JohnH

Yes, it has a neat appearance and it is also a neat concept. Mainly because it carries considerably less risk for the preparer and leaves the resppnsiblity where it poperly belongs. I have no responsiblity for filing - that's the client's job.

Same here. Still preparing 1099's on paper, even for my client who issues over 200 of them each year. Hope he never hits 250. But then I'm paper-bound anyhow since I'm still preparing Form 1040 on paper. (Notice I said I'm "preparing" these returns, not "filing" them. The only return I FILE is my own. )

Catherine, I have a pretty good supply of red 1099 misc forms left over. I'm out of the office until Monday but will be glad to mail you some if you wish.

She sent the proper response and got them to drop the S/E tax assessment didn't she?

Looks good to me. And it wrks very well on my ipohne with the larger sizez - I'm making less tipyng ererrs.

Glad you joined us. We can be active on both forums - no problem. I havn't used ATX since the 2012 filing season, (switched to Drake and haven't looked back), but this forum and Tax Book are still my favorites. This forum still has an edge, though, because it isn''t subject to the whims of any vendor. That's powerful.

Speaking of how bureaucracies work, here is a prime example. It's the old "Sell the Fire Engine" ploy. When townspeople revolt against property taxes, the local politicians start crying that fire or police services will have to be cut. They insist there's absolutely no savings to be found in the bloated budgets for city hall, even though the mayor and half the city council have multiple family members on the payroll. Gotta make it painful for the public in order to get revenge and wear the taxpayers down until they extract more taxes. Same issue here with the IRS. Congress cuts their funding, so there's nothing to do but inconvenience the taxpayers so they will in turn complain to their Senators and Congresspersons. I'm sure there is absolutely nowhere else the IRS could save any money other than their front-facing segment. Put 'em on hold and make them wait, or just don't answer the phone at all. But it's full steam ahead on bonuses, union activities, and other "essential" expenditures. I'm looking forward to seeing what comes out of the hearings, although I'm sure that game is rigged as well. http://www.weeklystandard.com/blogs/report-irs-deliberately-cut-its-own-customer-service-budget_927141.html

Eric is right. Fresh out of high school, I first learned to navigate bureaucracy during 4 years in the U.S. Air Force. Then came college. The bureaucratic challenges were different with college, but the basic territory was very familiar.

Whenever government intervention in the marketplace is contemplated, we should always remember that the most efficient government entity is the military. Relatively speaking, it produces more tangible results per dollar spent than any other bureaucracy. That should tell us all we need to know.

If the initial contact was by phone, it was definitely a scam. In the past month, I've been contacted by two scammers by phone. I also learned that three of my clients had received calls which they did not return, and one elderly couple this week had visited their bank after receiving a call. Luckily, the banker told them to speak with me before taking any action.

According to the instructions, it appears that they can. there's no harm in trying, and if it fails they can call IRS and try to set it up by phone. Sometimes the person on the phone can override if there is a minor issue preventing the online setup. I've found most of those people to be very helpful and courteous when a taxpayer had a problem of this type. http://www.irs.gov/Individuals/Payment-Plans-Installment-Agreements

When you're confident you're dealing with drones, it's a good idea to know how to feed them in order to keep them fat & lazy. Sometimes they try to fight back when the worker bees start ejecting them from the hive.

All this griping reminds me of the guy who joined the monastery. He was told he had to remain silent for 7 years and then there would be an examination. So after 7 years had passed, the big day came. They brought him into the gathering hall. Everyone crowded around him and the leader and told him he could say two words. His two words were - "Food Bad." The leader then told him there would now be 7 more years of silence. After 7 more years of silence they brought him into the gathering hall. Again everyone gathered around and the leader told him he could say two more words. His next two words were - "Bed Hard" The leader then told him there would now be 7 more years of silence. After this 7 years of silence they brought him into the gathering hall. Everyone gathered around and the leader told him he could now say two more words. This time his two words were - "I Quit" To which the leader responded: "Well, you may as well quit. You've done nothing but bitch and complain the whole time you've been here !"

Every time I've been asked for one, I just had the client send the lender a copy of the 4868. I've never had a question come back requesting any sort of proof of acceptance. (I like the path of least resistance)

Glad they think your're a wizard. This year I had a couple of clients tell me they think I'm a tax gargoyle.

Very good :)

Sweet humor.

He could give them a form 1040 populated with his name, address, etc, and enter zeros on all the appropriate lines.

I agree. If I prepared returns claiming EITC, my fees would increase tremendously. Problem is, I'd have trouble deciding on a fee structure that would adequately protect me.

Here's an interesting link to an article on the subject matter of this thread: http://www.cpapracticeadvisor.com/news/12065684/average-income-tax-preparation-fees-increased-in-2015?utm_source=CPA+Tax+%26+Compliance&utm_medium=email&utm_campaign=CCSN150414002 I like all the discussion about "averages". Reminds me of my college statistics class, where the instructor said on the first day: "If I place one hand on a hot burner and the other in the freezer, then on average I should be feeling pretty good."

I view this more as "work expanding to fill the time allotted". I don't see it as any sort of measure of efficiency, and it certainly isn't having any positive effect on your bottom line. But I also understand that there are non-financial aspects to any business practice, and we each need to be comfortable with how we operate.

Have you ever considered penalty risk in your pricing? A penalty on a return with a $600,000 W-2 would likely be much greater than a penalty on a return with a $40,000 W-2. None of us expect penalties to happen, and we certainly don't expect them to be our fault if they do, but we still need to allow for the possibility. Now if your fee schedule already has this risk built into it based on the $600K W-2, then you're doing just fine on the $40K return.

I agree, and I think that has always been IRS's reason for going after I/C designations. After all, roughly the same amount off money is paid into SocSec/Medicare regardless of whether it comes via S/E tax or employee withholding + employer match. IRS wants withholding at the source so they don't find themselves chasing people who haven't set aside the proper amounts or didn't pay estimated tax. The only other issue at stake with I/C classification is Federal Unemployment Tax. But since it is tied to benefits, there would likely be no net gain or loss of revenue to the government if more people were I/C's and thus not eligible to receive Unemployment benefits.

Sure there's an extension of time time to pay. I didn't say it was without cost, but the cost is actually fairly modest, especially for a taxpayer who has to borrow the money. Anyhow, a taxpayer who files the return without full payment is in exactly the same situation as a taxpayer who applies for an extension and then files without fulll payment. The only difference is, the collections clock begins ticking six months sooner. Costs (penalties & interest) are basically the same. But IRS charges that FTP penalty, which when combined with the interest charge adds up to about 8-1/2 % effective APR. They bluff taxpayerrs and tax preparers with the dreaded "Penalty" word, and common sense goes out the window.

IRS either gets confused by their own rules, or perhaps they know the difference but they often bluff. Preparing a return is also not the same thing as filing a return, although the IRS has fooled a multitude of tax preparers into thinking it is. Also, they say "an extension of time to file a return is not an extension of time to pay", but as a practical matter that's exactly what it is.