Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 Tax professionals from the good old days! How we did business then and how much has changed. This post was suggested by Doug from TRX! Let's hear war stories! Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 7, 2013 Report Share Posted January 7, 2013 When I entered the profession, tax returns were still being done by hand. (As an editorial aside, I believe every preparer should begin his/her career doing a season of tax returns by hand - that is a wealth of knowledge not gained elsewhere.) Every return was done by pencil with a big eraser. Maintaining depreciation schedules were a real challenge. I bought my first computer before the firm I worked for had become automated. My first computer was an IBM 286 with 5 1/4 (I believe that is right - maybe it was 8 inch) floppy disk drive. With the computer, I bought a color monitor and a dot matrix printer and the set up cost me over $4,000 and came with a very cumbersome word processor and an equally cumbersome spread sheet. Oh, that was in 1984. Shortly thereafter, I went to work for a different firm who was automated. We had one computer station for 20-some workers. Good times! 1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 Crank says... What a bunch of old people. My first computer was a compaq in 1984. It was the size of a suitcase with a 5 in (i think) green screen and two 5.25 floppy discs, no hard drive and if I remember correctly, 512k of RAM. Lotus123 was the softwwaqre of choice loaded with macros. In 89 I moved up to a 10MB hard drive and a modem. And of course I first got internet service in early 1996 and no one else I knew, knew what the internet was. I got my first email address and had no one to email. For the first few days I kept checking it for mail thinking I might get some sort of junk email like the USPS...geez. I was fascinated by this internet thing and ordered a 5 year prepaid dial-up subscription for $250. Oh yeah, and when I was a kid we used to walk to school in the freezing cold over 5 miles, uphill....both ways. 1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 When I entered the profession, tax returns were still being done by hand. (As an editorial aside, I believe every preparer should begin his/her career doing a season of tax returns by hand - that is a wealth of knowledge not gained elsewhere.) Every return was done by pencil with a big eraser. Maintaining depreciation schedules were a real challenge. I bought my first computer before the firm I worked for had become automated. My first computer was an IBM 286 with 5 1/4 (I believe that is right - maybe it was 8 inch) floppy disk drive. With the computer, I bought a color monitor and a dot matrix printer and the set up cost me over $4,000 and came with a very cumbersome word processor and an equally cumbersome spread sheet. Oh, that was in 1984. Shortly thereafter, I went to work for a different firm who was automated. We had one computer station for 20-some workers. Good times! You are right! All preparers must learn to do a few return by hand on paper using just a calculator so that they get an idea where the #s come from and where they go. My father in law had depreciation charts posted all over his credenza and little cheat sheets. When i got my first computer and got a bootlegged copy of Lotus 123 from a friend I made up depreciation charts for him using macros. What a time saver that was. The amazing thing was that people really liked that computer paper with perforation. it meant that it was really important! Do you remember EZ Tax??? I made runs to local post offices to pick up forms and booklets because many clients would forget the booklet IRS mailed to them. Making copies was so expensive back then. I remember when the copier guy billed for toner and cleaning it was like a utility bill! 15 years back when i was moving, I had to get rid of all the "old stuff". Now i regret I should have kept that old daisy wheel printer and that green IBM monitor! I still have a 5.25 inch disk with that Lotus program pinned to my wall for keepsakes. My son asked what the hell that was when he first saw it. His grand father had to tell him a long story of how things were back in the old days. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted January 7, 2013 Report Share Posted January 7, 2013 Still a current issue (to me). When I get a potential new customer who thinks obtaining software will enable them to become a payroll processor, I (try to) politely turn them down. No software teaches anyone to become a payroll processor, or tax preparer. All need the underlying knowledge/experience to know when something is simply not right. The software developer is not signing the forms... My first computer was a Panasonic "portable" which weighed 20+ lbs. Fancy one at that as it had two floppy (720k) drives and a 10meg hard drive. It was a gift from a family member who was a county planner. I had a feeling I would end up in some sort of computer related work when I first went to visit my mom at her workplace. She was then a keypuncher for Southern Pacific, and took her cards into a huge room with a "computer" in it. It was in 1966 IIRC. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 7, 2013 Report Share Posted January 7, 2013 Days of Deja Vu! I still have every piece of old equipment I ever bought. Don't ask me why other than that it all still works. I have two of those green monitors about a foot deep as well as my first computer which is a 1993 IBM PS1 with a 25 Mhz Clock, 8K Cache, 129 mg hard drive. 