Leaderboard

Drake for the 2016 tax year you will need complex passwords. It is part of the agreement the software providers made with IRS. it was one or the main topics at the update seminar.

Please only vote in areas where you have studied the issues and options! None of *us* I shouldn't think, but far too many go in to the booth clueless and fill in the circle or push the lever based on "I dunno; this looks OK". Especially but not exclusively about state/local issues. When in doubt, leave it blank!

The geniuses at Quickbooks have decided to implement a Complex Password requirement on most customer accounts with the newest update. Because my companies have routing numbers with the checking accounts (supposedly) and I have SSNs for employees, I'm forced to enter a complex password before entering each company account. It is currently impossible to remove this requirement and has been dictated by the geniuses at Quickbooks. How arrogant of a company do you have to be to implement this requirement on your customers and force it upon them without any possibility of removing the feature? My computer is fully encrypted so an unauthorized hack is very unlikely. This royally ticks me off probably more than it should.

We don't take many new clients, some referrals from current clients who have a friend or relative whose former tax pro retired. Often I am shocked at how little they had paid and warn them before I even enter their basic info that they will pay a lot more than they used to. They react like they were expecting it, and not one has ever complained about my bill. There must be some preparers out there who don't raise their prices very often, and their clients stick with them for 20+ years paying little more than they did two decades ago. That's impossible in a modern tax office. Starting maybe three years ago we have raised our prices almost every year. The big culprit is software costs, which we all know go up at the rates of college tuition. There are also increasing costs of compliance and risk. When the due diligence rules came out for EITC, we raised the price on all those returns $25 (I know, for folks who can least afford it), even though we do very few EITC returns and know all of our clients. We'll have to determine if we'll do the same for Additional Child Tax Credit and education credit clients this year, now that due diligence will apply to them as well. Whereas we used to take info verbatim from our clients because we know them, now we have to fill out another cumbersome form and face penalties if we don't cross all the t's and dot the i's. Oh, and did I mention the costs of E&O and now computer intrusion insurance? Many of the old timers still did returns by hand (law against that now) and didn't fuss with insurance and potential penalties. A couple of years ago I had a lady come in with three multi-unit rental properties who had paid $100 for tax prep. The hand-done depreciation schedules were accurate to the penny!

When I think of the old days doing returns manually and charging such low prices I think the clients were really getting a bargain. But then again a slice of pizza was only a quarter at Salerno's. But today maybe you make exceptions for the little old ladies who love you, the low income clients, like postal retirees with very little, if any SS, or a HOH with a disabled adult child just making it by. These are some of my clients that have been paying un adjusted pricing for years. You get it back, the little old lady that says I love you and sends homemade cookies, the postal worker who always adds $10 to my bill, and the single parent who says she wishes she had a son like me. For all that, I'm happy what I charge them. But all the others, they pay full freight and like it or lump it, it is what it is, they mostly all stay because they realize the value in your work.

Me as well. Plus, you have to CHANGE the bleeping thing every three months. However they do allow numeric increments (password1, password2, etc). I have been sorely tempted to tell my clients to go back to paper systems. And my preferred qb password is a cryptic imprecation directed towards intuit.

Just yesterday we were discussing the amount that we would raise prices this year. I have to....I need to keep up with the costs. I will lose a few I am sure. I charge by the form, so I need to do a thorough review of all my fees. Not looking forward to it. Tom Newark, CA

I know what it is like to wonder where the next dollar is coming from. I think those of us who have been in that position have more concern for those who are going through that.

I have a twenty-seven page, password-protected document with all the various passwords I am required to keep. Some of the sites also require that you never repeat a password, so I keep a list of the old ones as well as the current. Ridiculous. And yes, my disks are encrypted too.

I have not seen such a requirement, but that does not mean one exists (on paper or defacto). Every taxing agency can impose their will on their subjects. One tax agency can absolutely wag the tail of all others, since software is usually not written for one tax agency. There certainly may be a locality which essentially requires a password, forcing a software vendor to do so for all, or create a special version.

In the update process, Intuit says something to the effect of: "We are making these changes based on input from our users." MALE BOVINE SCAT!!

