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I just read a piece on IRS's new Direct File pilot, where taxpayers from certain states can efile their returns for free on the IRS website. I originally thought this was a great development, getting those simple returns off our desks and saving folks money. Now I'm not so sure. The program handles common items like W2s, EITC and CTC, etc. It doesn't handle Sch B, child care expenses, ACA forms, and the saver's credit. I think a lot of filers don't know enough about these things and may overlook them. I've seen a number of self-prepared returns where people pay for child care with flexible spending accounts and forget to reconcile that on their tax returns thinking they aren't claiming any expenses, only to have the IRS add the amount to their income. Many who enroll in the ACA ignore those forms, and most have no idea what the Saver's Credit is and are surprised when I tell them they got some.extra money. The IRS program handles student loan interest, but I've seen many parents claim it when they are not on the loan. Direct File would be a great program if the tax code were simpler, but as it stands I'm not convinced it's a good option for anyone with more than W2 income.

I Never charge for active duty Military. Never have, never will.

Filing 1065s for the LLCs also removes a great amount of detail from the 1040 and gives the appearance of being separate from the individual return, no comingling of assets, etc.

I think that Intuit and HRB are both feeling the tightening of the screws. I am already receiving random offers to purchase my business. Delete! Delete! In the past week I have had new people call me because they can't file this or that on Turbo Tax unless they step up to the business program. Well, I don't know much about Turbo Tax except, as Sara said, they miss issues that they know nothing about. And, basically, we don't charge that much more for basic returns and prepare them properly; just because WE CAN.

per 1065 instructions: Who Must File Domestic Partnerships Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

Truthfully, I don't understand a lot of this security parlance. I, however, do feel secure in the fact that nobody other than my IT person and myself touch my work computer. Even with my office addition, I am running out of room. We just somehow make it work. This week leading up to tax filing day has been extremely stressful for various reasons. People are bringing in problems that should have been addressed months ago. Sales tax numbers are coming in late.; as are numbers for 1099 filing. I hope to take it one day at a time. Other peoples' failure to be timely is not my responsibility. My eyesight is fine as of now. There is no cure. I have a condition inherited from my father. However, in his late 80s and early 90s he let it get him down. I won't do that. I only hope that along with his eyes, I got his brain because at 92 when we lost him, he was sharp as a tack mentally. I was just cleared of nearly nine years of any recurrence of cancer. Which would I rather have? You all know the answer to that. I hope that each and every person who frequents this board has a season that is nearly trouble free. Some of us have been around for a long time, but if we don't do it, who will? Happy Taxing to all of you.

To me, you are already going above and beyond by not walking away from work today. A SHORT note about tech cost increases is more than enough, and may weed out some who are only cost shopping. You and yours have to come first, always. Can you hire out some of your returns? Maybe even someone here could take a few? Just a random thought.

Wow you have a lot going on. I know you are concerned about your clients and that you don't want to leave them in the lurch. Why don't you send out a letter to your clients explaining everything that's going on in your life and retire now? I am sure most of them would understand. Your health and your husband's health is way more important. This is one of the times that need to put yourself and your family first. I wish you the best.

@NECPA in NEBRASKA retire now; people have time to find someone else. Just say "personal issues" or "health issues in the family" and anyone who doesn't respect that you would not want to have as a client anyway! If you do not want to retire, hike the price as much as you need and then $50 more. Your family is more important.

You are a great American! Tom Longview, TX USCG BM2 1984-1987

Determining whether or not a husband-wife LLC is a disregarded entity is a matter of state law. If the LLC is formed in a state that is NOT a community property state, the LLC defaults to a partnership unless an election is made to be treated as a corporation. The exception is where the LLC is set up in a community property state and meets the exceptions in Rev Proc 2002-69. If it meets the criteria, it is considered a "qualified entity" and may be treated as a disregarded entity for federal tax purposes. The IRS will accept this position for federal tax purposes. Likewise, LLC may file as a partnership for federal tax purposes and the IRS will accept that position also. Consistency in filing from year to year is key, otherwise a change in filing is considered a conversion of the entity. The requirements under 2002-69 for the LLC to be a "qualified entity" are: The business entity is wholly owned by a husband and wife as community property under the laws of a state, a foreign country, or a possession of the United States; No person other than one or both spouses would be considered an owner for federal tax purposes; and The business entity is not treated as a corporation under the applicable Treasury Regulations. None of the above addresses state reporting. Please check your state's law to verify that filing as a disregarded entity is acceptable.

I attended a webinar hosted by an ex IRS agent recently. She said ALL S returns with zero or low shareholder wages are flagged by computer for an eyes on review. First agent can accept return as is or send it for further review. It then goes through a couple more people to decide if it gets audited or not. If SH is taking large distributions and essentially no wage, chance of it being audited are increased. IMO basing wage on IRA amount is borderline fraud. Proceed with extreme caution if you are in any way condoning or advising on doing this.

