MsTabbyKats

I'd tell the client to call IRS. It's a lot more direct.....

Omg....

MsTabbyKats likes sitting in her warm apt in the winter. She barely goes across the street to the supermarket. She certainly isn't going to the post office, UPS store, dentist, hairdresser...etc....to pick things up.

I figure I'll just charge extra...and if they don't like it....they can go elsewhere.

A few of them will be told I no longer do returns.....those are the ones with more mtge interest than income etc...aka PITAs.

I get more work than I want on line. I outsourced quite a few this year.

My goal is to make life easier ....not complicate it.

My post was not meant to imply that I'm concerned about losing business....because I'm not.

Just that things were changing for me....and I had to come up with something to avoid future stress.

But, I do appreciate the input.

Thanks....but I live in an apt building. No doorman either.

Hopefully many of these people will either fax or e-mail.

I'm planning on telling a few of them that I'm not doing returns anymore.

The reason I asked is that next season things will be very different for me. The majority of my work is internet based. But my husband's store was a drop-off pick up location for about 70 people. He sold the business.

Although I live across the street...I do not want people coming and going at their convenience . In addition....these were all paper returns. Then there are the handful that feel they must see me face to face...something else I don't want.

So, I'm going to have a $25 surcharge for all of the above...and tell them my fee is still below the market rate.

Sounds like you are overdue to raise some fees on those problem people. You ARE worth more than you are charging. I have not known any self-employed tax preparer (myself included) that charged what is appropriate for the level of training, experience and skill that is required.

I instituted a 25% increase in my base minimum. I had 3 people ask, and not one complaint after the explanation.

What was your explanation for the 25 per cent raise?

All my Feds were accepted...but I've been waiting for states (NY) for over 2 days.

Mine are still hanging also....

I cracked the code!

Just 24 hours to go......

To add....her HR dept would make sense if this were a NY/Any other state thing...as far as both states showing the income and NY giving a credit.

But...it doesn't seem to work this way for VA...which is the problem.

Btw...HR is in CA...

Thanks. But there is a complication. Her HR dept said the options gain was on both states W-2..and VA should give her a credit for tax paid to DC. But VA doesn't seem to allow credit for residents or part year residents.

And the numbers just don't make sense.

Are you interested in this one?

I'm almost sure that HR messed up. If it weren't for this credit of $6000...which HR says she is entitled to...but VA feels otherwise...there wouldn't be a problem.

Client is part year VA and part year DC.

Should be simple...but she exercised and redeemed options (DC employer) after she moved to VA.

Numbers don't make sense...and she should be getting a VA credit for taxes paid to DC for the options.

But I'm not able to generate it...program says she isn't entitled. And I'm clueless.

I told her I couldn't do it...and suggest she go local.

Any VA preparers interested.

To answer your question...

When people put the money into the 401-K....the only thing they hear is "less tax" that year. They don't hear "59.5" or 10 per cent penalty"

Then they need money...and don't have it,.....so they take the money from the 401-K.

People need to be made more aware of possible consequences before they make contributions.

Ok...I thought I heard it all.

My son lives in VA...and a co-worker asked about my services.

He didn't want to use me because I don't have a refund guarantee.

Do people actually guarantee a refund? And if the person owes...???

I have a pile of 10....in disbelief that they owe money.

I'm just waiting for reality to sink in.

My deadline is 9 pm tonight....then they all get the "to avoid penalties" e-mail

Read the article ....and just want to mention that this happened about 2009...when you could actually get helpful help from the IRS

and it was the IRS who told me how to deduct this. I also had a client who had $110,00 in a bank account that year...the bank went under...and she lost $10,000. I reported it the same way.

A few years ago a client had an annuity that became worthless. I believe I took the loss subject to the 2 per cent. The taxpayer is alive and well.

Oh this is simple.

Compare it to a diamond purchased on credit.

The diamond doesn't depreciate...and that kind of interest isn't deductible.

Ms Tabby,

Looks like a little Fruedian slip in that spelling...

I review what the client might have as total itemized deductions on a joint return, and if there would be enough to itemize, then I itemize. If not, I go Standard Deduction.

Rich

Spellcheck slip.

You never know what the spouse has as far as deductions...that's why I use income or occupation. If spouse is a file clerk...highly unlikely she will itemize. If spouse is an investment banker ....highly likely she will.

I combine logic with facts...and never had a problem.

I actually do some returns where spouse doesn't have to file (embassy employees )....and I've always used standard deduction for the one filing.

I'd do what's best for my client. I've done this in the past, and never had a problem.

But, I would ask what he thinks the souses's income is...which should be a good indication of what the spouse does.

Counting my money!

I just have to update this.

Yesterday this guy asked me to do his 2013 return ...and I said OK.

I told him that I would not itemize because he would be audited.

He sends me his 2 W-2s...and really straight forward...with nothing to itemize.

All day the wife has been emailing me...

1, We have 2 loans. Sorry...nothing to do with taxes.

2. We went to XXXXX 4 times. Sorry...nothing to do with taxes.

3. I had a baby this year. Sorry...no year of birth bonus.

4. We moved 5 miles. Sorry...it has to be 50 miles and for a new job

5. I gave $118 to my son's school. Sorry...you need $6000 more to itemize.

Finally...an email to her/husband ....I will gladly itemize, but you need to furnish me with a list that comes to at least $6000. In addition , since it will be audited for sure....make sure you have receipts.

I know neither of have job expenses....

Beating my head against the wall. :)

I generally explain that it's a formula. Then I show them. THE TAX. Next I explain that you pay it sooner or later...and point out the withholding . Tax Act has a beautiful prior year comparison chart.

If they are too dense...I tell them go somewhere else...and if that person gets them a better result...based on the same information, I'll refund the fee. So far...never had to give a refund.

I really don't have this problem often, but I learned a trick at an IRS conference ...which I used one time.

To write a letter stating that since your name is on the return as the paid preparer....you will request the IRS to take your name off..which will leave the return more open for audit,

It worked like a charm; I lost the client...but who wants clients that don't pay.

usually when the previous tax preparer has a low fee, there is a reason - and that usually means you get to do some amending.

Usually when there's a high fee on anything but a complicated return...the clients been taken for a ride :)

I live out in the country and want to keep my clients separate from my personal life. I don't even have a Facebook page for that reason. I also have seven employees, and do not socialize with them outside of the office either.

I do very little office work from home, except logging-in to my computer at work when necessary. When I first started, I worked from home while my kids were little. My husband was very happy when I moved the business out and he could just relax without having the extra traffic. It works for us.

Is buying real estate...and you can be your own landlord an option?