JohnH

Bad decision. If you're right, no problem. If your doctor is right, you're in big trouble. Colon cancer is on of the deadliest cancers once symptoms appear, and one of the easiest to treat/prevent if caught in time. At age 65 I've had 4 colonoscopies and they're no big deal - less stressful than a trip to the dentist once you get through the evening before. And far easier than a sigmoidoscopy - I've had a couple of those as well.

Good point Lion. If the client considers the POM to be the equivalent of insurance, then the taxes on the POM are the equivalent of a deductible.

Everybody should stay focused on the main issues and not allow these conversations to degenerate into personal attacks in either direction. Each person's experience is what it is, and there's no purpose served in anyone questioning another's experience. This is a community of equals, not hostage to a single vendor, and with the overriding purpose of exchanging tax-related information. At the end of the day, the problems ATX is having this year are a side issue. At this point everyone has made their decision for the current year and will have to live with. No minds are likely to change for the remaining 3 weeks. Let's concentrate on what's important for this community in the long run.

Did you calculate the additional tax generated by the 1099-Misc, just so the client knows how little it cost them to report the income? It would be nice if the compensation included the additional tax liability, but that isn't going to happen. So I'd be sure the client has a good perspective on how small the additional tax is in comparison the the P&I.

All that glitters is not gold, but still valuable IMO.

Given the topic and the context of the post, I think ethnicity is relevant in this case. I can't figure out why you have a problem with it.

Lion: there's no problem filing am extension for someone who is on an installment agreement. Even if the extension anticipates that they will owe additional taxes, it still won't invalidate the I/A.

I suggest a slightly different strategy. File extensions immediately as the returns come in the door after your cutoff date (mine began 2 weeks ago). That keeps the pressure off, and it allows you to better prioritize as the deadline approaches. Personally, I think this allows me to get more returns finished between now and Apr 15 because there's no pressure. For me Apr 15 has become just another day on the calendar. I usually come in late, spend a few hours reviewing extensions and calling a few people to be sure they paid their balance due, and go home early. Ron, your approach achieves the same result, but what happens if somebody gets sick or other unavoidable delays happen around the 12-14th? I learned this the hard way years ago when a business partner had a heart attack during the final week. The next year, I became proactive with extensions and have done that ever since. There are a couple of other advantages as well. Sometimes you have a client who gets really unnerved about extensions. You flush that out early in the process and then can make a good decision about whether he's worth making an exception or do you want to take the chance that he will go elsewhere. You're not dealing with his obsessiveness under deadline pressure. The other benefit is with those who's work comes in after the deadline, you tell them they're going on extension, but they still call, text, or email to ask "How's it coming?" My answer is always "I filed your extension, will get back to you after Apr 15." End of discussion. For me, this works quite well.

She: I don't think they charged sales tax on the interest. You: Ok, your right. Just forget I brought it up.

I will go into the office Apr 15 about mid-morning and spend a few hours reviewing all my extension filings. Then home around 5pm to take my wife to dinner. This became an annual Apr 15 ritual for us many years ago, once I learned how to manage extensions the right way. Sure beats working until all hours of the night and risking mistakes. After dinner we will pack and leave for the beach the morning of Apr 16 to spend the rest of the week relaxing.

I've had a few times over the years when someone questioned my price. Not so much any more since I usually bring it up at the outset with a new client even if they don't. But in those situations when they did question it, I always told them to just send me a check for whatever they think it's worth. Most of the time they paid the full bill, and I didn't have to deal with the cheapskates any longer. I especially rememeber one guy who did press me a bit, because he was determined to get me to agree to a lower amount. I kept telling him this wasn't a negtiation. I didn't have a different figure in mind, but if he knew more about the value of my services than I did, then he should be able to determine what's fair. He got very frustrated because I wouldn't play his negotiation game. He kept telling me I was being unreasonable. I just assumed he had just finished his "assertiveness training" seminar and was trying to practice it on me. Maybe he should have been negotiating for a refund of the money he wasted with them.

---> HRB does not quote a price until they have actually entered the return into their system and figure the price by # of forms and # of lines etc. There is a reason why they do it this way. After waiting may be an hour and then spending another hour with the tax preparer if the bill is say $50 to $100 higher than you had expected (or may be yu don't even know what the charge should be) you are reluctant to start all over again and just throw in the towel and pay!! That is what they count on every day! <-0- Hey, it works for every car dealer in the country.

Forms-based data entry is way overrated. It takes about a half-day to get accustomed to data entry screens if the user is committed to making a change. And data entry screens offer some advantages in several instances, especially with Schedule A - anybody do many of those? In Drake you can switch from the data entry screen to the live form by pressing Ctrl-V, then back to the data entry screen by pressing Ctrl-E. Now how hard is that to do? To me it closely resembles a bunny-hop. The best way to learn to use Drake is to put one of their tutorials on one screen and a return on the other. Then just let the tutorial take you through the process while you're making money. (I imagine any new software which offers decent on-line tutorials can be learned in this fashion). As a more general comment, lots of ATX users are going to need to have a more open mind about changing vendors, either by choice or by default. But if you try to work through any new software intuitively, you are automatically going to dislike any feature you have in your present software that isn't exactly the same in the new one. Just gonna have to get past that roadblock...

