Leaderboard

Every. Single. Return has had issues. And I don't do very many basic w2 clients, so I expect issues. But really a lot more issues this year. I think we should just set up a zoom call with everyone and complain for a good solid hour - we're the only ones that understand our misery.

Well since I have already raised my fees and cut back over the years, my tax season has gone fairly well

Yes, a horrible season. Getting the information from people seems to get more difficult each year, and no one likes the price increases when all I've done is raise the price to just stay even with my increased costs. Increased aggravation to make less than before? No thanks.

I actually sold an old Compaq portable pc to a museum in California about 10 years ago. Was the size of a small suit case and weighed about 30lbs !! Sold it and some old Voodoo Video Cards to them. You know your old when your crap you bought new belongs in a museum !!

Tom, I just finished and efiled one yesterday. I went to 4684 Input. For my client I selected Income producing (her entire retirement plus all her investments), Type was Cash, her address, the original date of retirement and date the theft began. Long term and the original cost on lines 20, 23 (FMV) and 27a ($729,462). It flowed though to Sch. A and to page 1 of 1040 as itemized deductions. It shows on 4684 page 2 section b part I column A and flows to section !!. It was efiled and accepted. We shall see what next steps happen.

I do not remember such a rough season as this year. Well maybe the stimulus seasons. But so many people this year forgetting documents !! Interest statements, investment statements, social security statements. And you call and no one ever answers the phone. You leave a message and they call back and ask what you wanted. Did you check your voice mail ??? No, they reply. So frustrating. Then they forget you need stuff and call and ask why its taking so long to prepare their taxes !!! Idiot... your suppose to get me documents !! I dont call then Idiots, but I sure a heck want to. So many other frustrating situations. Too many to list !! But something has to change. We need to cut way back and weed out problem clients. Been saying this for many years, but it has to happen. Time to change our pricing and business model. I think its time to loose all non 1040 clients and a few schedule C clients. And pain in the arse 1040 ones. We could raise our prices 30% and lose 30% in the process and make life so much easier. And at a 30% price hike, we would still be under the national tax prep average. We charge some clients the same we did 10 years ago !! Some even beyond 10 years !! But it has to change. Getting old and just honestly do not need the aggravation. Anyone else, have a crazy year ???

There are lovely people I serve too though. I delivered a return yesterday to a client/friend of almost 40 years. She's 95 now in assisted living. Return isn't *that* complicated but has half a dozen 1099Rs, one consol broker 1099 package with only 40 page or so, the bigger main consol broker 1099 package that was only 60 pages, and a PTP. We had a really nice visit and did some reminiscing. People like her remind me why I still do this work.

It's really crazy. I think we need to have a giant round table session (at Rita's burial ground ;)), or maybe a giant zoom call) just to discuss practice management. I've been working 90 to 100 hours a week since the first week of February, and I literally am getting too old for this. I feel like I can hardly push myself through this final week. I have good staff, but it's still just too much. I think others work faster than I do, and I need to learn efficiency steps. Last year I did 730 returns including extensions. This year, I'm at 525 so far and working as fast as I can. Client documents are delayed, and everyone just needs to talk to me for '5 minutes'. I feel like such a loser when I put someone on extension whose information was turned in during March. I set my deadline at March 7th for a guarantee of no extension, and I have passed that 'check-in' date, but people are still really good at making me feel bad, anyway. Thanks for listening. Yes, I like cheese with my whine. I do think some sort of 'trading trade secrets' meeting would be amazing. I'd host you all in Kansas ... you probably don't want to come in August, though ;).

I had a huge book with a disk called DOS Power Tools and I was DOS wiz. I hated having to start over with windows, and waited until Win95 to make the move.

I still have my "DOS for Dummies" book and assorted other junk down in the basement.

