Catherine

Got a call today from a lady who just wanted me to do her Schedule C; her husband doesn't want to pay for me to do Schedule D (he day-trades; it would be pricey). Told her sorry, don't do that in my practice. That did feel nice. There's another one (a brand-new referral) who has already caused me far more trouble than she'd be worth if I charged her 10x more. Since her return is 98% finished, I'll give her the boot afterward - she should have plenty of time to find a new sucker (um, preparer) before next year.

Jack -- here in the People's Republic of Massachusetts, any email that might have confidential data is _required_ to be encrypted. So I can't send anything to clients by email that isn't generic. I get lots of use out of my file share site... There is a program called PGP Encryption that will encrypt your hard drive and secure your email as well. Acrobat also works well and I bought my brand-new, fully-registerable copy of the one-prior version for very small money on eBay.

@bert73 -- Does that mean we can sign up with Square and use our _clients'_ smartphones to get paid? I do not have a smartphone and don't want one because of the additional data plan charge. I have a PayPal button on my site that 2 - 3 people per year take advantage of. I have a Square that was sent here - but never did anything about signing up since my phone doesn't send data. If I can use my clients' phones, I may investigate... Thanks, Catherine

In a profession where being able to hit what you are aiming at can be a matter of life or death for both you and your clients, I would say that target practice (unless he states it is personal, with those firearms) could also be considered business as well. Every firearm handles differently, feels differently, recoils differently, sights-in differently - and those differences are greater with the higher calibers needed to stop large predators. Hitting a moving target (like an angry bear) that must be hit in the right place (head!) with ONE shot (because there may well not be time for two!), requires excellent proficiency and familiarity with _whatever_ firearm he might have with him at the time. That would NOT be the time to have to remember "this one recoils fast up and left, so I need to hold a little down and right to hit center". His response must be automatic; therefore he must practice, with every firearm he takes out in the Maine woods.

Almost-congratulations, Joan!

The payments are labelled "Holiday Cheer" (and are only to vendors, not employees - read 'em the riot act about that topic a couple years ago - this is the first year I've seen bonuses to vendors). On the 1099 they go. Vendors can separate for themselves what goes on Sch C and what goes on Line 21. Thanks for confirming

Business client gave me their info for W-2s and 1099s. Several of the 1099 vendors got small ($25) end of year "thank you" gifts, NOT for services rendered. All other payments to these vendors were properly invoiced for whatever - cleaning, snow removal, plumbing repairs, etc. Should those small amounts be included in the 1099s in Box 7? I know the vendors have to report it as income, but wouldn't this be Line 21 "other income" rather than Schedule C self-employment income? TIA, Catherine

Congratulations, JB!! I'm still hoping to lose the last 10 pounds I gained when expecting Gwen (who is now a college freshman). Nothing seems to make a difference - including biking miles every day culminating in my Idaho trip a couple summers ago. Daily training for months and then the trip itself; didn't lose a pound. Sigh. Was in great shape, though! Haven't lost much of that although in winter I switch to contra dancing.

I will not be _filing_ those POA's unless they're needed -- and they will be for Tax Year 2011, for Income tax only. I simply have too many clients for whom access to a fax machine (or in some cases even a computer with a working printer!) is difficult. Last year there were several clients who had issues (NOT audits) that cropped up before the return was processed. 3rd party designee line is the -last- item they note, so if the return hasn't been fully processed, I am not YET the 3rd party designee; no one is. So I need POA to answer inquiries. This year with the new Schedule D and associated forms (8-whatever) I expect numerous letters that will be easier to answer if I can get hold of info on e-services. For that, I need POA. Simple enough. Audits etc. are certainly under a separate agreement.

@Joan -- have you been to your doctor? If you're happier, less stressed, and have work lined up, then the lack of energy isn't right. Keep us posted. Catherine

Massachusetts amended returns go best when you drown them in paper. If you send in the CA-6 alone (which is, as Jack notes, the amendment form -- for ALL Mass. returns), the first thing you'll get back is a notice asking for supporting documentation. I have always sent in the CA-6, followed by a new Form 1, marked across the top "As Amended" and with highlighter to call attention. I also append a copy of the original Form 1, marked and highlighted across the top "As Originally Filed". With all that paperwork, the amendment goes through smoothly. It also means that you can use the "changed" line items on the CA-6 just for the crucial items (of which one is always "total tax"). Catherine

Mine officially started a week ago, when the inquiry calls and "hey, this happened last year what will you need that's different" emails started coming in, and the businesses started sending info for W-2s and 1099s. I am -so- not ready for this.