Believe whomever you prefer. (Applies to me as well)

Oh! Soup Nazi Restaurants. "Use that cell phone and NO SOUP FOR YOU! http://video.search.yahoo.com/video/play;_ylt=A0S00MhnvUdRIDsAQxv7w8QF;_ylu=X3oDMTBvb2o4YTJwBHNlYwNzcgRzbGsDdmlkBHZ0aWQDVjEzNg--?p=soup+nazi+episode+youtube&vid=e5ed68c47c22f8aaf637ef61fe4b9f56&l=2%3A57&turl=http%3A%2F%2Fts2.mm.bing.net%2Fth%3Fid%3DV.4930902571549201%26pid%3D15.1&rurl=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DYJyGJQx2Fgk&tit=Seinfeld-Soup+Nazi+%28Greatest+Parts%29&c=1&sigr=11acisb1u&age=0&&tt=b

My apologies to the Amish, and to those of you who prepare returns for them. My mind wasn't going there when I made the buggy whip reference - just want to make that clear. Guess I walked (didn't drive) right into that one...

If I visited a restaurant that refused to take my order because I'm on a cell phone, that would be my last visit to their establishment. (Of course, I will add that I have sense enough to get off the phone while ordering...)

Your friend is feeding you bad info. I was curious about this because I hadn't seen any complaints about the form on the Drake forum, which I've been visiting fairly regularly to help get up to max speed. So I asked Drake. They said they have no problems with e-flinging them.

I do everything I can to keep my clients out of my office, especially when I'm working on their tax return. So for the most part that isn't a problem. However, I tolerate most any type of cell phone behavior while they're there. If someone's phone rings, I encourage them to answer the call because I always have something in front of me to do. However, if I have a question to ask I don't mind interrupting their texting or their conversation if I need some info. To me, what's fair regarding the interruption issue works both ways. I've never had someone refuse to respond, but if they did I'd show them the clock (not the door) just as a reminder that they're buying some expensive time while they're discussing their child's last piano recital with grandma. I've mentioned this before and will repeat it here - the way people communicate and interact is changing drastically. We can either adapt or go the way of the buggy whip.

Good strategy Joel - it got your question lots of extra view.. Let's keep the thread active. It may take off on an entirely different direction in the next 3 weeks.

I don't usually ask - I just tell them we will need to file an extension. If they refuse, then I tell them "we" won't be doing anything together...

I have a couple of retired clergy who receive a 1099R and they have designated the entire amount as H&U allowance. I don't enter the 1099R on the return at all. I paper file, attaching an explanatory note to the return with a photocopy of the 1099R as a part of the explanatory note. Have never had that method questioned either. This method eliminates the need for entering the negative number online 21, but I don't know how it could/would work if filing electronically.

After getting bank statements, recording the transaction info in Excel is much better than using accounting software, (such as QB or Peachtree). And anyone who can type can be quickly trained to enter the raw data into excel, even if they have no accounting knowledge. This can even be suggested to the client that they do this in order to keep their costs down. Account coding can be done after the fact by somene knowledgeable in accounting terminology, and the end result given back to the client for their approval and sign-off. Bank statements will provide check number, date cleared, and amount. Hopefully they are banking a bank which prvides check images with the statement. But if not, having the info in Excel allows you to group by transaction amount so you can detect patterns. Repetitive amounts can quickly be isolated (loan payments, rent, etc) and only a single check copy obtained to support multiple transactions. Having the ability to group and rearrange based on amount, date, payee, etc can greatly facilitate coding the transactions to the proper expense accounts, too. Utility companies can be asked to provide account transcripts, which will help identify payees for those checks. Same for insurance companies, major vendors, and suppiers as has aleady been noted. Personal bank statements of the owner(s) can yield a records of deposits which tie back to checks on the bank statement if there were withdrawals. This is important because clients often say they're not making money when in fact they are taking personal withdrawals. They equate not "enough money in the bank" with "not making any money", when in fact they are just withdrawing money to live on and not recognizing it as profit. How many times have we tld a sole proprietor that their personal withdrawals are profit nd they respond "but I have to have money to live on."

The letter from the denomination should be sufficient to establish the advance desigation for the retired minister. This is a standard practice with many denominations, and perfectly acceptable. The error I would often make with ATX would be to forget to fill in the Fair Rental Value of the home on the Clergy worksheet. The excludable amount is the smaller of 1) the designated amount, 2) actual expenditures, or 3) fair rental value of the residence (fullly furnished with all utlities paid). There are blocks on the clergy worksheet for all of these entries. Leave one out and the worksheet will carry the entire H&U allowance to the SE and also add it to line 7.

Very wise advice on all counts. I see you take an interest in giving your clients sound financial information. It's always fascinated me to see tax preparers panic over a .25% per month charge simply because the IRS calls it a "penalty". In fact there's no difference between a non-deductible penalty and a non-deductible consumer interest. IRS has been very shrewd in pulling the wool over the eyes of tax preparers and taxpayers with this "penalty" wording. The main purpose of the FTP penalty is to boost the effective interest rate - that's really all it does. I've seen preparers urge people to pay tax liabilities with credit cards, home equity lines, and other emergency methods when they would actually save money by setting up an an installment agreement. Even the $105 set-up fee isn't very significant when spread out over the life of the agreement if the client owes several thouand dollars. The current interest rate is 4%, and the .25% penalty equates to a 3% APR. So for an effective 7% APR they get an unsecured loan which doesn't show up on their credit record and they keep their credit lines (if any) open for true emergencies.