I think it does. I used to know how when we needed to scan and attach Sch B of the 1116 a couple years ago. I have not done it in a while. As I was eating dinner, I came up with a plan, I am going to reference the CCM in line 19 and SEE ATTACHMENT. Then I am going to complete a blank statement and then attach as a pdf. I am not concerned about the legal challenge to the deduction, my client fits the #2 scenario in the CCM to a T. I don't care if they audit, we are on firm ground. But I don't want to invite an audit because the facts are not presented in the originally filed return. And I don't know for sure how to make sure that the facts get into the IRS system. That is what has my knickers in a bunch. Tom Longview, TX

I would be in the $400-500 range too, depending on how much work I had to do on the rental and basis of stock. If the basis is printed on the broker 1099, that is less work than if the client brings in basis from an inheritance or older purchases where they've changed investment firms, etc. I had one that I started to list in the complaint topic and changed my mind. The guy did not return to me this year because I charged him $800 last year. He'd been a client for more than 10 years and I cut him big breaks on the calls and projections, but not on the returns themselves, and I still undercharged him. He also owed about $60K on the federal alone because he has huge bonuses and never calls, and does stupid things like using retirement distribs to purch the beach property, and underwithholds or has no withholding on that income. Tax prep and other work included were for: high income earner W-2, so also had Medicare add-on tax, but not even $1 of interest or dividends so no NIIT, Sch A with SALT and mortgage limitations, sold 2nd residence which also had extended calls to fill out the form to avoid the state tax withholding at settlement, purchased another beach house, this one as rental but with lots of personal use, and didn't agree with explanation of expense limitations and argued that, 3 retirement distributions with partial rollovers and minimum withholding of 20% in the 39% bracket. These partially used for new beach house/rental, a complicated projection with 3 scenarios for a possible early retirement. Sent me a 200+ page booklet of explanations of these deals that he then demanded answers for within a day (the week I had the flu too!), multi-state as DE resident and working in PA, out of state credit and a daughter's return that was PY DE, PY NJ, and worked in Phila while living in each of those states, and then worked in NY city once fully moved to NJ. So with all of that, it was parent's Fed, DE, nonres PA, 2 complicated projections, and daughter's Fed, part-year DE, part-year NJ, nonres PA, and nonres NY and NYC returns. Nine returns in total. His other adult daughter left too. Charged her ~ $500. Similar BS with multi-state: She works in PA, husband in DE, they sold home in DE and moved to PA during year, has 2 children for the CTC and dep care credits with the documentation and due diligence, unemployment, std deduction for federal but each itemizing for DE on a separate basis, plus they live in a PA jurisdiction that has local earned income tax. So that one was joint Fed, 2 separate PA, 2 separate DE, 2 separate locals and figuring the out of state credits on those was a PITA. Not a word from either of them to know why they were unhappy. Those are the type I typically never take back because they were unhappy enough to leave and not give any courtesy to me after more than 10 years as clients and lots of free advice. I hope they are happy with their new preparer and higher fees, and if they contact me in future I will joyfully and firmly say "NO THANKS."

Had a client today who "lost" $1.5m. Not that he lost $1.5 million in the stock market drop, he couldn't remember where it was invested to get me a 1099. When I asked if he still had healthcare through the marketplace he responded with a "you need that form every year?". Had a lady call a few weeks ago and said she was ready to get her taxes done and I could pick up the docs on the way home. I get there, we meet in the lobby of her building and I ask "do you have some forms for me?" Her answer was No and thought I could figure something out. Son of a client has learned from his secretary that his father's nursing home expenses were deductible, he declares we weren't claiming those and he wanted me to file amended returns as soon as possible for the last several years and I'd be doing it for free as I had failed to do my job. His sister (on the email chain) responds "We've been doing that for the last 10 years but thanks for getting involved now." That was a fun day. Had a couple three weeks ago who had a household income of $350k and owed $3,700 on their federal and the husband didn't know how they were going to pay it. He wanted to know about how to set up a payment plan and the wife was steaming mad. When I mentioned they'd be getting about $2,000 back from the state and would almost certainly have the refund before April 15th, he still wasn't 100% sure they'd have the funds and wanted information on making payments.

Yes, agree with BTS. Long and frustrating season. No call backs. Missing docs, etc. To top it off, it's snowing here in Western NY.

What? No sex, or inappropriate language. Ain't watchin'.

Note that this type of "theft" is not subject to the 10% of AGI+$100 reduction for casualty losses and should flow to line 16 of Schedule A (not line 15).

Which may be an "easy to miss" item included with the closing docs. For mine, it was a "certificate of withholding". See a recent post called (IIRC) "Two states"

You will need to file the WV return and report the sale of thr property and show the amount of tax withheld as a payment. I haven't looked at WV instructions but it is customary to include a copy of the form showing the tax withheld. Then, MD will also tax the sale of property because your client is a MD resident. MD allows credit for taxes paid to WV on everything except wages, just as Lion said. Use form 502CR.