4MB Ram expandable to 32MB.; a 3.5 floppy card and a VGA 640 x 480 video card. I had a DOS OS. We later loaded up on memory, added a second hard drive and a SCSI CDR. Can you imagine? I spend thousands on that machine and felt like a queen. I had a Lexmark Laser printer which had to be taught that it was a HP because there were so few printer drivers available. It's a wonder I was ever able to make a profit. I do have to say that every piece of equipment I bought over the years has paid for itself and it has all had a lot of TLC. I also agree that anyone who is serious about tax preparation will never have a better background that the old lead pencil, eraser and carbon paper days. The biggest highlight of my career was the purchase of a copy machine. What? No More Carbon Paper? We really had to love what we were doing way back then and probably onward to the present. Yikes, I just looked up the data. I used that computer through 1999 when I upgraded and also switched to ATX from Parsons. My gross Income for Tax Year 1992 was $705 and 1993 it jumped to $1,083. No wonder I had two part-time jobs as well as doing all the accounting for my husband's business. This year I was able to add a 192 sf addition to my home office. I must have been doing something right. Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 7, 2013 Report Share Posted January 7, 2013 This if fun. How about those overlays? Remember those? Man - are we spoiled today or what? Here is a scary thought. What will folks 30 years from now have when they look back at us and say, did they really prepare returns that way? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 What's amazing is that the price of computer has decreased significantly as they became more powerful. In the 80s we were paying close to $3000 for a computer with only 512kb of memory and a 10mb hard drive. My son just picked up a laptop with 6GB memory and 720GB hard drive for $359. I wish the price of other stuff followed this trajectory. I am still using Windows XP Professional on my main computer, I hate to think that in 2 years i have to give up because Microsoft will not support it anymore (I still have my windows 3.1 disks). Anybody try Windows 8? Are the bugs worked out. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 This if fun. How about those overlays? Remember those? Man - are we spoiled today or what? Here is a scary thought. What will folks 30 years from now have when they look back at us and say, did they really prepare returns that way? Oh yes those acetate overlays that cracked and became yellow exposed to sunlight! But it was a god send compared to using carbon paper! Quote Link to comment Share on other sites More sharing options...
TRX 1 Posted January 7, 2013 Report Share Posted January 7, 2013 Do they even still have carbon paper? 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted January 7, 2013 Report Share Posted January 7, 2013 How about the blue mimeo graph machines. Always ran extra copies just to smell the ink. I'm talking about the hand crank ones and not the self-feeding that disappeared years ago as well. I'm a teacher and the thought of making a transparency that you used on a roll is way too funny. Comes right in line with the slide projector and cassette tape for audio. "Ding" next slide please. Gosh we are dating ourselves. 1 Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted January 7, 2013 Report Share Posted January 7, 2013 The first ones I prepared was back in 1956. I typed them and made two carbon copies using the forms provided by the IRS. Tax laws were much simpler back then. You could use SL, DDB or SYD less salvage value for depreciation and you could usually get by with a 15-year life for a building. There were no Earned Income Credits, social security tax ended if you made over $4800 and back then $4800 was a pretty good income. I had one airline pilot client who made $ 14,000 which was big bucks back then. Back then H&R Block was just getting started and they charged $5.00 for a short form. I had enough of tax return preparation pretty soon and took a job as an auditor. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 Here is a little movie trivia. Next time there is a re run of Saturday Night Fever (John Travolta's big break as an actor), watch it. There is a scene where his friend who get's a girl pregnant is complaing to him and John just want to borrow his car. Look in the background. They are standing in front of a local tax prep shop in NYC offering 10 returns for $200. It was advertised right on the window like used merchandise stores. Every time I see that move i get a chuckle at that scene. 1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 7, 2013 Report Share Posted January 7, 2013 The first ones I prepared was back in 1956. I typed them and made two carbon copies using the forms provided by the IRS. Tax laws were much simpler back then. You could use SL, DDB or SYD less salvage value for depreciation and you could usually get by with a 15-year life for a building. There were no Earned Income Credits, social security tax ended if you made over $4800 and back then $4800 was a pretty good income. I had one airline pilot client who made $ 14,000 which was big bucks back then. Back then H&R Block was just getting started and they charged $5.00 for a short form. I had enough of tax return preparation pretty soon and took a job as an auditor. I know exactly what you are talking about. I was too young then but i saw my father in laws files from the 6os and that trusty carbon paper is in each client's file. i bet he got them by the truckload! The funny thing is people back then had "penmanship". They wrote their figures so beautifully on that form. Now sometimes I can't even read my own figures! Quote Link to comment Share on other sites More sharing options...
