you are on the right track with your client. Being self-employed is an entirely different ballgame.

I had a client change his Domecile to Texas instead of Wisconsin because he is there much more than he is here. Also, Texas does not have Income Tax and he travels to different states for construction. Yet, his base right now is Texas, but he has rentals in Wisconsin and just recently aquired some in Texas. I also advised him to find a tax preparer in Texas as it is getting too difficult to track his activities. Nice guy and I hate to lose him but I believe that someone closer could do a better job for him. Will see what he decides.

This gives me a headache. I have 2 computers with ATX. The front computer my secretary uses and inputs the basic information and does a back up. I take that and finish it on my pc. I've been doing this forever since the networking didn't really work well for me. Anyway - now she needs my phone to log on. Nuts!