easytax

Agreed on numbers with one explanation (I used "Tax Policies Calculator" at: http://taxpolicycenter.org/taxfacts/acacalculator.cfm ). Not stated but assumed to get the answer we received: Family was considered married filing jointly. Should all the "household" income have been from other than "married filing joint" (still with dependents, kids, etc.) the numbers do change. Thanks for question as I had "forgotten" about the penalty aspect (current clients ALL have insurance) but it now "easy" to find/look-up for new ones that do not have insurance, etc. .

Tom, Would you like to make an excel sheet for those computations (from your article posting) --- maybe you could sell it and retire from the actual tax prep side? However remember me with a no-cost copy ; since you can retire on a suggested idea. Have a GREAT Season --- it will be fun --- especially if you have a lot like this scenario.

JACK --- Congratulations! Not just for the EA (which in itself is more than warranted -- but -- also for your perseverance and willingness to help others with your knowledge. THANKS! On another post --- JACK stated: My journey has been three and a half years. Took all three tests at once, Feb. 2010. Passed #1 & #3, failed #2. Over the next 2 years I took #2 three additional times and failed all three. By this time, the time had expired on #1 & #3, so I had to start over. Test# 1 - Individuals Test# 2 - Businesses Test# 3 - Representation, Practices and Procedures. July 2012 I purchased the Gleim study course for businesses (#2). Lots of seminars, IRS forums etc., and I felt ready to take #2. My plan was to be sure I passed #2 before I took tests #1 & #3. There is an audio study portion of that program. I downloaded them, burned them on CD's and for a year listened as I was driving. 30 minutes each way to work, and anywhere else I went by myself. Their study program is also very good because it will create simulated tests. When you take the test, you can see what the correct answer is, but more importantly, it explains why the answer is correct as well as telling you why the other answers are wrong. Dec. 29, 2014 I took and passed Test# 2. I asked the fellow at Prometric 3 times if he was kidding me. He smiles and handed me the paper with proof. Jan. 2, 2015 I took the other two tests. Passed them both. I knew I would have no problems with #1 & #3 because those relate to the largest part of my experience.

Your smiley's are good. From your posts, no one takes offense, you do not seem like that kind of person, just one who tries to help and clarify. One thing I have found with the ACA reporting, etc. is that ---yes--- there is a lot to look at but overall if you THINK, follow the forms and have a decent understanding of the basics; things will work out. If we "over think", we just make more worry and work for ourselves. ------- Kind of like hearing someone you know went to the hospital ---- your mind comes up with all kinds (many worst scenerios) but then you find out --- yes --- they went to the hospital --- to visit the sick kids, shut-ins, etc.. All that worry for nothing --- brought on by just "over thinking" --- without the final facts. Keep enjoying and HAPPY TAX SEASON !

Some POSSIBLE answers to share with those clients (or maybe just to ease the pain):

Here is an example of a "possible" sign for the office or mailings, etc.: For examples of possible "questionnaire" items, visit : http://accountants.intuit.com/affordable-care-act/index.jsp?_requestid=18303 Yes, they are somewhat of a competitor but there are some good answers to your question there.

Basically by leaving the "secretarial" option for them to pay me I avoid any licensing concerns (I am looking at this similar to "unauthorized practice of law" - if it was a legal question) as I am filling out the exemption request papers at their guidance and not as anything else than a "keyboard operator". CALL ME PARANOID - but I want to protect myself from any liability whereas the challenge would be to my expertise (tax, I know (insurance I know too but gave up that license) but tax is what I am doing - NOT insurance). Unfortunately in todays society --- perception by/from client is what gets you into court and I want to CLARIFY the perception in my favor. With upfront clarification (understanding on both sides) it helps keep honest people honest. Just like a lock on a door keeps a basically "honest" person - honest. Eliminate the misunderstanding/opportunity to misunderstand as much as possible and you will have fewer misunderstanding. Sorry for being wordy --- I have strong feelings like this because basically the "UPL" (unauthorized practice law); to me is the legal profession protecting more business for themselves under the guise of "protecting" the consumer. (THIS NOT MEANT TO BE POLITICAL) -- it is like government sticking their nose into everything when they really only need to be be/should be into the original things our founding fathers wanted the government limited to. My opinion can be construed as "UPL" in many circumstances by me sharing it and being paid for my time or knowledge (and might be stated the same as an attorney) by since I am not an attorney, I would be in trouble. Again, sorry for wordy --- long way to explain why even resemblance of "insurance licensing" "opinions, etc. are what I stay away from. There are courts where we the people cannot represent ourselves or if certain entities in business, MUST have an attorney, etc.. It adds cost and confusion where it does not need to be. RANT over (for now). Enjoy the tax season.