This is a former Sch C filer and he will be claiming all of the income and expenses on the Sch C. He just said that the Partnership didn't work out. No surprise to me. My Sch C client is the Primary and TMP. I guess it won't hurt to file a zero return with no activity.

if there was business activity (income or expenses), a return is due. And late filing penalties are severe. That's the information a preparer should pass on to the tax-matters partner. I'd leave speculation on the odds of anything happening if they don't file to the partners.

At the end of October there were 1.9 Million unprocessed amended tax returns

My client that called the IRS was told that he needed to file a 1040X with no change to remove the flag from his account. Of course he wanted to file since the IRS told him to do that. So i printed him a return, put in the explanation that it was being filed in response to a CP2057 notice and gave it to him to mail in. I suggested that he attach a copy of the notice to the return. It made him feel better. I can't imagine that it will do anything but create more confusion with the IRS.

Hard to argue RC is met if dist is used for day to day. So silly, the RC game. Those that play are likely served best taking wages up to the ss limit, if they have the option.

Different browser may work, or maybe try setting up with login.gov. I'm not sure if you can have a log in with both of those authenticators though.

I was not kidding, there is no amount (which anyone would pay) which would entice me. I've had enough. It is a natural progression though, and I was so fortunate to start when all computer users were experts, and those who had a computer and my software, were at the top of the expert list. It was like chatting with a trusted colleague. A few of those originals have become close friends. How many times can one person tell someone the solution is to properly read and do what is in plain language on their receipt? How much can someone pay for that sort of hand holding? Of course, had I been paying attention, I would have seen the end was near when W3.1 came out, and I started to get questions about how to find the drive door, and why was the floppy disk in a hard case now. And I remember all too well having to tell some to put their thumb on the label then insert the disk (so it would not be upside down). It used to be a whole day of "fun" things like one yesterday. Looking into how IPERS contributions are to be reported on a W2. (No, NOT required to be in box 14, only a should be ignored "may". Yes, check the retirement box and alter FWH and SWH wages. And the kicker, no known requirement to include the amount in Box 12! as none of the codes apply.)

To soothe a little. Major companies get breached because they offer a better ROI for the baddies. I am not obligated to any entity to prove I am secure. I am obligated to myself. I use a top of the line physical firewall which I set to be very strict for my work machine. Likely, it is as good as any :commercial grade" firewall, as I actually set it tight. Monitored firewall is likely OK, but I would bet some amount they use the same settings for most of their clients (a default of sorts) to keep their support simple. I suspect what you are really paying for is someone else to be in the liability chain (if they were not smart enough to waiver out). On the other hand, there is at least one locality who has legislated "security" (likely for their own political perceived gain) where data is required to be in the physical control of the person, and stored within the jurisdiction. No online backups for those folks, and in the real world, worse security.

Customer support, over the phone, is not something you could pay me for ever again. 30 years was enough. It was great fun the first 10, since I was chatting with people just like me. The second 10 was OK, as many still knew what they were doing (computer, software, and profession wise). The latter 10 was miserable. Since computers have become an appliance (think toaster), the skill level of those using them varies, and the expectation of the computer and the software allowing anyone to be an expert is almost universal. The most recent 10 has been written support only. Works well, 90% are relatively automated, using stock replies I have tweaked over the years. 9% require manual reply. 1%, the magic 1%, are actually interesting. Had one of the elusive ones - similar to decades ago - where both parties learned something in a professional manner - and it was absolutely an interesting outlier situation. Maybe what Drake is offering is pre filtered, but even then, those who have been waiting to reach you will be peeved at best. Look back at some of the posts here, from ourselves, and imagine you were answering us over the phone after queuing to wait.

Some of us have reached a point where we don't want to walk away, but it is getting to be too much to handle alone. Myself, included. I took on a part-time assistant a few years ago and she has gleaned a lot of knowledge but is no way ready to go on her own. In short, if your clients want the expertise and experience that you have to offer, they should be willing to pay for it or find it somewhere else. Charge what you have to charge. You don't have to justify it to anyone. Having just had a negative eye diagnosis, I totally get what you are saying. Panic is setting in, etc. I wish you all things good. None of us are magicians. Handle what you can or what you want to and try not to worry about the rest. I have already called for help. My heart is with you.

Seller and purchaser should both be filing form 8594 with the returns that document the sale, and those must agree. The sales I've been involved with, one accountant prepared the form and sent to the other party for review, acceptance, and inclusion on their return. Remember that any items in the sale that are ordinary income are reported in the year of sale and are not eligible for installment sale reporting.

Why do people do things like that when we are doing everything we can to help them.? I would say that losing this client is worth losing a client. Our overhead continues to snowball.

