JohnH

Social media, email, and texting are valuable resources for maintaining client communication, but only if used efficiently. The intent is to keep the client out of your office and off your telephone so you can get some work done. But if the time expended in answering client questions isn't already built into their fees, then anything beyond short, simple answers to basic questions needs to be handled appropriately. It is easy enough to reply that the question is too complex, additional info is needed, or the matter requires a phone conference or sit-down meeting to tease out all the variables. Otherwise you will find yourself in a quagmire.

Mine arrived. I agree - it is packed with info, well organized, and very good use of color.

These days, with email and texting capability, there's no reason to give info to a third party (with the possible exception of a valid subpoena). Email a password protected file toe the client and let them do whatever they wish with it. I have never yet seen a situation in which a third party had a valid reason for obtaining info directly from me. Not that they haven't tried. I've had a couple of bankers to offer silly excuses for getting info from me,, but I risked losing the client rather than cave in.

I've always thought the stretch IRA fell outside the original intent of IRA plans. I don't fault anyone for availing themselves of whatever the laws permit (full disclosure - I inherited a relatively small one that I am stretching out as long as possible). But there really isn't a good argument for allowing the stretch IRA to exist. I have the same view of the backdoor Roth, but that's another issue altogether.

I resolved not to make any resolutions. Dang! Only one day into the year and I already failed.

I saw an article about this a few days back. It was written by a financial advisor, but he's one of those rare exceptions - a F/A I actually respect. I'm pretty sure he said the effective date is expected to be when the legislation passes, thus effectively grandfathering existing stretch IRA's.

I like "pdf Factory" from Fineprint for this task. You set it up as a printer in your computer. Whenever you need a PDF of a document or a set, you choose this as the printer. Once the document is in pdf Factory, you can manipulate it in numerous ways, including setting a password for security. cost is about $60, and well worth it. http://fineprint.com/pdf/

One of my two favorite pig analogies. Here's the other one, which I try to remember when tempted to explain tax rules to some people:: "Never try to teach a pig to sing. All you get for your efforts is bad music and a frustrated pig".

I decided to get Drake now (Dec), rather than waiting until late Jan as I usually do. The program just blows my mind with its user-friendly features. After paying, the download took 10 - 15 minutes. I set up a few preferences, transferred my macros form last year, and did a printer setup, all in about 30 min. Ran a pro-forma for a client and all looked good. The only thing left to do is install the state programs when they are available. Drake cannot be beat for simplicity and efficiency.

What's he upset about? Not sure what he means about the 2-week's warning. Following his normal practices, he has at least until Dec 2017 to get his 2016 Forms 1099-Misc prepared and the 2016 return completed. I think that's plenty of advance notice.

Congratulations Tom. Good thing the test doesn't have a "Technology" section.

She should ask the management company how they handle this. Most timeshares are so worthless that some management companies will take them back free (or maybe charge a reasonable fee), so they can try and hawk them to some other unsuspecting soul. At least when the company does that, they decrease the risk of an "owner" who just stops paying.

Every time I get a stream of Viagra ads, I always ask myself "How did they know...?"

Yes, Merry Christmas.

I think the $100/day penalty applied EVEN IF the income was reported to the employee. There was some forgiveness through June 2015, but after that there was a real risk of incurring the penalty. That was the problem with how IRS was interpreting the rules, and it needed to be changed.

Isn't the big problem exposure to the $100/day penalty if the owner pays his insurance premium throughout the business? I think that problem hung over the heads of everyone who did this after June 2015. However, I have been reading that recent legislation eliminated the penalty. I've been interested in it because I know someone who did this and has been very worried about the penalty - would love to give them some good news.

An engagement filled with potential land mines. I had a similar situation many years ago with a long-time client who was a trusted friend. After I spent a few hours researching it, I told him there was no way I'd be involved. He needed someone with vastly more experience and much deeper pockets. And even if you get it right on this end, you have to be sure and get it right on the other end. This was a fairly simple operation overall, but not worth the risk.

The Jan 31, 2017 due date for 2016 W-2 and 1099-Misc is going to create enough heartburn to last all year for some of us. Add to that the new penalties for incorrect ID numbers on 1099 as well and it's enough to cause one to hang it up. Anyhow, I just learned that 1099Express is filing extension requests for all their customers from the prior year, unless the customer opted out (that's a relief). They will also files extension requests for new customers who request it. I have a feeling they're going to be very busy come January. But even 1099Express says the W-2 deadline is set in stone. They also make a very compelling case for using a TIN Name-Matching service due to the prospect of retroactive penalties a year after filing due to the "Delayed Tier-3 Penalty". It's worth a read.

I opted out.

Thanks for telling us about this. I just ordered two sets - one for my desk and one to carry in the car.

I like your attitude. We know that some practices must prepare EIC returns in order to survive, so this isn't a subtle attempt to slam them. But I decided I simply can't charge enough to compensate for the penalty risk of preparing a return claiming EIC, especially when there's a Schedule C involved. So for many years my solution has been to refer them to HRB, while explaining that they need a preparer who is comfortable with those type of returns, has the deep pockets to cover any surprises, and can give them the quick turnaround most of them are seeking. Maybe things are trending that way with ACTC and AOC, although my gut feeling is that this credit by and large involves a type of client whom we don't have to second-guess and interrogate on every response. Or a client who has already visited one or two other preparers and has been coached on what to reveal and what to leave unsaid. (or as my father-in-law Sam Cook used, to say - "Somebody who knows how to play fast and loose with the truth".)

Good policy. I follow the same practice. No exceptions. I'll email a copy to the client - they can do whatever they wish with it.

Assuming I were interested, I'd tell them the highest prices, including the warning that there will be annual increases, and let them take it or leave it. Who cares what H&R Block charges? They are already signaling that they want to play you off against the competition and beat you down on price. Maybe you should tell them that buying tax preparation services is like buying oats. For a fair price you can provide good quality oats. But if price is their only consideration, then for slightly less money they can risk getting oats that have already been through the horse. Most (not all, but most) people who own rental property are a royal pain. Their whole business model is built on getting everything done as cheaply as possible (plumbing, electrical, cleaning, general repairs - you name it) and that includes tax preparation. They expect to collect the highest rent possible on their property and pay the least amount possible to those who are their support & supply system. And they aren't bashful about constantly needling you on price or taking advantage of your time - they frequently take great pride in playing this little game. These attitudes are generally passed on to them by other landlords or the guy who sponsored the seminar that got them interested in rental property in the first place. Too much of an entitlement mentality to suit me.

Well, you do have a point, Rita. Reminds me of the time I was speaking with a banker at church, when another member walked up to us. She reminded me of a previous conversation when I had told her she should not apply for a separate Fed ID Number for a sub-ministry of the church because it needed to fall under the blanket exemption the church enjoyed. She said she had called IRS and they had told her it was OK to do, so they sent her the application form and she had filed it anyhow. I thanked her for letting me know and she went on her way. The banker then asked if it bothered me that she didn't listen to what I had originally told her. I told him it really didn't bother me that someone didn't value advice I gave for free, because people frequently pay me for advice they don't follow...

I agree with everything said about keeping the clients out of your office so you can get some work done. Use US mail, Fedex, drop box outside your office, private delivery service, email, text, (anything but the telephone). The same rule applies to obtaining missing info, asking follow-up questions, and getting clarifications. 90% of the time you don't need to speak with them or see them.