I will point any of my clients to where they can find/do these exemptions BUT in PA, insurance requires a license and I am a "tax practitioner" not an insurance agent -- my belief is I can point but cannot "do" fro them (outside of being their fingers on a keyboard). If they hire me to do the "paperwork"; I must bill accordingly as a "secretarial" type person --- of which my secretarial fee may start at $100.00 an hour). It may be callous but taxes are one thing while the insurance (or exemptions) are a totally different matter. (FULL disclosure --- all my current clients are done and ready as far as "ACA").

You are over thinking. They either are or are not a dependent. If she gave the exemption away then there is no dependency to process --- if she took the "credit" based on the dependency, she will owe money back. If the teenager moves out and is not a dependent, ---- se where I am going. Do NOT over think, the dollars fall where they may. If they took too much credit, they are going to have to pay it back, etc. and vice versa. /s Have faith in our tax system, that they have all these covered to help us do it the easiest way possible.

Unfortunately many potential "clients" see the advertising ---- get a $50 Wal-Mart gift card when we do your taxes --- or see the "come in and receive (pick many things) for using our service OR let us give you a FREE "ACA" info/quote ---- pick whatever you like --- the "people" totally miss the concept that someone (THEM) is paying for these things. I try to do the "right" thing and make sure my clients know up front what we are doing, why and what the cost might be. Unfortunately not all the avertisting "hype" is transparent to those just looking for their next "free" thing. It's almost like "say anything" if it sounds good -- they will come. That is how I see the "big" guys getting away with their higher fees --- the clients don't know (or realize) until they are in the 'bucket" so to speak, so they pay a LOT MORE for maybe less expertise.

JKLCPA, You are basically correct and without going into UPL (unauthorized practice of law) I share the following information and possibilities: Typically the "Articles of Org, etc." are public documents and are used by the state entities to "track/register" the operation. Many states use what is called an 'operating agreement" that usually is NOT filed with the state and can be (usually is) a private document that is NOT-public. This "operating agreement" typically states the desired plans/set up of the LLC (such as if it is a single member controlled, partnership controlled, etc.). Therefore the intent and desires of the couple is what counts here. Did the two people want to be a "dis-regarded entity (sole pro) or did the want to be a partnership (two or more) or as you know a corporation. Your statement that the "intent" of the parties is RIGHT ON, as long as they did not either knowingly or Unknowingly make the wrong statements in the "operating agreement" (NOTE: some states call it something else other than an "operating statement" --- but --- the "operating statement" is different and totally separate from the "Articles of Org., etc.".

Here are two companies that do it for you: http://www.eagleviewfiling.com/services https://www.efilemyforms.com/ Take your pick or do it the old fashioned way (manually and mail yourself). Have a good season.

Be straight forward and stay away from "flowery" niceness. A simple, commnet about after meeting with you and our discussions, I find we would not be suitable for each other. The more you say, the more (if they wanted to) would leave room for them to challenge you and make YOU LIABLE for "whatever". There is a reason police take statements --- so they can tear apart the statement giver -- if they deem it "needful" to pursue the case. Short, concise and be done.

WITAXLADY, Brother is my preferred way to go. Please see the discussion on printers from this forum: (sorry I do not know how to "point" to the discussion but here is the URL when I got to that page). OfficeJet's are nice but I believe cost with inks, etc. can be a lot more than lazer (again, old info maybe; I have not done a price comparison (cost and years supplies, etc.) between the two for a couple of years, but laser did beat inkjets and officejets by a lot at the time). Hope this helps.

