Protecting our data from tax preparers being twitchy or careless

[FreedomTaxed]

I make PDF of completed returns.

 

The OP mentions something about Forensic and administrative policies.  I would like to know more about why they have those policies... 

 

After reading this thread and thinking it through, making the PDFs at the time of Completed, is a very good decision, and server space isn't an issue.

 

I mentioned 'forensics' since I've now spent nearly 2 years at this job, struggling to piece together WHAT happened, WHO did it, and HOW to fix the problem it invariably created... for an agency with online records going back to 1998. But almost nothing was appropriately tracked. Almost nothing was documented, for sane definitions of "documented". Jack would come in here and fire all of us, even me, if he had ever seen this mess. And yet... I must move forward. I have to fix all the problems of previous years, and learn from the mistakes of each tax season (which I now have total control over), so that the next tax season is better.

 

One thing I definitely want to get away from is the implied administrative policy of 'throwaway' tax preparers. Naturally it's hard to find a person who's only available to work for 3-1/2 months of the year. Part of my managerial aim is to find year-round work for these people; for a non-CPA, this is really impossible. We've retained a seasoned client who is willing to sales- and head-hunt for us. But the core issue is that it's hard to find people who are worthwhile, who will keep coming back into this company. Just today I had to deal with the possibility that one of our experienced preparers is actively dodging ACA and Sch.C/E/F training. We need this guy for the tax season, but if refuses to train (using a variety of excuses, like he'll call a CPA friend on the phone when he needs help during an appointment), then I'll have to give his seat to somebody else. All of a sudden, with 5-7 tax preparers, you start to realize that you're more beholden to them, than they are to you; one person gets sick, another's kids get sick, and you have a serious hole in your appointment schedule. The solution is to overhire, but since I'm not the company owner, that's been deemed an unnecessary expense. So that's out.

 

I guess I shouldn't turn this into a company-rant thread. But you can see what I mean about forensics and administrative policies.

[Lion EA]

Once I've given the return to the client to review and sign the 8879, I Lock it.  My company copy was a .pdf.  And, any further opening in the tax program does NOT get saved upon exiting.  (We're talking looking at something I couldn't drill down to in a .pdf, finding out where I entered something last year, that kind of stuff; not a real change before transmitting or an amendment.)  I click on No.

[Richcpaman]

Never "SAVE" the previous year return when you get out of it.  As michaelmars indicated, there WILL be changes.  Use the "completed" box and when you leave the old return "Do not save and exit."

 

At the firm, I can find those returns where saving after looking has occurred.  Stern words then go to whomever did that.  All are marked complete and it takes two extra steps to save when exiting. 

 

If you don't have employees that can adhere to these few simple rules, re-evaluation is in order.

 

*I* save the return after the fact when I leave it.  It does not matter to me that the ATX file does not match the info that was sent to the IRS/State.  I have a PDF copy of that information, created at the time of printing and efiling.

 

Some have stated that they have an administrative policy that employee's can not look at old ATX files or change them, that is fine.  But WHY? 

 

The OP Notes that his firm has filed on paper in the past, so there is no PDF copies.  In that case maybe *I* would restrict the ability of employee's to go into old ATX Client files.  But if I have a paper copy of what was done, then it doesn't matter, really.

 

Forensics issues?  That your entire database gets subpoenaed?  Not very likely.  That there may be a problem with the original input and someone went in and changed it to cover their tracks?  Well.  Pretty easy to figure that out.  And you are firing them anyway, so it doesn't matter...

 

I am interested in WHY the administrative policies or forensic reasons for not allowing a return to be saved after the fact.  Policing it is PITA, but why?  I do not like having multiple copies of the same clients info in my ATX Database.  The only exception would be for amended returns.  If I do a tax estimate and use the planner, I save the file.  No big deal to me.  Explain to me why it would be.