Fixed assets: under disposition, put converted to personal use and that will stop the depreciation. You can leave them in fixed assets, handy if they're ever sold.

Someone also recommended the beekeeper.

Yes to both weird and amazing.

Is there any income to be distributed? Was the house sold at a loss, like it usually is? The charities get their specific bequests and the bene's split the rest 1/3 each, but so 33.33333 is correct, but make one 33.33334 so it adds up to 100.

I'm out of gas. It seems to be more hectic this year but I don't know why. Maybe some are getting in here later. I'm not sure. I told myself I wasn't taking new clients. Then there was the son of a client, the daughter of a client, the parents of a client, fiancee of a client. Whoa, I gotta learn to say no.

About $500 if MFJ. Probably $800 for MFS.

schirallicpa I am in Rochester and yes the roads can be brutal as well as the property taxes, the annual heart break of the Bills and the long winters but I guess better then tornados, hurricanes and wild fires.

An Unhappy Hour with a beverage of choice in hand. Find Brenda C, CPA @bsuecannon on Tax Twitter/X. She has a scheduling scheme to spread out her work AND have the clients buy in so few "just checking when my return will be ready" calls. I just didn't have the time to put it in place this year, but definitely will before next season. She recorded her Zoom training sessions. Brilliant woman who put her years of experience to work for her and is sharing her methods. I've been raising prices 10% each year since back in Covid when I read that the average CPA price increase was 35% that year. (Used to raise no more than 5%.) Although, a couple of the biggest complainers had me back off if I put them on extension to stop the complaining. I found a fairly local preparer to recommend when clients complain; he has 5 offices and can take on new clients. I haven't seen a check yet, but I'm to get paid. I've been encouraging attrition with my price increases and insistence on extensions to spread my work out all year. Every return is more complex. Energy credits taking a LOT of research. Sell home and move to a new state, so have to allocate wages, etc., to PY returns. College kids working in 2-3 states and maybe an IC gig. I started getting behind when Covid began, and it just gets worse. I'm also going to have 3 tiers of pricing. 1. Current price but fewer services, mainly only electronic copy and PAY for quick questions. (I've trained most client to use email for nonPII and quick questions, so I can answer when I have time and have a record to save in their electronic file on my computer.) 2. Price increase, at least 10%, for same services as now, but a limit on quick questions before charging. 3. Substantial price increase, adding more minutes of quick questions. Trying to guide clients to the middle price that puts a limit on free quick questions. Maybe Bronze, Silver, & Gold. Or, Compliance, Collaboration, & Concierge. Or, 1,2, & 3. Or, A, B, & C, if I could come up with titles starting with those letters, such as C = Concierge, but should B = Basic and what would A = ? A chocolate treat to the one who contributes names for the 3 tiers!! Marchternity @MarchternityBot Today is March 1865, 2020. It will never end. #taxtwitter

I'm mostly 1040's now but the number of clients with complex K-1's has multiplied--Enterprise Partners in Texas (I think it's a pipeline) must have a very convincing pitch for the number of brokers in Tallahassee who put it in my clients' portfolios. And I just did a Form 6781 for a client who I'm certain had no clue what their broker was up to. So I simplified by getting out of corporate returns, only to have partnerships and 1040's get more complex. Would be hard to specialize in estates when so few Form 706's are filed now. I imagine it would be very hard to specialize in representation now. Pricing is a tough nut--but if you're busy and someone new comes along, that's the time to enforce a minimum price.

New movie trailer: The Accountant ^2 Has promise.

When I first started practicing, a client (new to me then) got audited and his long-horn steer ranching business was determined to be a hobby (which it was, but ...). They're serious about that! (Or they used to be).

I can! Epson Action Laser. I STILL wish I had it. Absolute workhorse. Replaced the "fuser", (or whatever it was called), about 5 times, but probably printed 200K+ pages.

Now I'm hungry!

It was reported on Schedule F. It's been a loooong season.

In general (that means I don't know either MD or WV) reciprocal agreements cover wages, maybe all earned income. I don't think a real estate sale/capital gains would fit under a reciprocal agreement. Does MD give a credit for taxes paid to WV on the MD resident return? WV real estate sale would trigger a WV nonresident return.

I bought my Win7 machine Dec 2011. Had to replace the cooling system and reinstall Win7 in 2018. Seems to buffer videos longer than my Win10 machine, but otherwise seems to run ok, though I'm sure it doesn't have long for this world.

