JJStephens

Who snapped my pic this morning before I dragged a comb through my hair? Ya gotta admit, my hair ain't too purty, but my eyes sure is!

Wowzers! I'm having a similar problem & just logged on to post an inquiry about it. I was shocked to see someone else had recently posted a related question for such an obscure issue! In my case, grants totaled $7100 of which $5900 was to another 501c3 organization. Form 990 Part IV Q21 is marked 'yes' and Q22 is marked 'no.' On Schedule I Parts I & IV are completed. I have the recipient organization listed in Part II (because the other organization did not receive more than $5000 it is not listed). Part III is blank because no individuals received grant funds. I'm still getting an error message saying that since Form 990 Part IV Q21 is marked 'yes' Schedule I is required. Thoughts?

I feel your pain. A while back I had a client/personal friend who dropped his stuff off at 7pm on April 15. Said he & his wife were on their way out to have dinner; said he'd be back before 10 to pick it up. Stupid me. I raged under my breath ... but did it. Here's the kicker. The next year he decided to try another preparer closer to his home. I haven't seen him since! Works for me.

Hey Doug--thanks for the encouragement. After the first denial we resubmitted with THREE doctors certifying she was disabled. They summarily rejected it again. That occurred as we were in the midst of moving (a massive ordeal, given her condition). After we got settled in we called and they admitted that they did not even consider the doctors' affadavits. And they informed us that we had exhausted our appeals and the deadline for filing had passed. We gave up. A couple months ago we discovered that was not true so we engaged a new attorney and began the process again. Update on the pricing issue. I sent out a price increase notice to all my accounting clients and got one response--essentially 'we're delighted with your service and happy to pay the higher fee.' The rest apparently just yawned and went back to sleep.The bottom line--no fall out whatsoever (he says with a goofy little grin plastered all over his face). I plan to send a newsletter to all my tax clients in the next month or so alerting them to the new schema. I hope I get the same results!

I agree that more penalties are being assessed but I attribute that to 'improved' ability to catch errors via automation. That said, I've found that if the client had no prior problems and if you approach them nicely (i.e., not adversarially), the IRS is pretty good about abating penalties.In fact, over the past number of years I've never failed to get an abatement for a first time error.

They offered me a 5% discount (on top of the 10% early-bird discount) but even so, with that it will be $1336. I'll probably end up doing it but still plan to take a look at Drake. I downloaded their 2014 demo & they're doing a seminar near me next week.

I want to test my new billing model against last year's returns. Do any of you know a way to extract a report from ATX that show which forms/schedules were included in each return? I know I can extract that from the billing module but I don't want to have to open every return to get to it. I've searched everywhere and can't find a way to do it globally. That would actually be a handy thing to have for a variety of purposes. If it doesn't exist I wonder whose arm I'd have to twist to get ATX to add that feature.

I've been off the board for several days--still dealing with the second of two kidney stones that slammed me back in early April (great timing!). I've been working on a new pricing model for both my tax and accounting work. It nets out to about a 25% increase on tax work and 20% on accounting work. I'm giving existing clients a 10% discount the first year to ease the pain a bit. I'm also going to scale way back on the freebies (I'll ask then to at least contribute enough to cover my overhead). Comparing it to the responses to Yardley CPA's Fee Schedule posting (great idea, by the way. I had the same idea a couple days ago but having been hurting too bad with the stones to post it. Was really happy to see that someone beat me to it). Anyway, based on those responses it appears my new fee structure will be much closer to what many of you are charging. I'll still be just a bit under the big boxes but I can live with that. As I project it out (even allowing for a 5% lapse rate) I feel pretty good about where I'll land over the next year or two. Thanks again for all the great counsel and for giving me the kick in the seat that I needed to make this happen.

On the speed issue--I've had my current machine (decent dual core processor with 8gb of RAM) for 2 1/2 years. It seems to run ATX just fine. However, I have noticed that it now takes about 50% longer per return than five years ago. I know the code has gotten more complex and the IRS increasingly uses tax preparers as enforcement agents but some of it is just increased complexity in the ATX process (things that used to be direct entries now required opening a separate screen to make several entries) and in the ATX code--rollovers take longer, opening a return takes longer, saving takes longer--all things that point to bloat. I'm grateful things are better than '12 but Oh for the good old days when I was cranking 'em out with Parson's tax package. $79 and flawless execution! By the way, in case you're curious, after selling off the pieces of Parson's Technology Bob Parsons started another little computer outfit. It's called GoDaddy.

