HV Ken

It is not CCHSFS, just leveraging a relationship they have with another company iTransact. Do you not take advantage of the Staples discounts either for the same reason??

Rather than Square, why not take advantage of the CCHSFS relationship with iTransact? They also have a smart phone reader and I would guess you can get a better rate on the same functionality.

The 8/28 ATX Account Bulletin covered this. I was told they announced additional November dates in the Sept bulletin, but I appear to not have received that one. I have the August and October ones. Go figure! Sorting through the Affordable Care Act Your clients are relying on you to answer questions like: • Do I qualify for the new Premium Tax Credit? • Am I exempt? • Am I meeting the requirements of the new law? Be your clients' hero with our Health Care Reform Library. You'll have access to a one-stop, comprehensive solution with explanations, analysis, client letters, decision trees, and other practice aids. Learn More NEW ACA Webinar dates added Be prepared to advise your clients' on the myriad of compliance issues under this complex law. Two new webinars have been added to our upcoming schedule: Affordable Care Act: Understanding the Individual and Employer Mandates Friday, Sept. 26 at 1 p.m. Eastern Learn More Affordable Care Act: Understanding and Avoiding the New Tax Penalties Wednesday, Sept. 10 at 1 p.m. Eastern Learn More

Judy - thanks for the additional links. In discussions I have had with CPAs, the Circular 230 requirements seem like a grey area to them and they contend that the depreciation schedules are their work papers. The additional links (especially for NY) will hopefully help my new client to obtain these records. Appreciate your comments!

Picked up a new client for bookkeeping & tax. None of the assets are recorded in the QuickBooks file. CPA did not include the depreciation summary with the tax return copy and refuses to provide it to client (client is paid in full). Has anyone come up with a way to "persuade" previous CPA to provide this detail? Isn't CPA under Circular 230 and AICPA obligation to provide this? Anyone have a letter they use for this? Thanks!

Depending on your volume of activity, there is a break even point comparing square to having a credit card machine, as the fees for square are higher. Typically it is around $1500/month. ATX users have access to an arrangement for reduced fees with iTransact for credit card processing.

From NATP: The IRS is sending two types of emails to certain return preparers over the next few days. The first email is a Pre-Season Login Notice. It will be sent to people who have had log-in problems for multiple years. The email encourages them to locate or reset their password now in preparation for the upcoming PTIN renewal season. There will be approximately 7,000 recipients of this message. The second email is an Early Filer Renewal Notice, which the IRS is sending to people who renewed during the first two weeks of renewal season during each of the past two years. It advises them that they may renew early between October 6-12. This message will go to approximately 40,000 PTIN holders. Both of these efforts are attempts to decrease stress on the PTIN system and callsite when the IRS opens renewal season for everyone on October 16. Please note that the PTIN system will be down on October 13-15 for updates while the IRS prepares for renewal season. On October 16, the IRS will begin emailing notifications to everyone to let them know PTIN renewal season is open.

Interesting point Michael. In the other post I made where the client's S election was not accepted for 2014, the IRS reply included the following text: We'd also like to take this opportunity to remind you of your tax obligations for the payment of compensation to shareholder-employees of S corporations. When a shareholder-employee of an S corporation provides services to the S corporation, the S corporation must reasonably compensate the shareholder-employee. This compensation is subject to employment taxes. The IRS may re-characterize distributions as salary. This position has been supported by Revenue Ruling 74-44 and in numerous court decisions. So if the IRS can retroactively convert distributions to payroll, why would an accountant proactively doing this be considered conducting a fraudulent practice as Jack contends? It would seem the preparer should get a look at the books (not just the printed reports) before considering this approach.

Other than the payroll being filed late, how would they know this was "retroactive" vs. late? For example Owner used payroll company in 2012 and decided to cancel for 2013 and do it themselves (they are cheap!), but they didn't realize they need to file 940x (and state) returns, etc. They get notices from IRS (or state) about forms expected but not filed, come to an accountant crying "help" and accountant gathers the data from owner and files the forms late (in 2014). vs. File "retroactive" payroll numbers in 2014 for 2013. Won't these two very different courses of action look the same?

Was in a conversation with another preparer about a new S-Corp client s/he picked up (after deadline, on extension). That particular discussion relates to Scenario 1, and also made me think about Scenario 2. In both scenarios, S-Corp is single shareholder and no payroll in 2013. Scenario 1: Client had a very good year and should have been on payroll. Scenario 2: Client's only income is via S-Corp K-1 and is low enough that if client had any earned income (i.e. W-2), client would qualify for EIC. Has anyone ever filed a "retroactive" (late) payroll in either of these cases (just for 4q, for example)? Assume client is fine with late filing penalties, etc. Not something I have ever thought about, but other preparer was floating this idea. Note - while it is certainly interesting to hear of other tax strategies (feel free to share as well) you may use in either scenario - I am curious on people's thoughts, reactions, risks, exposures, etc. to this particular idea. Thanks!

