ATX direct input or interview input?

[SFA]

OK, I recently hired a new employee who has never used ATX. We are amending a 2011 return that we did not prepare. Good training return. So I asked him to input the original return and use it as an opportunity to explore the features of the software.

So, new everything. We have all the input details.

He has always prepared returns using interview screens, we input directly into the tax return fields and "jump to" screens.

What is your input process and why?

[Guest Taxed]

I have always used direct input. I have seen the interview questions and that is modeled after Turbo Tax for folks who are not tax preparers. It takes longer because you have to read it and then answer the question, then move to the next question and so on. Not a very productive use of time, when you are paying an hourly wage??

In my opinion if a Tax preparer has to use an interview method, they might as well use turbo tax.

[kcjenkins]

In my opinion if a Tax preparer has to use an interview method, they are not competent enough to do tax returns for others. Anyone competent can do them much faster using direct input.

[ljwalters]

Agree with KC

[Eric]

And if you require an interview method presented by an animated cartoon character? I wonder whose idea Maxwell was. Probably Glynn's.

[SFA]

The rest of the story . . . I asked him to do the direct entry method. He seemed to not like that, but ok, he tried. That was Thursday. Friday he called in sick . . . Oh yes, last Monday was his first day.

I am wondering if he will recover by this coming Monday?

Am I a terrible boss?

[Pacun]

This is my input approach, I ask for identification and SS cards. I ask the client "Did you work last year"? If yes, let me see your W-2s. Then I ask about unemployment, lotto, casino winning, and then I ask for any other documentation they brought in. Then I move the interview about dependents and I ask other questions. When I have a better understanding of their situation, I go to my computer and input directly.

If the client prepared his/her taxes with me last year, I start by saying, let me see the documents and (I ask everyone) let me see your tax return for the previous year.

I have never used an interview screen and I input everything directly.

[jklcpa]

The rest of the story . . . I asked him to do the direct entry method. He seemed to not like that, but ok, he tried. That was Thursday. Friday he called in sick . . . Oh yes, last Monday was his first day.

I am wondering if he will recover by this coming Monday?

Am I a terrible boss?

Do you still have the other resumes that were sent in?

[Guest Taxed]

If I had recently hired this person I would be seriously second guessing my decision?

Not a good sign first week!

[kcjenkins]

The rest of the story . . . I asked him to do the direct entry method. He seemed to not like that, but ok, he tried. That was Thursday. Friday he called in sick . . . Oh yes, last Monday was his first day.

I am wondering if he will recover by this coming Monday?

Am I a terrible boss?

No you are not a bad boss, but you should not feel bad if he does not come back. Either he knows enough to do direct input, or he does not. If not, you will be wasting time all season, double-checking every return he does. Safer to your reputation to have no employee than to have an incompetent one. Not to mention better on your peace of mind.

[SFA]

Either he knows enough to do direct input, or he does not. If not, you will be wasting time all season, double-checking every return he does. Safer to your reputation to have no employee than to have an incompetent one. Not to mention better on your peace of mind.

My thoughts exactly. Sometimes you just have to laugh. I know that there are aces in every deck of cards. Looks like I may have to "go fish."

[Guest Taxed]

What software was this new hire using in his previous tax preparation work?

Don't tell me Turbo Tax or Tax Act!

[SaraEA]

The interview method is used by the chains just in case their employees didn't learn enough in their basic courses. When I refer college students with their one or two W2s to the free sites, I always tell them to answer "no" when it asks if they are a student. Answering "yes" will only lead them to a bunch of questions about their education expenses, which their parents claim. I explain to them that they are not lying on their tax return, only lying to the software so it doesn't take them down a dead end.

On the other hand, the interview method can come in handy even for pros. How many of us remember to ask every client if they have an interest in foreign accounts? Some who have family in other nations actually do keep a foreign account so they don't have to bother with currency exchanges when they visit. And do we always remember to ask if their direct deposit/debit info is the same as last year or did they change banks? Do we always ask about unemployment or gambling winnings? With the interview method you can't miss these things.

Taking a day off on one's first week of work is not good sign. On the other hand, getting sick can really happen. It would be a nightmare to spike a 103 fever on your fifth day of work, but it can happen. Was he engaged and trying hard for the first four days? I would think that changing from the crutch of the interview method requires self-confidence in one's abilities. Maybe you should encourage him to write down every area of concern or doubt on each return and then address it with him. My hunch is the lists will be long at first but will dwindle as he learns to rely more on his own knowledge than on the software's "reminders."

[Guest Taxed]

>>> On the other hand, the interview method can come in handy even for pros. How many of us remember to ask every client if they have an interest in foreign accounts?

Perhaps some pros use the interview method, but in my opinion that is not efficient.

I do agree that even the best tax preparer can miss some questions to ask. I use the Drake's questionnaire. Here is a sample of the questions. It is 45 pages long if you want to print the whole thing.

Income Information
Name: SSN:
Yes No
Yes No
1. Were there any changes to your filing status or number of dependents during 2012?
2. Can you or your spouse be claimed as a dependent by someone else?
3. Did you incur any childcare expenses?
4. Did you have a change in residence or job location during the year?
5. Did you move during 2012? From where? Date of move
6. Did you reside in more than one state during 2012? If yes, which states?
7. Did you receive any notices from the IRS or the state taxing agency? If yes, please attach.
1. Have you received all W-2s from all employers? How many W-2s are attached?
2. Did you use your vehicle on the job other than for commuting to work?
3. Did you have an employer-provided vehicle which you drove home or used
personally? If so, enter the lease value. $
4. Did you work out of town at any time during the year?
5. Did you earn income from a state other than the state in which
you live? If yes, what state and how much?
6. Did you or your spouse receive any tips not reported to your (or your

[SFA]

I agree with all of you. However using a checklist is different than using the ATX interview feature. We have checklists that document whether we actually asked the question of the client. Because we have a second person proof a return, we need some hard copy "cya" answers and notes. ATX has a checklist feature that also offers suggestions after the return is finished. Sometimes we review that too.

It's really a matter of preference and efficiency. To me, the 1040, page 1 and 2, line by line, is the interview. EVERY line item leads to the required forms, schedules and related data input screens.

The key is to "know your client" and to have a process that helps you "GET" to know your client.

My new employee may still work out. I hope that he will. We will see what Monday brings.

I appreciate this forum. It is easy to get "tunnel vision" when surrounded by too many like-minded people. The answer to a new employee's question can't be: "because that's how we have always done it!"

PS the foreign bank account question is on our checklist! That one IS easy to overlook.

[JohnH]

I think it's a good idea to include the 'Foreign Accounts' question on the engagement letter, just before the signature lines. Especiallly since gettting the correct answer to this question is potentilly more important even than getting paid for the return, given the huge penalties involved.

[Guest Taxed]

I have the Foreign Account question in the section with interest, dividends, investment income.

These days with so many things to track and the risk of huge penalties you have to use a checklist.

I don't do too many EITC returns, but that new checklist was a wake up call. Clients wondered wha I was asking all these questions when I should know the answer because they were established clients??

[SaraEA]

Drake's questionnaire is 45 pages long??? I bet you get 44.5% of them back blank! (Kind of like organizers--the longer they are the more daunting they are to the client and the more unlikely they are to even begin.) I'd eliminate all redundancies to get the thing down to a manageable length. For example, the first #s 4, 5 and 6 ask essentially the same thing; ditto for the second #s 4 and 5. Can you edit this in Drake?

[Guest Taxed]

Don't have to print all 45 pages. For 2013 Drake will also include a checklist.