tetspa

Here is what we have learned through the years (some of which were spent as an IT person): 1) ALWAYS demo the EXACT software you are going to buy - so that means NEVER pre-paying for a "discount" for "next-years" version. 2) NEVER buy software whose version has a ".00" on it (i.e. 2.00, 3.00, 4.00, etc.). It's ok to buy "2.01" since that version fixes all the bugs discovered in "2.0". 3) TRY to NEVER buy a version that is an even number or has an extension that is an even number (2.02, 2.04). Give preference to Odd number with a non-zero extension (3.03, 3.01, 5.01, etc.) 4) NEVER "upgrade" hardware unless you have tested your existing hardware and it simply will not work with your new program...don't take developer's word that "your hardware / Operation System version is not supported therefore you must upgrade to Windows X or buy a new box". Demo the software on your old box...if the software runs without crashing and works, keep your old box." 5) ALWAYS let someone else "walk point" (i.e. try new software first before you try it). 6) If you do change boxes, keep the old box pugged in and powered on, but not connected to the Internet. It is possible that over the years some Microsoft update will accidentally render old legacy software unusable. (Happened to me with Orrtax). 7) Always have a "plan-B" software (whether it be TaxACT on a ppv or even just TurboTax) so that you can still crank out paper returns if all of a sudden your software "quits" on you. 8) Don't update unless you have to (provider requires it to e-file, or you have the EXACT problem that the update is supposed to fix). As far as specifics on TRX, I agree that only if you can "tell" after the splash page is gone that it is really Taxworks or TRX or Taxwise or someother "legetimite" software would I consider it. But that goes for any software or re-seller, not just TRX.

You're not going to get a refund from TRX. Your choices are simple: stall your clients long enough that (hopefully) enough updates will be ready in time, or 2) buy new software now. Either way you're never seeing a penny of what you paid TRX. Vote with your feet.

So why wouldn't TaxACT be a perfect fit for the 100 client preparer? $ 99 and charge an extra $ 8 on every return to pay the $ 8 e-file fee, or $600 and simply add $ 6 to every return to recoop the cost...this seems WAY too easy??? I can tell you from personal experience that Tax ACT will take you about 10 minutes to learn to use. There may be a few obsucre forms it doesn't support, so I'd get a list of the more unusual forms from your more unusual clients and call them first to very the form is supported. But I used it for years without any problems...in fact, it was such a small program I installed it to a thumb drive and just took the drive with me to clients home and used their computers to do returns (this was before laptops became so cheap).

If not a common-law state, then they are not married. The child could be a qualifying relative (I much prefer the term qualifying non-relative as I think that term is more accurate) but the relationship would be "NONE" and would not qualify for the child tax credit. Cudo's for HRB...most chains would have just filed him as HOH claiming the child as his own.

The problem is not mom and pop independents...the problem is the "preparers" working out of BBQ restaurants and barber shops that use turbo tax and the multiple-account refund spread options to do anything they want on a return, route as much of the refund as they want to their own account, and the return is filed as "self-prepared". Until the IRS mandates that people using turbo tax and such like to physically go to an "authorized" location to show id, and show proof that they in fact own all the accounts they have selected to route the refunds to, fraudulent preparers will continue to practice their trade.

If ultimately the IRS loses on appeal (or chooses not to appeal), then the IRS could still demand anything they wanted as a condition of issuing a valid EFIN#. They could, theoretically, back-door all of this by requiring EFIN holders to get the CE's and pass the test, and also agree "only to transmit returns prepared by preparers who hold PTINS and have passed the exam and obtained the 15 hours of CE credits". That way they are only requiring EFIN holders to agree to whatever they want in exchange for the EFIN. I wonder if the ruling also means the IRS doesn't have the right to enforce "Due Dilligence" requirements on preparers either?

The trend I have seen (and am seeing now) is fewer EZ's, more 1040X's from CP2000 notices on "self-prepared" returns, and a relatively stable # of 1040A's (and by 1040A's I really mean the "EIC-Specials" - W-2's, Kids, and EIC with a sprinkling of unemployment, 1099R, and occasional child-care). As more "kids" do their own, more and more will "accidentally" claim their own exemption (and the ACC credit), jamming up their parents when they file. Now, as far as operations are concerned, more emphasis will need to be placed on the "service" aspects of "tax preparation service" (i.e. hand-holding of clients and calling the IRS to respond to correspondence). More work on the "off-season" with 1040x's and CP2000 notices. More Identity-Theft affidavits. And yes, less of the "low-hanging fruit". But as the CP2000 notices increase, the satisfaction with Turbo-Tax and such-like will go down. More and more people will get "burned" by doing it themselves.

It just says you can file on Jan 22....doesn't say the IRS will process it. Heck, you can come to my office TODAY and I can file your return...it will sit on the server until Jan 30, but you can FILE it today (assuming you don't need any of the forms not released by the IRS yet). There is a SMALL chance that this outfile is one of the "early testers" authorized by the IRS to e-file before Jan 30, but I'd bet lunch this isn't the case.

Time for some ugly truths on this topic: There are some people out there who don't believe we deserve to get paid for preparing a return...that they can do it themselves for free, so the service we provide just isn't worth anything (or not worth much). Then there are the cheapskates, who once a year, get into their car and start driving around looking for "someone to do the return for $ 25 or $ 50 dollars. If they have to spend 10 hours going to 10 different places, they will until "we find someone who will do it for this price"...they see the 10 hours in their car as "the price of doing business". Sites like this attract these types like honey attracts flys. So yes, they will "race to the bottom" and pick the lowest bidder. And yes, they will pull out 1099's and k-1's that they "forgot to mention" out of their pocket at the last minute and expect you to still honor the quoted price. The type of clients you really want (or should want) to have will NOT be found through this type of site. Perhaps one good thing is that it will keep those types busy on the internet and keep them off the phones calling real preparers for quotes. Just my humble opinion.