According to the 8965 instructions and form, one worksheet should cover up to six family members (you just list each in the proper section of the form worksheet). No mention of -- what if there are more than the six (at least --- not at this time --- changes happen). Also, possibly if the number is above six ---- then the amount MIGHT (just a gust/thought - do not remember where I pulled this from in my brain) take you into the "flat dollar" penalty,,, errr,,, "tax" amount and numbers would be irrelevant. Only one Form 8965 should be filed for each tax household. If you can be claimed as a dependent by another taxpayer, you do not need to file Form 8965 and do not owe a shared responsibility payment. http://www.irs.gov/pub/irs-pdf/i8965.pdf

I agree withal the above. For a "BRAND NEW" client I will review (for free) several years previously filed - completed returns but if they need amended or "filed" it is standard cost. I have had several non-clients wanting me to check their work; and two clients who wanted me to "check" their NEW preparer (new guy gave a GREAT price but...). All were told I would happily check the work --- at the same price I would normally "do" their tax return preparation as the same work was involved in checking as was involved in "doing" original return. Several walked away, one of my "old" clients said OK and did leave me for the "new guy", one client said OK and understood why the charge from the "new guy" was so low and came back to me. If they want a "calculation check" with just numbers entered - perhaps a slightly less cost as it is just imputing numbers *** BUT *** if they want an opinion or anything other than a number check, why would I do that for less than normal fee? Bottom line ---- time and effort and our cost to do does NOT change if we are "checking" or "doing" the tax return - so fees stay the same. Your choice, what is your time, expertise and more importantly your reputation worth?

Tom, cbslee, Was Tom thinking that there was "deferred interest" - payable in say 2012? I ask, because I do not know if that would be OK. Would interest incurred BUT deferred to be payable later be allowed? or would the imputed interest "kick-in" as far as the IRS is concerned. Inquiring (confused as to tax effects) minds want to know? Thanks.

jklcpa, THANKS! Just registered. If this is similar to one the FLA group gave it is well worthwhile. Also, given it will be in January, we should be given the "latest" information. Again, Thanks for sharing.

All new clients as the main ones I have ALL are fully covered (YEA !) and we have had discussions on "should ANYTHING CHANGE" call me immediately. Therefore, just a preemptive strike to try to help those that do not know. Additionally, may help with generating some new clients. Point taken about wordy and using bullet points (I will be revising my letter.). Also, most of my clients do not open my communications (letters), so I call for important things. BUT --- have to try --- I am "anal". Thanks.

I received the following email and have several questions and comments. Please note; I know nothing of this company and am asking just about concepts, etc. When we say $19.95 / month, we mean $19.95 / month. No Pay-Per-Return Costs – No Annual Commitment MyTaxPrepOffice is a new online tax software company for tax professionals. Our online software brings you all the benefits of the cloud, no installation hassles, no need to back-up your tax software because we do it for you, access to your client returns wherever you are; all you need is a browser and an internet connection. In addition to working on Windows, Linux, and Mac; MyTaxPrepOffice will work on tablets hosting a supported browser. Because we’re an online software company, it only makes sense to offer customers a monthly subscription. Here’s what you get for $19.95 / month ✓ 1040 Individual ✓ All State Individual Returns ✓ 1,000+ Forms for Individual Tax Returns ✓ No limits on the number of State Returns ✓ No additional costs for clients with multiple State Returns ✓ Document Manager and estimated space to store 20,000 documents ✓ Office Notes to improve communication between clients and staff ✓ Business Returns available as a separate subscription ✓ No More Renewal Letters Announcing a Price Increase The MyTaxPrepOffice Price Guarantee is simple, keep your subscription active and it remains $ 19.95 / month. This means no surprises in the mail after tax season. You can breeze through the summer knowing what you’ll pay. Say goodbye to renewal letters by subscribing to: www.MyTaxPrepOffice.com Try MyTaxPrepOffice Now No credit card - No commitment Has anyone else seen this offering? Has anyone tried this? Would there not be some client confidentially allowing data that you no longer control to be "out there (cloud)? I do NOT like "the cloud" as this is simply a replay from decades earlier where the "push" was to use off site units (same as cloud really) instead of having your data under your control. Yes there are some good things (easier maintenance, back-up if need be, etc. all the usual things) but having the possibility of being cut-off from my data scares the bejesus out of me. I can assure I have my data by doing a bit more work without trusting an entity "in the cloud". More work, YES; feeling secure === PRICELESS! Just checking to see if I am totally a fossil or if my beliefs are still sane.