 

Rich

[Jack from Ohio]

*I* save the return after the fact when I leave it.  It does not matter to me that the ATX file does not match the info that was sent to the IRS/State.  I have a PDF copy of that information, created at the time of printing and efiling.

 

Some have stated that they have an administrative policy that employee's can not look at old ATX files or change them, that is fine.  But WHY? 

 

The OP Notes that his firm has filed on paper in the past, so there is no PDF copies.  In that case maybe *I* would restrict the ability of employee's to go into old ATX Client files.  But if I have a paper copy of what was done, then it doesn't matter, really.

 

Forensics issues?  That your entire database gets subpoenaed?  Not very likely.  That there may be a problem with the original input and someone went in and changed it to cover their tracks?  Well.  Pretty easy to figure that out.  And you are firing them anyway, so it doesn't matter...

 

I am interested in WHY the administrative policies or forensic reasons for not allowing a return to be saved after the fact.  Policing it is PITA, but why?  I do not like having multiple copies of the same clients info in my ATX Database.  The only exception would be for amended returns.  If I do a tax estimate and use the planner, I save the file.  No big deal to me.  Explain to me why it would be.

 

Rich

And if you have to amend the prior year return you just changed?  If you have questions about what exactly was entered and where? 

 

I am not so cavalier about tax return files, accuracy and purity of information.  If you must "play" with the prior return, duplicate it and play with the duplicate.  I am surprised that your methods have not bitten you yet.

[joanmcq]

I do the same as Rich for clients that I run projections; save after filing. If I am just opening a return to review an entry, then no saving. For amended returns, I always check the 'as originally filed' numbers against the original return, which I keep a paper or PDF copy. This year I believe I will save a preparer copy with all worksheets in PDF to lessen the amount of times I might need to open the program. Having the worksheets gives you all of the data entry, and unless the return is hugely complex, I know what screens I enter numbers.

I don't run too many projections (yet). If I start doing more, I may want to invest in other software, like Tax Tools.

[David W Ristau CPA]

I guess I am missing something here.

Why aren't the preparers being trained that they will be held accountable with job loss if they alter a prior year return.

And why, FredomTax, with multiple preparers in your firm haven't you placed password entry into a return and then at the start of a new tax season CHANGE THE PRIOR YEAR program passwords for EVERY EMPLOYEE? If you change the password and not tell the preparers the new one, I guarantee they will stop and ask what happened and why did you do this and you have another opportunity for quality control training.

And then do not tell anyone what the password is for the prior year without a supervisor request?

.Have each preparer MANUALLY enter the signature dates on the tax returns for clients AND preparer.

Change the status of each return to complete when you receive the e-file acknowledgement.

Use the "hide returns marked complete" option in the Returns manager.

Print all returns to PDF BEFORE printing to a paper printer.

Print the client paper copies from the PDF files, not from the tax program routine.

And don't forget to pester ATX to add bookmarks to the PDFs printed like their nemesis Drake does.

It would be helpful to not have to change each PDF to open in bookmarks index and bookmarks at least on the major stopping points in the PDF.

Seems to me that ATX is simply lazy in not adding the bookmarking protocol to the program.

Or in the organizers, too, for that matter.

I like the idea of changing the colors of prior years to something other than the current year default as a means to remind you the prior year original return is etched in stone.

For over 10 years I have rigorously followed the above steps inside my own office and have had several part time preparers see a light bulb light up over their head in tax season when they have to ask for the new password to open a prior year return and realize that the new password is a stop sign to allow for time to think before jumping irreversibly off a cliff with client return data and simply saving the return when they're done with it..

I have very little trust in ATX backup routines.

I do use import and export frequently rather than relying on a backup routine from ATX.

Especially when upgrading computers and moving datafiles,

Last, but not least, take off the letter date field on the cover letter.

ATX will always insert current date on your letter if you leave that pesky date field in the cover letter when you access the file and it is one of the reasons why the program asks if you want to save the changes you've made when you've accessed a return marked complete.

Better to remove one more source of grief causers from the chain of events, IMO.