Possible scenarios and their probable impact (in my opinion): Scenario 1: Lucky unaffected (i.e. returns with AGI below a "magic number" or returns without affected credits/deductions) can be e-filed on opening day, rest will have to wait until Feb or March. Result is some of your workload "shifts" from earlier in the season to March. Impacted clients complain, but nothing you can do. Scenario 2: All returns can be e-filed on opening day, but "affected" returns be essentially "over-taxed" and thus will need to be amended to "get back" the overage (or clients could just wait until the patches are programmed into the IRS). Result is a lot of amended returns which you would probably schedule after Apr 15. Whether to charge extra for the amended returns would be up to you. Scenario 3: EVERYBODY is delayed until February start date. Result is a TON of people flooding the system on opening day and probably lots of IRS crashes and delays (worse than last year's MEF crash and burn). Result is a dead January, and an over-loaded February. Walk-in clients will experience longer waits and may (depending on your type of client base) decide to "go elsewhere where there isn't as much of a wait". The chains will downplay the delays until after the returns are filed (and the clients are past the point-of-no-return, revenue-wise). If your clients are loyal to you, are mostly by pre-arranged appointments, and are willing to tolerate a bit longer-than-unusual wait times, you should be fine. If your client base is more retail walk-in (and thus more "fluid") you may lose business under Scenario 3 to an upstart independent with nobody waiting. The chains will just have a warm body at every desk, so they are probably not as afraid of Scenario 3 as I would be. NOW, depending on your software, and how "pro-active" it is at programming (in other words, will your software be ready with the "probable" fixes ahead-of-time) you could theoretically prepare returns, print 8879's, have clients sign and walk out the door with the understanding that the reutrns are still on "hold" pending final approval of forms for the IRS, then when the IRS publishes the final forms, "error-check" each of the "pre-updated returns" for any changes, then transmit those without changes and call everybody else to come back to "re-sign" the new 8879's. You could mitigate the shifted workflow somewhat...IF your software developer is proactive enough. Bottom line is going to be more work. The big question is do you increase fees to compensate for the extra hours (or extra manpower) to handle it? NOW, my opinion is that the most likely scenario is #1, and also that is the easiest for me to deal with. I haven't made a decision yet as to the possible fee increase and I probably won't decide until I know for sure what will happen.

So people who filed the claims before June 14 either did or will get the credit. People who filed it after June 14 with just a flex-fuel car will not. Any indication as to whether those who got the credit (the people who filed before June 14) will have to repay it back? If the people who filed before June 14 did not have to repay it back, then the lesson would apper to be "hurry up and file before they change their minds". I don't see how the state can say the flex fuel vehicles should NOT get the credit without having to go back and make all the "improperly paid" returns repay the "ill-gotten gains".

What is the latest on this? Has the state stopped paying new claims? Has anybody had to repay their refunds back? What happens if someone submits an amended return today claiming the credit?

And one more thing...Doug Hughes needs to stop needling around and just tell everyone that nobody will get a refund as opposed to this song-and-dance.

I've been following this forum for the past few years, and after reading all of the posts about TRX I have something to say. TRX is a trade association group. You JOIN them (and your payment is for membership) and in return you get membership benefits (in this case whatever software they provide you, whether ATX, RedGear, or "in-house"). In theory under perfect conditions where everything works, you get good software at a huge discount. The downside is that since you are not buying it from the manufacturer, you don't get support from them - you have to get support from TRX. That may be ok, or not, depending on what problems you run into. But it is a calculated risk you take when you join them (and you may in fact be joining them "only" to get the software - nothing wrong with that, but again, it is the risk you take...particularly when you sign up early in the year for next year). Now, TRX should FULLY explain that to everyone when they sign up. It was fairly clear to me when I signed up with them several years ago. Since I haven't been a member of TRX for over 3 years, I can't say whether or not their sales pitch morphed into a "you are pre-paying to buy software" from what used to be "you are paying to become a member and as a benefit you get the software at no additional cost". If it did, then that is TRX's bad. But you are wasting your time, effort, and breath if you think you are going to get a refund. If anybody signs up for TRX, they need to know that they will get "whatever" software they will provide each hear, and it may in fact be different software each year. The only way not to get stuck is to wait until Dec to renew after you have seen the demo of the new software for the year. Ignore the calls to renew early at a discount. And understand the pros and cons of using a third-party arrangement.

I hate to disagree with you, Cathy, but I must. The fact that the Governor has drawn a line in the sign by honoring requests for refunds mailed in before a specific date now puts you in a position of having to explain to your clients that you held off for "why didn't you file when I first brought it up...if you had, I would probably have the $ 3000 in my bank account." Now, someone will have to file a lawsuit against the state to compell them to honor all claims, and it will probably take years. Louisiana will lose in the end and have to pay, but I don't believe you served your client's interests very well. In my opinion you had more than your due dilligence would have demanded on you when you got the first response saying the credit was proper, and you DEFINITELY had enough with the emergency declaration. I would have got every client filed with 24-48 hours after that just to get them on the record. I would have expressed my concerns, but I definitely would have filed the claims. And all of them would have been in "under the wire" before the Governor's "improper" cut-off date. If your clients that missed out (and by "missed out" I really mean missed out on getting the refund timely vs. having to probably now wait years) "understand", then your clients are more "understanding" than I would be. By the way, I would still file the returns now just to avoid any sol issues, even though the Governor has essentially said the state will not honor them now. Years from now when this gets reversed by the courts, you will at least have the claim in before the sol runs out.