Next year will not be check the box as more forms will be required (just not for the 2014 filing). That will help as entry and figuring them out will be time consuming.

Couple of possibilities --- If you do not populate the preparers and/or ERO before you rollover last years clients, etc. you will have to add the "preparer and ERO" individually to each tax return that was rolled over. To add the preparers before the rollover, under the return manager tab go to the "Preparer/ERO" icon, click icon and then at the bottom of the box that comes up, use add new. Hopefully you only have a few to add. If you do not have any entries in the "Preparer/ERO" section when you rollover last years clients, you may have to individually add to the return; the preparer, etc. for each return rolled over. Not as bad as it sounds as you simply set the "Preparer/ERO" up as described above and then it is a three click process to add to an existing return. Possibly when initially rolling over the returns from last year, you could simply check the boxes at the bottom of the rollover manager page -- one of which is "preparers" . I missed that on my initial rollover and had to do the individual -- Add -- for preparer/ERO but by clicking the "preparer" box BEFORE the rollover. it MAY help you prevent that. To be safe, I would populate under the "Return Manager" tab, the "preparer/ERO" icon before I rolled anything over. Hope this helps.

Here is a PDF of a supplemental ACA instruction document I am thinking about giving my clients (my practice is almost all 1040 with few sch C, etc.) . Please review and comment. I want to make sure all bases are covered so the clients have all they need when sending their documents, etc. If I have missed something or the wording is vague or wrong, please share your ideas, etc.. Given that with the proper information the ACA (as I understand it) is time consuming unless there was full year coverage --- BUT --- if we have "what we need", time can be greatly lessened. With that in mind, I am thinking of giving the supplemental document out in hopes that the client will MAKE SURE they have most of the ACA documents they might need and supply them to me right away. Again, this is first blush - so any/all help is appreciated. ACA supplemental form 2 120214.pdf

Loaded from web site a few days ago, loaded well with one server error on initial load (did this on each computer - same thing) and had to restart program -- then all was fine. Roll overs all did well (except for forms not available). Timing seemed a tad slow but contributed that to looking for forms not there but will roll over when available. "Played" with several return (all mine are 1040, some sch c, investments, etc. nothing BIG business wise). and everything seemed to go properly. I am running 2 systems (both stand alone --- I like to be prepared) both win 7 home, all above minimum (one computer processor is AMD (other Intel) - so except for that - exceeds top spec's). Using "Norton 360" for security and no problems (was looking at Zone Alarm --- but will rethink - from above comments). With Zone Alarm, was it just the install that needed something else and Zone Alarm does not effect "normal" activity or is Zone Alarm totally unworkable for ATX? Filed CD they sent and did all from web site download (same basic time as you have to update CD load immediately anyway). Looking forward to a good season --- except for 3115 (not a worry to me) and of course ACA fun and games. Have a GREAT season .

ACA Penalty calculator (for tax years 2014, 2015, and 2016) &&&& Best Practices for practitioners 112614 ACA Penalty calculator (for tax years 2014, 2015, and 2016) There is also a nice drop down for certain groups that are exempt from penalties ... This website includes a calculator for ACA penalties. You input minimal return information for an estimated penalty amount. http://taxpolicycenter.org/taxfacts/acacalculator.cfm The IRS posted two documents to IRS.gov that discuss best practices for ACA Premium tax credit and ACA shared responsibility cut and paste these links below to your browser to load the PDF documents Shared Responsibility: http://www.irs.gov/pub/irs-utl/Best%20Practices%205000A.pdf Premium Tax Credit: http://www.irs.gov/pub/irs-utl/Best%20Practices%2036B.pdf Both pieces of information courtesy of (from the other site) Stephanie B, CCH SFS Customer Care