This year I will be getting signed POA's from -all- my clients when I get initial paperwork from them. Several times this past year I've had clients get weird IRS letters before the returns were processed -- and all the "third party designee" boxes in the world count for NOTHING until the return is processed.

I think this one depends on state law. If he was buying and then selling to sellers who would charge sales tax, then there's no issue; sales tax gets collected on sale to consumer. Selling to tax-exempt entities opens a whole new can of worms. Even TE-ent's have to charge, collect, and remit sales tax if they're selling items to raise funds (the support group that sells books and CDs to raise funds, etc.). If they use items (and don't re-sell them), then you have to look at what the state involved wants. Does the state involved have a sales and use tax department that you could call and ask for information (referral to state docs/guidelines)? The cross-border issue comes in, I should think, only when looking at possible customs duties on importation. Catherine

I've been using a program just bought out by Drake this year; it's called GruntWorx. They take your scanned file and index it; one-click access to W-2's, 1099's (by type), etc. Just this year they are marketing it with an Adobe add-on for accountants called "Tic, Tie, and Calculate" which adds the ability to repaginate, add-in late-received forms, re-name, run "paper tape" calculations right on the pdf page, put check-marks next to items completed -- I got the trial version and really liked that so I've ordered a license. GruntWorx info: http://copanion.com/ Tic, Tie, and Calculate info: http://cpaperless.com/ Please note that there is a special discounted price (about $25 off the license or something like that) on TTC for GruntWorx users so if you might want both, talk to GruntWorx and get your discount!

Ditto with good luck from Tenenz. CFS (taxtools dot com) also has envelopes etc., as do several other places. Prices seem pretty competitive. For return mailing envelopes, though, I usually just get plain-Jane Tyvek envelopes -- or use Priority Mail flat-rate envelopes. The small premium I pay for Priority Mail is far less than the bother of going to the post office to send first-class items that weigh over 13 oz.

Sorry to be chiming in on this late - hope my comments are still useful. Word of mouth definitely -- but that works best once your practice has built up a bit. For tax work, the only "outside" advertising I've done that has worked has been a small ad in the local community paper. Every year they have a small section that runs once a month for tax prep. That garnered me 4 - 5 clients a year (who then started sending their friends and relatives to me). I stopped it last year because I had a full calendar. They run the ads Jan-Apr but I always skipped the April edition as I do not _want_ clients who don't think of taxes until April 10th! For good clients, I offer a "new client referral" discount of a whopping $25 (applied the subsequent year if they've already come and gone this year) for each new referral; limit three per year (more than that - which has happened once or twice - gets carried over as well). For accounting clients (and also some tax clients!) I have had excellent results from bookkeepinghelp.com, run by Jim & Cheryl Berry. They optimize the search engine stuff, you get to say what you do, where you work, specialties -- everything. Almost everyone who finds me by internet search finds me through them. Cheap (about $200/year - less than I was paying for three ads in the local paper), great personal service, nice folks. You can see my ad by going to their home page and putting in zip code 02421; limit to 10 miles radius. I show up as one of the top on the list. Don't disregard other professional referrals as well. There are plenty of CPA firms that do _not_ do taxes, and plenty of CPA firms that will do taxes but don't want to do day-to-day accounting/bookkeeping for their clients. A local CPA found me through bookkeepinghelp.com and sent me several really terrific accounting/bookkeeping clients. Financial advisers will sometimes send clients your way, too, as long as you are willing to send them back. I give folks who inquire a list of 4 or 6 advisers and tell them to talk to them all. A couple of those advisers have also sent tax (and tax planning) clients my way. Good luck! Catherine

I keep renewing because I have clients who use different versions (editions, not just years) and I'm able to see just what they see. That way I can talk them through things if they call me (which I've mostly trained them to do). I keep re-evaluating every year as well and it keeps getting closer and closer to "forget it!". This year Sage has been calling me to become part of their "Sage Accountant Network" -- but I get plenty of Sage business (Peachtree, Business Works, and MAS-series) with it -- and I never found their support to be worth beans. Picked up a new, unregistered copy of Peachtree ProAccounting 2009 on ebay for very small money several months ago just to familiarize myself with the newer formatting (my old version was 2002 or something like that). That, plus an old hard copy of a Business Works manual does me fine. I'm sure QB would be the same should I decide to bail on the program. Maybe next year....

