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Last week, in the middle of a busy day and sitting with a client I received a call at my office from a number listed in Georgia with the IRS identifying it as "IRS". Another staff member picked up the line but when they transferred it to me the line was dead. Several minutes later my cell phone rang with the words "US GOVT" on the screen and the number 1-678-537-8873. I answered and the male voice asked me for by first and last name. I was immediately on the defensive because I know the IRS does not call and does not ask for identifying information. However, the person sounded professional and identified himself as being from the IRS, gave me his name and ID number and said he was calling to follow-up on a certified letter sent to preparers in October (me mentioned the specific date) reminding of them of due diligence requirements for the EITC and ACTC etc. However, I know that many preparers received that letter so it was common knowledge. Then he said he needed to confirm some information from me. I was immediately skeptical but I felt that if he didn't ask me for any info that wasn't already public info, I'd play along. He asked me to confirm my name and full office address. Then he asked to verify the last 4 digits of my EFIN or SSN. At that point I told him that I could not provide such sensitive information over the phone For a second he seemed to stumble for words, then he stated that then he could not continue with the phone call. He gave me a phone number and e-mail address (which was printed on the October letter I believe) to contact if I had any questions. Then the call ended. I did a Google search for that number and there seem to be quite a few complaints online from people receiving a calls fake IRS agents from this Georgia phone number and they warn not to give any personal information. Obviously there have been IRS scams has been perpetrated on the public for at least a year but they usually involve claims of IRS debt and warnings of arrest or garnishment if not paid. Even I got one of those spam calls over the past summer. But this is the first time I have been targeted as a preparer. My guess is that this individual would have said he couldn't verify the last four digits of my PTIN then would have asked me to ready my full PTIN or SSN back to him to verify. Then he may have attempted to get me to provide personal information on my clients. I tried several times to call that number back but the lines goes dead immediately. Or maybe I'm wrong and it was actually the real IRS and I didn't cooperate with the phone call . But I'm skeptical because the IRS explicitly stated that they never call. They communicate via letter. I also find it doubtful that they would be calling On Feb 7. in the middle of peak tax season, when they are just as busy. My thought is this is a scam timed to take advantage paid preparers being busy and distracted and perhaps more susceptible to being duped. I wanted to warn you guys in case you see a similar call.

The problem with the new ALL CAPS preference is that any edits to K1 letters and billing invoices are in caps (people have already complained about this). Also, Notes are not in caps so I have to turn caps on anyway, when I need to create or edit a note. I submitted a suggestion to to give us 3 check boxes for caps for forms, K1 letters/billing invoices and notes.

Yes, we preparers are currently a prime target of these phone and email scams. Beware!

YES, WHY YES I DO. AND I HAVE THE SAME PROBLEM WITH TW PASSWORD. sorry, didn't mean to yell...

Not sure if you knew this or not but ATX has a preference to use ALL CAPS for data entry. I saw someone else mention it either here or on the other boards. This way you don't have the CAPS lock on, you just type in ATX and you get uppercase and then you have normal typing everywhere else (so, you don't have the issues with passwords and caps lock) In preferences, on the Open return button(tab) , it is the first checkbox there. "Use ALL CAPS for data entry"

I wonder what they'd do with an amended return that removes the penalty?

We use caps on tax returns and notes but not letters, for readability. I also have an AutoHotkey script that turns caps lock off if you hold shift and press a letter. I always make the first letter in my passwords capital so that I never type a password wrong.

I use all caps on tax returns. It makes it easier for me to see entries. I do set Caps Lock, but I also have a setting in ProSystem fx that puts my data entry into caps no matter how I enter it. So, I could leave Caps Lock off if I choose. (I don't use all Caps on client letters & instructions, though.) So, if I've set Caps Lock and return, like you, I can mistype my password. Luckily my sign-in box has a yellow warning triangle and states "Caps Lock is on" so I know what the problem is. (I have other software that releases Caps Lock when I try to enter, which is really handy this time of year when I use Caps Lock most of each day.)

Just read this: https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals The key item seems to be that paragraph that starts with "However,..."

The floodgates opened this week for us. I have only seen one brokerage statement so far (from Fidelity), and when those hit the mailboxes I expect to be inundated. Already have a week or two of work in queue and am already yearning for more sleep and more balanced meals.

Use word of mouth advertising. If you want new clients, tell your best clients that you have space for a few good new clients. Tell them you want more clients just like them, or in their profession, or in their neighborhood, or.... That way you stand a good chance of getting more clients like your best clients. Referrals are better than strangers who find you online.

This is the same outfit hawking other products like E & O. They probably have all our contact info from IRS and making a business out of it. I would stay away.

Ive always used CAPS for returns.

