Richcpaman

Great job by Ms Tabby!

I would not, and COULD not recommend to a client that they after the fact, send in 28% withholding on a 1099 guy. Sorry. Not going to happen. Have the Taxpayer do the reasonable steps to get the SSN/Address/Name of the 1099 guy before Feb 28th, and then send in the 1099's with the info that you have, and then respond to the IRS notice if it ever comes. Withholding 28% from a check you are about to mail someone for services rendered? Ok. I am good with that. But I would not do it after the fact. The guy got $1,000, send a 1099 for $1,000. Rich

Brings a whole new look to Laundering Money... Rich

Two 27" monitors on my desk, and the Form tabs on the left since at least 2005... Don't like it when the forms list gets so long that you have to keep scrolling down... Be nice if you could hover over the tab and then it opened up all the "sections" under that form number....

It may be 50% or 85% taxable depending on the other income, but the attorney told them NO!!!!!! Then have the attorney pay the tax... Tell them not to pay the tax and send it back to SSA. Also, look into the income averaging that you can use on lump sum SSA disability awards. Rich

Another aspect of the "Digital Divide" Go "on-line" and do it... Except if you don't have a computer, the internet or knowledge... Crazy.

After that 6 year mark, I believe the spouse who left the house, if the house is SOLD, can still use the Sec121 exclusion even if they have not lived in the house for 10 years, as long as they met the use tests at the time of separation and the ex-spouse stays in the house. So, in many respects, no matter what, the tax code tries to minimize the potential tax effects on the moving out spouse. So, even in the above case, if the spouse who moved out is deemed to have "sold" his half interest for $70,500, he could still exclude it. Rich

Transfers "incident" to the divorce are non-taxable. Her buying him out is a non-taxable event and no reporting is required. She does NOT get a step-up in basis for the payment, however. Rich

Arrgh, where's me RUM!

I don't use the Standard client letter. I change all the fonts, rework some of the paragraphs, and change alot of things. So that I can get the cleint letter the way *I* want. That would take two - three hours after I loaded ATX in the past. Last year, I had to manually create the client letters, cutting and pasting in MS Word to get them right. They worked on the Communications Manager this year, but... The questions is: Do I have to go and update EACH workstation's client letter or can I just do it once, at the server and have it appear at all workstations? And If you don't know, that's ok. Cuz, this has nothing to do with preferences... Rich

It seems to me, having a true "server-based" system, that I *should* be able to make changes at the server that would effect all the workstations in the system. Things like the clients letter, that I set up *once* in the past, and that I could print from any computer in my system, and have it look the same.... Not anymore, it seems. That is an additional PITA factor. And I understand about preferences for each login. I like my forms in the tax return, listed on the left, not the across the top. Myu staff may like it different. That selection should be local and according to log in. But having to recreate the client letter at each terminal? And/or other customized master forms like Mailing Slips and Invoices? Come on... Rich

Naveen: If the entity has been in existence for a year or longer, You file the 8832 with the IRS to go from Sole-Prop to Corp. Then the 2553 to get to S-Corp with the IRS. In Maryland, you just continue to file the Maryland Personal Property Report and pay the $300. Doesn't matter, (YET!) to Maryland if you are disregarded entity or Corp. (Used to, but not anymore) Rich

Gee, thanks for all this, ATX. Rich

So To address his question, when I install ATX on my new Server on Wednesday. I have to go to each workstation and post the changes to preferences? I can not just do that at the server terminal? Do I have to recreate my customized client letter at each terminal? ??? Rich

Well... I was going to the Western CPE Financial Advisors week long conference in Las Vegas this past month, but that got interuppted, so, I plan on going to the next one. I might as well get qualified to be a financial planner/advisor, so that I can make some more money... That is my goal for 2014. And to END 2013... Rich

Gene: It doesn't matter on a Visa or MasterCard... For Store cards (Which there are ALOT less than there used to, as noted above, the store branded cards are just V/MC..) If someone charged $10k on a store card, and made payments of only $1,000, then you would deduct $1,000. If it was building supplies, I would expense $1k to CGS. Also... Please note that the IRS rules were changed to state that payments on all Credit cards balances would be applied to personal expenses first, then to business expenses. Therefore, making it much more taxpayer friendly. So, if you have a balance of $5k on a card, charge $100 for something personal, $250 for business expenses, and then send the card a check for $600, it is presumed that you paid down the $100 FIRST, then the business stuff. Rich