TRX 1 Posted January 7, 2013 Report Share Posted January 7, 2013 Here is a little movie trivia. Next time there is a re run of Saturday Night Fever (John Travolta's big break as an actor), watch it. There is a scene where his friend who get's a girl pregnant is complaing to him and John just want to borrow his car. Look in the background. They are standing in front of a local tax prep shop in NYC offering 10 returns for $200. It was advertised right on the window like used merchandise stores. Every time I see that move i get a chuckle at that scene. I have seen that too Doug Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 8, 2013 Report Share Posted January 8, 2013 Do they even still have carbon paper? I have a folder full somewhere. You want some? :P Quote Link to comment Share on other sites More sharing options...
Terry O Posted January 8, 2013 Report Share Posted January 8, 2013 I staerted in 1982 - -using carbon paper, and - - -wait for it - - - - -a crank handle adding machine!!!! Boy did I go through a LOT of carbon paper!!! My first computer was a 1986 Hundai Blue Chip - - 20 mg hard drive - - cost $2500 - - more than I was making at the time, but still ran the tapes on that old adding machine for a few years. I even did the thermal fax paper thing. I just realized - -I am getting really, really REALLY old - - -OY! Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 8, 2013 Report Share Posted January 8, 2013 Found a box in the attic that has my old Hayes 1200 baud modem, serial and parallel cables and a printer buffer box. When I was running DOS programs and had to print reports or a bunch of files at once the printer would tie up the computer until it finished printer. Instead of getting a cup of coffee and waiting someone told me to buy this buffer box (I think i paid $250!). This box was like magic. You send a job to print and it would free up the computer and the box controlled the printer. Once I dust off the cobwebs I plan on turning on my old modem and buffer box. I wonder if I can still use my buffer box?? Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 12, 2013 Report Share Posted January 12, 2013 Do they even still have carbon paper? Yes they do, you can still buy it, and I use it every week! Our pistol match scoresheets get filled out in duplicate (with carbon paper); one set for each team captain. Quote Link to comment Share on other sites More sharing options...
JohnH Posted January 12, 2013 Report Share Posted January 12, 2013 Funny that carbon paper is being discussed here, because I have a story from this week. My wife misplaced her passport while we were in India, so this past Monday we had to jump through lots of hoops at the US consulate and Indian immigration to get back home. It was an all-day ordeal, but not without its moments of humor. The last stop was Indian immigration. After we paid our fees, the official filled out a receipt form which had a piece of carbon paper between the top sheet and second sheet. He had my wife sign the form with the carbon still in place. Then he took the original and PLACED IT IN THE COPY MACHINE beside his desk. He then had her sign the photocopy even though she had already signed the original. I now wish I had asked for the piece of carbon paper as a souvenir of the entire ordeal. 1 Quote Link to comment Share on other sites More sharing options...
rfassett Posted January 12, 2013 Report Share Posted January 12, 2013 Funny that carbon paper is being discussed here, because I have a story from this week. My wife misplaced her passport while we were in India, so this past Monday we had to jump through lots of hoops at the US consulate and Indian immigration to get back home. It was an all-day ordeal, but not without its moments of humor. The last stop was Indian immigration. After we paid our fees, the official filled out a receipt form which had a piece of carbon paper between the top sheet and second sheet. He had my wife sign the form with the carbon still in place. Then he took the original and PLACED IT IN THE COPY MACHINE beside his desk. He then had her sign the photocopy even though she had already signed the original. I now wish I had asked for the piece of carbon paper as a souvenir of the entire ordeal. Oh no John, was that YOU that I received an email from saying you were trapped in some foreign country and couldn't leave until you paid your bill which you couldn't do because you had been robbed and would I please send money? I thought it was just a scam so I just deleted it. I am truly sorry. Cute story though. Carbon paper vs copy machine. The old meets the new. Very interesting. 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted January 12, 2013 Report Share Posted January 12, 2013 Scam email. Why didn't I think of that? I could have made a fortune off that lost passport but I missed my opportunity ! Quote Link to comment Share on other sites More sharing options...
Joel Posted January 12, 2013 Report Share Posted January 12, 2013 I was dealing with a nurse recently and she mentioned that the form she was filling out would make a copy onto the duplicate because it was carbon paper. (There was no carbon paper between the forms) I advised her that she was not using carbon paper but NCR paper. She did not know what I was talking about, so I explained to her what NCR means. Joel Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 12, 2013 Report Share Posted January 12, 2013 Now that you mention that; the Wisconsin Motor Vehicle License Application forms have three sheets with two pieces of carbon paper in between. That should have come to my mind right away because my husband and sons have a dealership and I handle those all the time. Does that antiquate Wisconsin, or what? Copy 1: State, Copy 2: Dealer, Copy 3: Purchaser This is also true of the purchase contracts. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 12, 2013 Report Share Posted January 12, 2013 Are the kids still sniffing typewriter correction liquid to get high?? I think my bottle dried up years back! 1 Quote Link to comment Share on other sites More sharing options...
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