Merry Christmas to everyone (and Happy Hanukah, and Happy New Year) on this board. It is always a pleasure and an honor to meet my dear ATX Community Forum friends here throughout the year. I am grateful for all of you and hope we all have a very excellent tax season in 2012. Catherine :wub:

Beautifully done and -amazing- to watch. https://www.youtube.com/watch?v=QdoTdG_VNV4&feature=player_embedded

MF Global collapsed a few weeks ago, sending the commodities brokerage world into a tizzy and outing John Corzine as a crook to make Bernie Madoff look like a rank beginner. “So what? I don't invest in cattle futures,” You may say. However, there is potential for a big problem facing us. I’ve been following the repercussions of the MF Global fiasco. One of the blogs I read is by the founder of a small, independent commodities brokerage. A week or so after the MF Global implosion, this writer announced on her blog that she had closed her firm, as she could no longer guarantee to her clients that their monies and positions were safe in the futures and options markets, due to the large-corporation use of supposedly-segregated customer funds in serially re-hypothecated “investments” in European sovereign debt. I took this with a small boulder of salt; this blogger is very knowledgeable, educational, and entertaining - but she also tends to be dramatic. However, late last week I came across serious analytical articles from other sources (including Thomson Reuters; hardly a “scandal rag” – ref’s below). The gist of it is that this multiple re-hypothecation greatly increases the exposure of US BANKS to a liquidity crisis precipitated by Eurozone sovereign defaults. The extent is _potentially_ catastrophic. Yesterday (Dec 13), at the annual UMass Tax Update Seminar, I took the opportunity to speak on this issue with a senior VP at Salem Bank. I asked if the banking industry was worried about a liquidity crisis catalyzed by the MF Global fiasco. The response? No, they’re not “worried about it” – they expect it. There’s no way around it, it’s just a matter of timing. They also expect that the FDIC will turn on the printing presses to “make whole” the customers whose money disappears, and this VP stated that money-printing in the required quantities would lead directly to strong inflation. I asked specifically about the safety of customer funds in smaller banks and was told that community banks, mutual banks, and credit unions are NOT allowed to make these kinds of investments. People whose funds are in these types of banks will see much less impact on their operating cash accounts than those whose funds are in big banks. Bottom line: some kind of serious banking trouble is coming; heaven only knows when (immediately, soon, mid-2012, other?). Likely interruption in bank service of unknown extent or duration. Inflation. Potential implosion/collapse of large commercial banks. What to do: that is completely up to you. Read the articles linked below and decide (plus new ones that just came out this week; the ones I've linked are from last week). Prudence would recommend that at least get some of your money into a small community or mutual bank, or credit union. Also, prudence would dictate that you have a stash of cash in case we see a disruption in ATM & credit clearing house service of a couple of days. Some people may want to add silver or gold to their holdings as a hedge against inflation; one could stock up on non-perishable foods/required medicines in case there are disruptions in shipping and trucking; or take other precautionary measures that make sense for you and your family. Whether or not to inform/warn your clients is also up to you. This is NOT a time for panic or fear (which would work against you in any event). With great good fortune, we can look back a year from now and laugh about our concerns and how silly we were. If the problem manifests but turns out to be small, you can then put your cash stash back in the bank (it's not like you would have earned any interest worth counting in the meantime) and know that you were prepared. http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/ http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-apocalyptic-consequences-eurozone-canadian-banks-jeffe http://market-ticker.org/akcs-www?post=198790 My best to you all, Catherine Ezekiel 33:6 “But if the watchman sees the enemy coming and does not sound the alarm to warn the people, he is responsible for their captivity. They will die in their sins, but I will hold the watchman responsible for their deaths.” (NLT)

CPA Site Solutions had no setup fee. ATX/CCH did but if I recall properly it wasn't too much - and that may have changed in the intervening years.

It's actually really hard to do an NOL _without_ your eyes glazing over!

Got my Master Tax Guide today in the mail.