Hey Rita, we chatted about this in another thread a week or two ago. In my case, the problem is not that they expect a break. It is that I give it to them. In all the years (28 or 29) I've done taxes I've had only one pastor ask for a break solely because of his clergy status. Of course, most of them came to me because of word of mouth and knew I already had ridiculously low rates. However, I think/hope most came not just to get a price break but because they were looking for someone who specialized in the unique nature of clergy tax prep. Like you, I've seen some misguided counsel given. I makes me as sick as it makes you. But frankly, those have been the exceptions rather than the rule. I can also tell you times that my colleagues (and I, on at least two occasions) have talked suicidal people into giving life a chance. Or the times they have put in ridiculous hours to try (often successfully) to salvage a marriage that the players seemed ready to throw away, or commiserated with parents over a wayward teen, or a spent hours at a hospital bedside or garsh, I could go on ad nauseum, but you get the picture. Sure there are charlatans out there; but aren't there just a few scurrilous tax preparers who give us all a bad name? No true professional wants to be judged on the sins of a disreputable few. I do respect your position and your frustration over a few bad actors. I just hope you'll give the honorable majority the benefit of the doubt. Anyway, that's my two cents worth.

KC-- we had an attorney a while back but the guy--a supposed specialist--gave up after the first rejection. We didn't press it because just about that time the docs finally found a med regimen that seemed to be working and we hoped she would be able to return to work. Turned out to be just a temporary lull. She started to pursue the claim again but was told by SS that she had missed the filing deadline. About a month ago she started working with a new attorney who does nothing but SS claims. He is virtually certain he can get her approved ... eventually. He says it will likely take 1-2 years and that if/when approved she would get benefits backdated to two years prior to her application. So, we're hoping for a 'someday' mini-windfall. Till then ...

Interesting. I'm probably a bit too much of a people person for my own good. That's a good trait when I have my pastor hat on; not so good when I have my biz pro hat on. As for Drake--I've reached a point that it is the only thing I am willing to consider in lieu of ATX. During my one year off from ATX I used a product that was somewhat similar to Drake. It took a bit of learning but I got the hang of it. I've demo'd Drake half a dozen times during my 28 years as a preparer. What I've discerned is that those who love it really love it and those who don't really don't. Over the next couple weeks I'll find out which I am from the demo I ordered. Anyway, I'm excited to launch my 'reinventing the way I do business' project over the coming days and weeks. Thanks again for all the great input.

Great ideas. I already show the full fee and the discount. I think I've decided to bite the bullet and either stay with ATX or maybe jump to Drake (I had already schedule some time to do an evaluation and am scheduled to attend one of their seminars in early May. I'm about 99% sure it will be one of those two. Again, everyone, thanks for the great advice.

I got the same email. When I clicked the link it quoted a price for Max of $1268.10 plus $69 S&H (plus sales tax). Here's the link https://sales.cchsfs.com/CartSummary.aspx

Here's a FWIW relating to my original post. I found an outfit online called Sigma Tax Pro. I got mildly excited when I discovered they offer full-blown Drake software for $495. One of their reps just called me. Turns out they REQUIRE use of one of their two bank products with a minimum fee of just under $95/return. Scratch that one.

Since I'm in confession mode--here's another lulu (that Judy's last post reminded me of). Last year when I entered my price list in my haste I inadvertently used a three year old price list as my starting point for computing the increase. Even with the 'increase' my fees last year ended up being about 2% less than the year before. You know, as I read back over this thread, I'm coming to the same conclusion some of you are coming to-- ole Jerry ain't so bright, is he?!?!?

There is a similar biblical principle that says a laborer is worthy of his hire. I teach it, I preach it. I just don't do it! I've always subconsciously based my pricing on 'how little can I charge and still pay my bills and keep from starving.' If you could see me now you would notice that I have a stupid sheepish grin plastered all over my face as I slowly shake my head. This is timely in another way. Over the past month or so I had come to the conclusion that I was going to have to adjust my consulting/accounting fees as well (they have been similarly under-priced). I had come up with a tentative plan that involved a nominal increase. I've been kicking myself for not having already sent out the new price sheet. Now I'm glad I didn't. I think I'm going to have to approach it with a different perspective. Hey everyone, thanks for your input and allowing me to think out loud. This has been really helpful.