I have no idea what the guy down the street charges to prepare a return. And I really do not care. I have an idea what HRB/Liberty/chians charge, and in many respects, it is, and can be, much higher than my fees. But they are doing work I don't want to do, so it doesn't matter. My fees are too low, no matter what, becasue *I* want to make more money. And play more golf... But those fees listed in the first post would be below my averages. The low end for me would be at least $300-325 for a 1040/SchA/MD return. If you are selling a commodity, then you ARE sensitive to what others charge, because your product is no different from the chains/others. I do not sell a commodity. I sell myself, and my knowledge, and that is worth alot more than any of the chains. I happen to be a CPA, and started working for a CPA firm 20 some years ago, then I went to work with a Non-CPA firm, and have been stuck with lower pricing becasue of that... But it has not stopped me from raising my rates since. But if you are in this business, and in it for real, then get your EA, or your new RRTP when it comes back, (and it will!) and charge accordingly. The clients that leave because of cost? In 20 some years of doing this? Not that many in the first place, but most of them? Were gonna go anyway. And are not missed. And don't be afraid, and think that your clientele isn't that economically priviledged, and they can't "afford" it. THAT is not your problem. Rich

This is really the problem. The IRS is having the largest problem not with "Paid" preparers, but with "unpaid" buy the TurboTax box and prepare as many returns as you can until TurboTax quits accepting them from that box, and go buy another one. I'm sorry, the problem isn't in those folks with a PTIN. Its in the folks who DON"T HAVE TO HAVE THEM, and are preparing fraudulent returns. And I am TIRED of being compared to CROOKS. Kim Hawkins can kiss my ass. She needs to use her resources to go against those who are commiting CRIMES, not searching around in my files for a missing birth certificate.... Which, I can tell you, I haven't a single one in my files. /rant off. Rich

Tabby: In this particular case, you are opening yourself up to preparer penalties. The term is "reasonable belief" and it does not appear reasonable to me from the facts that you have presented that the taxpayer is reporting enough income. I would ASK him for verification of "gifts" or other amounts that help cover the mortgage, or SOMETHING that would make sense to ME. Otherwise, his return isn't passing the smell test. I have fired clients for less. You mentioned that the IRS should do some legwork. When they do, they WILL target the taxpayer. But then they will look at what you have done, and then make a decision. If this is the only client that you have like this, then, you have one problem. If you have several that are slippery, then things get tougher for you. As quoted during a seminar, sometimes when we start preparing returns, if the client has a pulse, they are in. Later we can get more selective. That is why some of my clients have gone out the door, never to return. Please be careful. Rich

PaCun: You stated this: "how about the ones that only get $5 as EIC? If you prepare 600 of those claims, you are not likely to be checked by the IRS, but if you prepare 600 returns with $4000 EIC claims on each return, you are likely to be questioned." Do not, for an instant, presume that the IRS is doing this. That is what makes all of this so stupid. We an go around and around on this forum, and the real problem isn't with anyone who posts on this forum, or ones like them. Sure, some of us might be "lucky" enough to catch a field audit on our EITC filed returns proceures... But I doubt if any of us would end up having our business's closed down... You just look at the IRS's own PR about shutting down fraudulent preparer's... They are about two-three years behind, and never catching up. All this impacts those of us who are compliant and trying to stay with in the rules, but it is effort wasted. Rich

Well, I am about to submit an OIC. I like what Max has to say.... Want to keep the tax debt inthe entity, and not out to the person. Merry Christmas All! Rich

Will there not have to be an "Extenders" bill? Rich

So.... I can print organiziers from ATX2012, but it does not print anything except the organizer pages and cover/Mailing sheet? I have to create a seperate set of Engagement letters and client letters with appointments? Ouch. How long does it take to print an organizier? In years past is took about 1 minute each... I would set ATX to add and print 15 organiziers, and about 15 minutes later they were done. Still about the same? RIch

The government is responsible for raising your rates. Congress is changing the laws. The IRS is interpeting them differently. The IRS wants to regulate us even further, even though *We* are not the problem... The states require us to do more training, CPE, due diligence. Your quote via email to your clients is: "Just as no two people are exactly alike, including identical twins, no two tax returns are the same. My fee is based on a combination of data to input that I am given by you, forms that will be generated and time needed to prepare your tax return. This year the IRS has imposed new regulations, and in order to avoid “potential issues” I will be spending more time doing “due diligence” on every return." My engagement letter was much simpler, I simply stated "Due to increased costs, each return was going to increase by $25 for next year." Simple and to the point, if clients had an issue, there wasn't much wiggle room for then... That would be my recommendation to you. Leave little room for interpetation. "My fee for tax preparation services is based on a combination of factors, including the complexity of the return, how the information is provided and how long it takes me to complete the return for delivery. Due to the increased "due diligence" requirements of the IRS and State of New York, every return is going to take longer to complete, and therefore, a minimum of a 10% increase in fees is required. " That way, you can increase everyone 10%, discount that for some, and increase even more for some others... And I would not send out just something that has the fee increase quote in it. It would be part of the organizier letter, the engagement letter, or the year end reminder letter. Whether sent via email, or snail mail, it it just part of business. Rich

Something interesting in Quickbooks. I used to run 2008/2010 but I am now in Ver 2012. I have a report, with all my sales, by customer, by year. In 2008/10, the report was alphabetical. In 2012, any new clients that I have added since moving to 2012 version, now show up at the top of the report.... They do not sort alphabetically. Anyone else see this? I can go over to Qbooks, but that can be PITA asking/searching over there. And I was just wondering... Rich