Yes. Think about this: Let's say president Obama signed a law that required banks to use the FMV of houses and to forgive people the rest of the debt. You are not insolvent but the bank forgave you $20K. Are you going to pay any taxes if that was your primary home? NO. That's because each exclusion stands by itself and you don't need to be insolvent. Have you done a credit card debt forgiveness in the past where the client didn't have to pay taxes? Let's say you have a client whose credit card banks forgave $50K. The clients is insolvent and those were personal credit cards used to travel around the world for fun. You will use option 2, correct? As long as the client is insolvent prior to the debt discharge, client doesn't have to pay taxes on debt forgiveness. AND the client doesn't need to file bankruptcy.

According to the latest ATX blog line 61 will be soon be optional and not be rejected for no form 8965 and no checkmark!

Thanks for the warning! I am going to share with my local professional society.

Just make sure the one you choose is IRS compliant. Some are not. https://www.irs.gov/uac/new-electronic-signature-guidance-for-the-irs-efile-signature-authorization

With this years software... Just clearing all the right boxes on the 8867 for anyone entails a $150 fee. It goes up from there. But, I would give her papers back and say "see ya!" Rich

Just a thought - since your fiscal year end is in 2016, which means your fiscal year beginning is in 2015, are you using the 2015 software to generate your extension?

I use all caps on my returns. I like the feature that ATX locks after 30 minutes. That a big security feature that all of us should be proud of. My problem is that when I come back, my keyboard is all caps. Most of the time I enter the wrong password a couple of times. I hate to type McAllen or McDonalds and that's why I use MCALLEN and MCDONALDS on my tax returns. Do you use all caps?

I had a client go this route. Had to gather all assets and liabilities to prove insolvency. Darned if he wasnt. Him and his wife made good income too. Claimed she was a chronic spender. Ouch!

Not exactly... my husband runs an HVAC Company, so an example would be: Customer is building a new home and wants a new Heat Pump installed, he also needs ductwork... the whole deal. We buy the heat pump from our supplier, the metal for the ductwork from a supplier, misc fittings, supplies etc from home depot. We PAY sales tax on EVERYTHING we purchased for the job at the time of purchase. When it comes time to bill the customer we bill one total price for the job. There is no sales tax billed to the customer and there is no sending more sales tax to the state. It was all taken care in the original purchase of our materials. I'm not sure how hair dressers work, but auto repair shops (just from using them) charge me sales tax on parts but not labor.

Use option 2. Debt canceled during insolvency provided you can prove he was insolvent the day before the debt was forgiven.

I agree with the others but am not sure about holding a copy of a credit or debit card. I would be careful of the legality here. Maybe I am off base here but I remember signing documents with a CC processing company that stated very clearly about not holding credit card information. I like the post dated check idea as well as letting them pay when they get their refund. Crank if all else fails, just cut your losses and move on. Been in your shoes a few times and it always happens that for every client I lose, I get two or three in their place. Don't know why this is but it is.

Bump... Thank you BHoffman.

I am filling out a 4852. I wish they had a magic button that would transfer the information into the W2. It seems like such a waste of time to put the exact same information into the software 3 times (Fed 4582, CA 3525 and the W2). Is it just me or is this a no brainer that the software should do this. Tom Newark, CA

SSA is aware of a glitch in their system and expects it to be fixed by 2/20

I made the same blunder as jasdim and appreciate seeing this thread. With this info I was able to efile the extension for my deceased mother's 1041. Thank you all .

What gfizer said...except I don't quote the price up front. I tell all my new clients that they can see (but not take) my price list. Whatever forms that the tax return generates will be charged for. I also tell them that if they don't like the price I will take my tax return back and they can have their documents back and we can both go our own way with no hard feelings. I don't want unhappy clients, but I feel my prices are fair so I am not negotiating after the fact. This reminds me of my Econ Professor, Mr. Yergi. He taught us the "Prostitution Principle of Economics". The value of a service declines immediately after it is provided so service businesses should always get paid before the service is rendered. That is why hookers get paid up front. You should have seen the shocked looks on the faces of my classmates when that lecture happened. Still brings a smile to my face when I remember that lesson. Tom Newark, CA

Will the bathroom remodeling increase the value of the vacation home?

No need for that! We are all in this together and are here to lend one another a hand when we can. Your turn is next! Glad I could help this time!

Well, that was brilliant, and worked fantastically! Thanks so much. This is one of those 'was my face red' moments. Second one this month, actually . Thanks again!

For those that are getting refunds via direct deposit and can't pay out of pocket, I offer FeeCollect and they love it. I simply tack the processing charge for the bank product onto their prep fee and we are good to go. If they don't use direct deposit I will occasionally allow them to pay me when they receive the refund if I know them or their family well. Otherwise, I quote the fee up front based on the info they give me and tell them that as soon as they pay me I will prepare and file the return.

Yes. Neither snow nor rain nor heat nor gloom of night nor sheets of plate glass could prevent that lady from getting that timely postmark.