Intuit's arrogance and stupidity stopped amazing me a long time ago. I've come to expect it. But I was surprised by their grey on grey depressing default color scheme for QB2015. Looks like it was designed by a depressed, alcoholic, Russian poet.

Since I don't use QB payroll services, it's actually very affordable. Well - Free. A client buys the new version every other year and gives me his copy to install since I refuse to pay for a new version. Holy cow this really ticks me off. I've read they have been inundated with complaints so hopefully they roll this back out with an opt out feature. I'm always amazed by the arrogance and stupidity of software developers on issues like this.

I detest all of their garbage. If I could get away from using QuickBooks or having any of my clients use them, I would be ecstatic.

Elderly couple (both gone now, bless them - they were darlings) came to me years ago due to an IRS letter (agency was wrong; he was right). His hand-done (no calculator; paper and pencil and brain ONLY) estimated payments for the year were off, for the entire year, by $16.

Ditto, likewise, and me neither!

Over the years, I've increased my minimum for new clients to $150 ( and I'm sure this may be low for some ) for the most basic federal and one state. Some of my longer tenured clients may receive more favorable rates. Most of my clients don't bat an eye at the price. They recognize I am very reasonable and provide them with top rate service. Those who have left due to what they perceive to be a high price, have been replaced with two or three new clients. I look to establish a long term relationship with those I partner with. I provide prep and planning, mainly looking at what the future holds and how it may effect their returns in years to come. I do not prepare returns full-time, but after my full-time day job. That doesn't influence my pricing. I believe my experience and credentials provide ample justification for what I charge. If clients feel differently they can pursue other options.

Remember your breakfast.........

This article on Tax Pro Today is like throwing stuff on the wall. It doesn't tell you much.

I have a spreadsheet for my passwords too. I'd never be able to remember all of them. And some require changes every 3 months.

According to the ATX Blog, they will be requiring complex passwords plus secret questions with the coming Tax Season's software. There was an IRS Security Summit earlier this year attended by Tax Software Providers and State Revenue Departments where the participants agreed to implement these security related changes. There is more detail about this on the ATX Blog.

Better chance of you winning the PowerBall...

Software companies are succumbing to the irrational paranoia of software and internet hacking security. If an experienced and determined hacker obtains access to your network or computer, these silly simple padlocks will only slow them down about 2 minutes. I already carry a flash drive with me containing a spreadsheet with login and password information for all the companies and accounts I deal with. 235 line entries. It is the only way I can keep track of all the different sites and requirements. With my spreadsheet, I only HAVE TO remember one password. Irrational paranoia is costing companies millions in lost productivity.

I don't believe there is such a law. The IRS suggested firms be more pro-active in requiring passwords and I'd suggest that's the issue. I know my software has started suggesting a text verification for my computer to access their online site - it's a suggestion offered and not a requirement. The software though DID kick out the saved password feature. Drake for last year hasn't made that a requirement. Medlin Accounting isn't requiring a password as of yet. Since they post here, maybe they can inform us of any law requiring such an action.

As a die-hard Indians fan - through all of the up and down (mostly down) years, I have been a fan. Even when it was not fashionable to be a fan. Even when I lived halfway on the other side of the country I was an Indian fans. I am one that is not at all happy that the Cubs won - or rather that the Indians lost - the series. I was hoping this was our year and that the Indians could win one in my lifetime. But alas, (and I have this recorded so let me just hit the "play" button) - maybe next year, maybe next year, maybe next year. Come on Cleveland, I am running out of years. Oh - congratulations Cubs - you earned it! It was a great series!

If you haven't seen the letter, how do you know it is even from the IRS? Any letter clients receive about taxes they almost always attribute to the IRS. Even if it were from the IRS, you have to see the letter. You can not rely on what clients tell you as they don't understand what they are reading. Don't waste your time on this until you know exactly what the issue is and who the tax agency is.

I chip away at this all year when not in the heat of the season. I need 34 CPEs/year. Not that I'm disciplined but one year I got caught doing it all in December and missed the Nutcracker, A Christmas Carol, Shopping, a Christmas party, and Santa Claus. I vowed never to do that again. I just finished everything with my last ethics course yesterday. Now all I can think about is turkey and the parade. Never want to miss that, I catch up on all the Broadway show tunes, that's a lot better than choosing a, b, c, or d.