Thanks for your sage input. To be perfectly honest, you're telling me what I already know ... but it somehow sounds so much more valid coming from someone else! I have always felt a little bit guilty for thinking those kinds of thoughts! The majority of my clients are clergy (I'm also a part-time pastor)--I use that as my excuse for sub-market fees. Most of the freebies are either family or retired clergy who have little or no income. I also tend my waive my fee if the client is in the midst of a legitimate hardship. When I started doing this a hundred years ago I was pastoring full-time and my wife was working full-time--what I got from tax prep was gravy. Six years ago my wife suffered a seemingly minor head injury that suddenly turned into a major, life-threatening illness from which she has still not recovered. We lost her income (Social Security has repeatedly denied her disability with the excuse that other people who suffered her injury are able to work so she should be able also) and having to care for her rendered me unable to continue pastoring full-time. So now my consulting gig is all I have now (the small church I pastor contributes a very small amount). About 1/3 of my income goes to pay her med bills. That is what prompted me to search for something less expensive--these days I need to conserve every dollar I can. The truth is that I probably need to do a serious re-evaluation of my business model. Here's the pathetic part of all this (confession is good for the soul!)--part of what I do is business and personal financial counseling. I regularly counsel people like me. And they end up doing very well. If I were counseling someone like me I would be telling me to do things very differently than what I've been doing. You're right. I'm a goofus! Sounds like I have some work to do.

Judy, you make some valid points. And I guess a $10 bump wouldn't be that bad. Sure wish I'd thought of that back in January! I bumped my base rate only $3 and left everything else the same as last year. What I probably need is not a new software package but someone with some business brains to come in and run my show for me--I'm too soft-hearted. I've used Max (or it's equivalent, pre-ATX) since back in the early 90s. I left for two years with TRX (they initially offered full-blown ATX for $299, then lost their license to offer it after one year). That was a disaster. A couple years ago ATX offered me $795/yr for three years to come back. That expired this year. With tax and shipping, my renewal will be over $1400. I hoped to find something reputable in the $800-$1000 range. Maybe it's not out there. I agree with you about one more thing: I am definitely not interested in the bargain basement software that seems to proliferate every couple years. I may end up having to bite the bullet. Frankly, I wouldn't be heart-broken if that happens. I'm pretty accustomed to ATX and outside of the 2012 debacle have had pretty good luck with them.

If it is April 16, it must be time to think about software for next year. I've used ATX all but two of the past 20 years. Given my case load and fee structure, I'm not sure I can afford to stay with them. Drake is similarly priced so that isn't an option. Here's my gig: in addition to about 110 paid returns I do another 30 or so freebies and a boatload of 990s; I only do a handful of 1120s & 1065s. My fees run about 60-70% what the local big box preparers charge. I'm told I need to radically adjust my fee structure but for some goofy reason, I have a hard time doing that. I recall early in the season getting a couple propaganda pieces from some new players but I didn't have time to give them more than passing notice. ... and now I can't find them. What are some of the other affordable packages you're looking at ... or better yet, have tried and found competent? Perhaps we could turn this into something that would benefit more than just yours truly. If you're able to weigh in I think it would be helpful to those of us who are shopping to share things like: Name of the software (and who is behind it) Main strengths/weaknesses What returns are included Website Cost Whatever else you think pertinent Thanks for your feedback!

Assuming the reward is a sales reward, Pub 334 (see pg 34) indicates it is a Schedule C item.

Each time I talk with the family the details change. They started out telling me what they hoped would happen and eventually got around to what actually transpired. Turns out they were never successful in getting a renter in the property and they ended up selling it at a loss. The niece who is been administering the estate has been out having two surgeries in the past two weeks so contact has been as spotty as the details. The 15th can't get here quickly enough. Between two kidney stones, a sinus infection and the attendant meds on top of tax work, I'm toast.

See. That's what I hate about this forum. I never get the answer I want. All I ever get is the right answer. Seriously, thanks Catherine.

I have a client (retired pastor) who sends in his stuff every year and every year I tell him he doesn't need to file. I go on to tell him that if there is no change next year, he won't have to file then either. I told him to just call me and let me know know what he got (It is always one 1099-R for about $5k and a SS statement). I keep telling him he is not even close to the filing threshold. Every year he sends a $25 gift card to a local restaurant. I've begged him to not do that but he insists. Some people are just unapologetically happy, generous souls. I want to be like that when I grow up.

This got back burnered ... but now can't be delayed any longer (deep sigh). Turns out there was no rental activity. They simply sold the property with only a small gain. Since there was no income (only a distribution of the proceeds from the sale), is a 1041 required?