Tom, does ATX allow attachment of a pdf? I can scan and attach any statement I want. I just have to fill in three things: a basic explanation or form it relates to, a reference (such as the form, pub, code, reg, memorandum) and the name of the file with a .pdf extension.

MFJ $595

All I can add is Ditto to all the above!

My clients are very well trained.. I have about 25 returns or so lined up in a day.. all scheduled.. the night before I call up each client on my computer.. answer all the check box questions about dependents, and other administrative aspects of preparing a return. I can get 20 % of the return completed before even seeing one document. I schedule every half hour or 45 minutes if I know they have rentals or self employment income. Clients come in next day. all spaced out time wise perfectly. client comes in.. a brief hello and a welcome. they turn their tax folder over to me.. go through the docs in order of return.. W-2's, 1099s, SSAs.. etc.. then I double check all figures with my ten key, making sure all figures "tie out" to the program.. my clients watch this all on their own monitor.. so i explain as the return is being prepared.... no review at the end as the review takes place while return is being prepared.. print out.. they sign. gladly pay me.. i thank them. wish them well.. they leave very happy and if I timed it right my next client is walking in the door momentarily.

Someone's got broccoli brain!

My last computer lasted 12 years, thanks to swapping in a solid state drive. I ran Windows 8 that entire time. I thought Windows 8 was the best OS Microsoft ever made, and I'm not sure my opinion has changed, yet. I skipped 10 and I'm tolerating 11.

We know it hasn't been adjusted for inflation. You stated, "For high-income taxpayers, rental losses phase out and are totally suspended after $150,000." $150k is not high income, it's middle class. My comment, which wasn't relevant to your question, thus why I said, "as an aside", was just to point out that it's not just high income taxpayers who have their losses suspended. The unstated implication of my comment is that when a politician tells you a law will only affect the rich (or some other class of people you're not a part of) don't believe them. They will use that law to come after you in a few years. There are restrictions on rental losses for pass throughs. It doesn't matter where the rental loss comes from, the $150k and other restrictions apply. The restrictions are on the individual level. The full loss will show on the 8825s & K1s. The likelihood that Drake is handling this wrong is close to zero. It's been this way since 1987 and there haven't been complaints about Drake handling this wrong the past 37 years. It's April 8th. If Drake had a bug this year, we'd have heard about it by now. The likelihood that you're not entering something correctly in the software is close to 100%.

8582 must be produced to determine the correct amount of net loss to use at the bottom for the limitation, if that actually applies. What boxes are checked on the input for the activity? What is the modified AGI being used? Have you checked to make sure that MAGI is below $150K, and that you aren't basing your statements on AGI? I doubt Drake is wrong and is probably doing what you are telling it to do based on your input.

Tom, I have not done one myself but took a look at the instructions. I think it goes in section B for losses from business and income producing properties. Then, take a look at instructions for line 19 where it says to include all of the details you have for it if claiming a loss from fraudulent investment schemes that are not Ponzi-type and are not filling out section C. See what you think of that after looking at those instructions. That's the best I could make of it.

I use five lines per donee, arbitrarily picking one line for the basis, amount, etc. More than one donee, looks like ATX generates a Summary page.

Thank you, @Gail in Virginia and @Abby Normal - I'm so used to the home sale worksheet in the individual return I didn't even think of the basis adjustment columns for reporting the closing costs.

Dos !!! I remember when Dosshell came out (before Windows). Was so cool. Instead of typing in the command line to do things, you could create menus to do them. I think I still have all those MS Dos discs. Im a pack rat with computers. Still have old 286 systems with floppy drives. And a couple Ditto Tape Backup units. Feel sorry for my kids having to get rid of all my crap !!!

I would NEVER do a return without Sch L because it proves that the return is in balance.

I can't remember the brand of my first laser printer (Panasonic?) but it was around $700 and printed 4 pages per minute, but dot matrix printers were more like 4 minutes per page. I was still on DOS at that point so I liked that I could set the number of lines per page on the printer to 72, from the default of 60, since 72 lines was exactly 3 print screens at 24 lines per monitor, and it was nice to have long reports fit on fewer pages.

Most of the clients I've had in assisted living get a letter from the facility annually that states "32% of our charges are considered medical assistance" or "$1,312/mo is the assistance fee" or something similar. Sometimes the letter has to be requested.