Also make sure you have not marked the return complete. I had this happen once to me and I put a check mark in complete instead of select.

Sorry, you will have to read a lot before I get to my point. Let's say... when my back was wet, I went to look for a job and my employer ask me to write down my social security number and I wrote down 213-65-3234. I started working and I got a W-2 with SS# that I invented on the spot. If the year was 2016 or before no problem. I went to a tax preparer and he was able to apply for an ITIN and he is able to efile subsequent years by entering that SS# listed on my W-2 on the W-2 form of ATX and my ITIN on 1040. Year 2017 comes and now my W-2 comes with social security ***-**-3234. I don't feel comfortable to call my employer and ask "can you tell me my social security number"? In my case, I will have the old W-2 and no problem. If I start working in 2017 and I invented that number, then when I am ready to prepare my taxes, I will not know the whole number. That will cause some issues to the IRS person who will assign an ITIN and to my preparer when he tries to efile on subsequent years. How about when I am a US citizen and my social is 577-32-2333 and my employer makes a mistake and my W-2 is under 571-23-2333 but I cannot detect that issue because my W-2 reads ***-**-2333. Just a thought.

Happened to a client of mine; employer had one digit wrong and the employee only caught it at year-end in the W-2; AND it was in the first three digits. He would never have seen it if the full ssn had not been there.

Most of the payroll returns are done (w-2's and 1099's), although a couple of clients with new contract workers did NOT read my notes about "due 1/31" and just got me info over the weekend. I have had very few tax returns come in, so far. In a way it is terrifying, because it just means the onslaught will hit even harder. But folks here have mainly been digging out from our back-to-back winter storms. The ones that have come in are mainly done. Always the "missing item x" issues but turn around has been quick because we are not yet swamped.

Sounds like she was unhappy with the recent rate increases. But the important question is, did she get her mail posted in time for the last pickup of the day?

I haven't shoveled my front walk to the mail slot in my door since the last storm, but they do keep coming. Lost one gal who's life got simpler in semi-retirement, so she's trying it on her own. Sorry to lose her, but will be even sadder if I lose her dad along with her. They're both nice to work with and no more than the usual chasing for missing info. Just lost a more complex couple who took a LOT of time. They'd moved farther away but like to both interview and then pick-up/review in person each year, which has become a hassle for them to schedule between their trips to FL and medical issues and also a hassle for me to fit them in and VERY time-consuming. Both very intelligent: he a banker and mellow and she intense and tracks everything in pencil on dozens of pages, does sum it all up, but even that is a few pages. I need to tie everything from her pages into their tax returns to satisfy her, including pieces such as medical where some premiums end up on page 1 as SEHI with the excess on A or the LTC that is less than her payment due to IRS chart. They then take their paper returns home to go over again and either sign/mail or book yet a third appointment to question more details. (In recent years, I've required third appointments to be AFTER tax season; but that means they chose to mail returns on time and I've been stuck with amendments if they actually had new information for me.) I can't charge them enough for my time, so I don't think I'll miss them that much, even though I enjoy working with intelligent people. They always want this mid-February to mid-March time when I need to work on 1065, 1041, and 1120-S returns (not to mention recalculation of their SE payments for January based on her preliminary pages and MANY questions in January when I'm trying to get out W-2s/1099s and payroll reports) so I think I'm fine with them finding someone closer to their home, finally. In the meantime, a couple of clients have sent referrals and a couple of individuals and businesses have opened new business entities, so I have more clients when I'm old enough that I'd like to lose clients by attrition. My core clients are just receiving their 1099-Bs and calling.

This isn't a penalty. Penalties can be waived or abated. The individual mandate was ruled by the Supreme Court to be a tax. If they had ruled it to be a penalty, we would not be having this discussion. The individual mandate is a tax, and it is in place as a law. The IRS is charged with enforcing the tax law. The President's duty is to uphold the law. Only Congress has the authority to make or change the law. So, IMHO, we don't have the option of failing to properly report the individual mandate tax if we know or should have known it applies.

So, the law has not changed, and people are supposed to pay a penalty for choosing to forgo paying five prices for health insurance that used to be affordable but isn't now. Now we are in a position to say to them, "You'll get away with it if you don't pay". Actually, we've kinda been in that position the whole time on this one. This is a really crappy position to be in, and I'm wondering if we're also supposed to be telling people who owe income and self-employment taxes that they can just not file for eight years and all will be well. They still owe, the law didn't change, but they'll get away with not paying because IRS won't pursue collection. I mean, if our people who file and pay get wind of this, are they going to sue us, too? And what if we advise people to lay low for eight years, and IRS changes their policy and says, "Nope, the law is the law, we will pursue collections forever"? Do those folks sue us, too? Yes, I am being facetious. A little. But not all that much.

I think you're good and that is correct. ATX yells at you (well me) if you DO check the box on Line 61 for a dependent. You are in there like swim wear, friend.