Had a client file a Form 2553 to elect to be treated as an S-Corp. Client waited and filed the form after 3/15. IRS denied the election for 2014 and is recognizing the election beginning 1/1/15. Client really wants/needs this to be for 1/1/14. The IRS response says that the 2553 can be submitted pursuant to rev. proc. 2013-30 with a statement explaining reasonable cause for filing late. Are there any suggestions on how to word this explanation such that it will be accepted for 1/1/14 consideration? Thanks!

This isn't going to help reduce the long wait times.... See: http://tinyurl.com/m7wtefb

I like when the kid runs with their W-2 to HRB and claims themselves and then the parent's return filed later with AOC is rejected. We then get to file an additional 2 amended returns! Ca ching!!

We offer a deep discount on dependent children's returns. A recent client interaction is going to have me change how we present our fee to the parents. Usually when I show a discount, I show the full price and the discount. But for dependent's returns, we just show the deeply discounted rate. This year, when the dependent child's return was now a real return and the fee was the normal fee with a more nominal family discount, we got an earful as to why the fee went up so much. Not sure why we handled dependent return pricing differently, but this is going to change going forward!

S-Corp's are pass-thru entities via a K-1 to the personal return. I have not seen an S-Corp where there is a 35% corporate tax imposed. I have not seen a place on an S-Corp return where that tax you cite could even be calculated! What you posted sounds more like a C-Corp to me.

Reminds me of a quote I once heard about pricing - if your clients aren't complaining about your price, you are not charging enough.

I will be attending this show on Thursday 5/1. Anyone else going to be there? Send me a private message if so. At last year's show, I got to meet another poster from this board - it was really awesome!

Hi Jack - how did you communicate the 25% base fee increase? And when in the calendar did you communicate this?

You can still have a heart! When you do decide to offer a discount, show them the full rate and clearly identify the discount and the reason. Then if you ever pull the discount (maybe their finances have turned around and they are no longer struggling), it won't be a surprise and you won't hear, wow - your rates really went up.

One of the best talks I heard on this topic: If you raise your fees 10%, will you lose 10% or more of your clients? If yes, then you need to consider if that is the correct increase. If no - if you raise your fees 20%, will you lose 20% or more of your clients? If yes, then you need to consider if that is the correct increase. If no - if you raise your fees 30%, will you lose 30% or more of your clients? If yes, then you need to consider if that is the correct increase. etc. So, to put it into practice: If you raise your rates 25% and lose 15% of your clients, isn't that a favorable exchange? You make more money and have more available time.

After some choice words, I offered him the option of going on extension or cutting the line at 3x the fee. He opted for the extension.

It takes at least as long to do the data entry for an amended return as it does for an original return. Amended returns also allow you to base your fee on the refund, which you cannot do on original returns. If you pick up a new client, and notice a previous return was done wrong, get them $2000 back and charge them $400 (as an example), they are ecstatic and you are well compensated for your knowledge and they also become your client going forward.

We were just recognized by our regional chamber of commerce with a Headliner Award for continued growth in current economy. We have seen double digit growth each of the last four years (2010-2013) and I bet when I get caught up with the books for tax season 2014, we will have hit that mark again. The economy is hitting people hard and they are looking for someone they can trust for help. My wife obtaining her EA, me Intuit QuickBooks ProAdvisor has drawn more people in who need and want help. Our approach of establishing relationships with our clients is resonating and attracting new clients. Gina is on the left, I am two over, or 2nd one from right.

Client sends an email the morning of 4/14 with all the detailed information (2 pages when printed) he has been missing since initial appointment late February. He closes his email with I look forward to coming by around 5p (on 4/14) to pick up my completed return. I am willing to bet he had no idea the email response he got back was going to look like what it did!!!

For the clients who came to pick up on 4/15, I had to send the federal and release the hold on the state and transmit prior to the federal acceptance. Those state efiles were rejected because it appears the NY process checks for some sort of federal information and since that was not there - reject. So I had to recreate and resend the state on 4/16. Had to do it this way to ensure 4/15 was met, but it would seem if the state depends on the federal there should be a 24 hour grace period on the state so things can process normally.