With the likely nest version of Windows this fall, I started looking. I always get a new box with the new Windows, avoids update issues, and is a good minimum time to get a fresh box. What I want is the new surface studio because it is the most powerful, bigger screen than the other models, and the kbd folds out of the way, but the price has me pausing. I'll likely try a surface laptop this time, and live with not being able to fold or remove the kbd, as the specs are good, and the screen is a little bigger than the surface pro. Old eyes are more of a "focus" these days...

My office, 15 preparers, only use laptops with docking stations. We all have 2-4 screens on the dock along with label printers, quality speakers and other assorted peripherals. Don't skimp on quality, we use Lenovo's only. i have over 12 tax years and every QB program from 2016 on. Everything gets backed up or stored on a server but my hard drive has about 300 returns and their last 8 years of returns and data on my hard drive. That way i have anything I could need while out in the field.

That's a confidence builder

Indeed. Catch-22. File when open, then pay to amend (or whatever it may require to get any additional amount), or wait for the process to work through the system. For those who have enough income to require withholding, it is another reason one should manage their withholding to owe just under 1k every single year (or whatever the allowable amount is to avoid penalty). For those with no actual liability, they are stuck with the games we allow others to play to get our votes. Here it is 2023, and this mornings first waiting message was from someone who is dealing with employees griping about under withholding. We all know what happened in 2020, or should, and yet, there are many who do not pay attention to their withholding until their "IRS savings club" wants money instead of sending a large check.

So frustrating to have this come up at the last minute, since the folks the child tax credit will help are the the ones who like to file right away, because they need the refunds.

The 5 year amortization of R&D costs is pushed out in that bill as well. Wonder if Apple and some of the other giant tech companies and drug companies are lobbying hard in an election year for these changes. I am sure they will take this all the way to Jan 28th which for some dumb reason congress thinks is the deadline for getting these provisions into the tax code giving the IRS 1 day to update their computers and the software companies 1 day to update so e-file can start on the 29th. Dumb and Dumber in Washington DC... And I was so looking forward to a "normal" tax season this year. But I guess I got it because there is no "normal" anymore so "not normal" is the new normal. Tom Longview, TX

For surface, depending on the model, something like the image is handy to add other items. I use BT for keyboard and mouse wheel. Plugged into the adapter are HDMI monitor, SD card (for a local backup), ethernet, label printer, USB stick (second local backup), USB drive (third local backup), and when needed, a code signing dongle (USB). This way, I can add more than typical, and only have to plug in one item when I grab the surface "to go". I keep a second power adapter in our motorhome, and a third in my suitcase. I will often take the periphal adapter with me, as it also has two USB C ports, in case we don't have enough to charge phones where we are at. The surface keyboard stays behind the device (on my desk). I also have an HDMI cable with me when er are away, so I can plug it into whatever monitor is available. I will also bring my main keyboard and mouse wheel with me. The mouse wheel means I do not need any space for it as it can sit on my knee, on a couch/chair arm, anywhere I can reach, even if not smooth and flat. Much of the time I "write" via voice, so a keyboard can be moot too. My prior surface (6 I think) had an SD slot, the current ones do not. I also have a single phone with ATT and Verizon on it, which can switch real time to the best connection, and we bring along a starlink when not on a hotel trip. Handy at home too as I can run it off batts, generator, or from EV power. I would never go back to a desktop, worrying about a UPS to prevent loss from power outages and such. The surface also automatically limits charge to 80% when connected to power long term, which is less bad for the batt - and an easy click to make it charge to 100% when desired. Now, if the surface was water resistant, that would be a game changer, since hot tub breaks I would not have to "work" via phone/splashtop! I have played with huge monitors, dual monitors, curved monitors. I prefer a single flat 27 diagonal gaming monitor, landscape. I want something I can see with just eye movement. Some of the large ones, maybe most, the resolution is too high, making things look too small unless one artificially reduces res or increases magnification/font size. Old eye syndrome... Not that I know it all or have the perfect, it just works for me.

I have never charged a technology charge. I probably should have. Do I need to send out special letters to let my client's know that they are going to get charged one for this year? I just got a quote for managed IT services including backup and there is no way that I can eat this or just add the amount to the invoice without some explanation. I always had annual IT fees that are much lower than this. They are putting in another firewall that needs to be managed, because they said that what my former IT company used (they fired me for being too small) was not adequate, because they did not use commercial routers with a firewall. They are setting me up with a laptop workstation so that I can work away from this desk that is too low to elevate and ice my still swollen and painful knee. I wish that I had just retired last year. Now I wish that I had retired last year. We can't keep my husband well. We don't know exactly what is going on, but it may be his heart and COPD now. He's starting on his 4th round of antibiotics and steroids today since Thanksgiving, even after 3 days of being in the hospital. I'm exhausted and so far behind that I am afraid that I will never get caught up.