SFA

Lion EA made skydiving look like something I should put on my bucket list . . . for some day, not today, and tomorrow I'm pretty busy!

Several weeks ago, I saved and posted a new topic twice. Ended up with two identical new topics. Didn't realize what I had done until it was too late. Needed help at the Admin level to straighten that one out.

They already have the client list. They match PTIN numbers to tax returns. I was told this by an agent several years ago.

MsTabbyKats, looks like we have all been attending the same IRS pep talk seminars. I will not be turned into a government law enforcement officer until they put me on their payroll. I am an income tax preparer. Over the past years, something is shifting in their treatment of our profession. We are now working under constant threat of severe penalties, suspension of our PTIN, and disgrace. Since the sophistication of computer technology, the tax laws have become so crazy, that even professionals will arrive at different outcomes when preparing the exact same tax return. Sometimes we are at the mercy of the quality of the tax prep software that we purchase. We have an adversarial relationship with the IRS and now our clients. I can remember when kids didn't have SS numbers; I prepared returns with a pencil and calculator; i had a wall of reference books with weekly replacement pages sent to keep them updated;I would call the IRS help centers and their answers were usually flat out wrong. And it was all kinda fun. I did fewer returns, but made more money per return. To be profitable today, we must operate like a factory. Don't get me wrong, we still find ways to have fun, enjoy our clients and take pride in our work. It helps to have a network of peers who understand the pressure and offer real solutions to problem situations. That's what I find here. I will continue to fight the good fight. Bring it on!

I wish I could receive credit for everything that I have learned from reading these forums and for all the research that I do on my own.

Been working self-study courses all weekend, and live webinars today. Still need a few more . . .

He was unemployed but billing approx $5,000 as side income.

Lion, thank you for thinking of us. Yes, we are now working on "Plan B." I have two interviews coming in on Wednesday. Good prospects for payroll, basic bookkeeping and basic 1040 returns. If either or both of them work out, hopefully, we have enough other preparers to handle the more complex returns. FYI, the CPA was in his late 50's. After mulling over the outcome, I know it worked out for the best. We had made him a VERY good offer to join us full time and incentive to bring his small client list with him. His billings were less than $5,000. Initially he accepted, but then backtracked on bringing his clients to the table. So for the sake of $5,000 on the side, he turned down a full-time position with us. Oh well, we have moved on.

The Mines Press has some nice folders that we use. An order of 100 is $.87 (current promo offer), per folder for their "success" tax folders. www.minespress.com We do not order pre-printed, just put an insert into the business card window. There are 7 designs to chose from.

Good advice Easytax. We need to be careful not to cross the line into the legal field. There are plenty of horror stories and lawsuits that should remind us that there is a boundary line that should be respected. It is easy to get sucked into these bunny trails and end up being blamed for the outcome. Even so, sometimes, I am willing to take some risks and generally am difficult to intimidate. When we discuss these topics, of course we don't have all the info. That's the fun of weighing in. It's not my client we are talking about! On this forum, there are no consequences for chiming in! (Except for the embarrassment of being dead wrong)

If both spouses received a 1099-C for the same amount, is there a mechanism to "nominee" half of it to the other? The IRS should not be collecting tax on the same amount twice? Am not at the office, and am on the go today, but will be looking this up on Monday.

Mr. Pencil brings up a good point. As advocates for our clients, we sometimes focus on only one side of the situation. While this can be a good thing, after all, they are the one who is paying our fees, it can still be healthy to step back and see a bigger picture. When we make a mistake, it is easy to look for others to blame--or to pick up the tab. The attorney did not buy the car, or sign the purchase papers. The attorney cannot override tax law by writing a divorce document. Divorces are messy, expensive and rarely perfect. Having said that, I will remember this scenario in future situations with divorcing clients. Find out the options on removing a spouse from the financing of vehicle and other loans BEFORE final papers are signed. Actually, sounds like one of the steps in Divorce 101. The more I think about this, I would be making a call to the attorney and he would be getting a pep talk and some pressure to track down the ex-spouse and help with the recovery (at no charge).

Another aspect. When my current employees are out and about, they should be proud enough of working for this office, to promote goodwill and perhaps attract and bring new clients to our office. Our employees can be rainmakers if they are committed to the practice.

Also, the comment that he put his residence into the trust . . . did he then continue to live in it and pay rent to the trust? The plot thickens!

Hmmm. I've been hoping for some more action on this topic as well. How has the trust been taxed? Grantor-type trust? Simple? Complex? What are the provisions in the trust instrument that control the rules for distributions to beneficiaries? How was the property transferred to the trust when it was formed? Was a gitf tax return prepared by the grantor when the irrevocable funding of the trust took place? Have the trust assets been included in the estate? I don't know by what authority a Trust can make "gifts," of the corpus, instead of "distributions." Big difference in my understanding. Who is the trustee? More information is needed. Take your time and research fully.

Loved this video, but then had to view some of other related videos. Took me 15 minutes to leave the site!

Thank you for your input. Finding a good employee is not easy for a small seasonal business in our profession. To handle the higher end business clients, we need accounting and tax credentials. Unfortunately, it is not easy to offer some of our employees year-round work, so what to do. Many of the people who chose the profession of taxes, I find to be somewhat eccentric. Because of that, I am usually open to accommodate some quirks. What kid grows up and dreams of being an income tax preparer? I know I didn't. I wanted to ride horses for a living! He can do the work. I like him. But, I believe starting out with an employee, who has clearly established a side business, is a relationship doomed for failure. I also think our other employees will be encouraged to cultivate side "clients" as well. I agree. While tempted, he is not the right one for our office. Again, thank you for helping me to sort this out.

I know that many of you prepare tax returns for an employer, but also prepare tax returns as a side business, so this may be a touchy topic. But here goes . . . Today I interviewed a CPA who has a small income tax practice, but has answered a help wanted ad that our firm has placed. He has a website and is actively seeking to expand his own income tax prep business. Am wondering what the atxcommunity has to say on this subject. Should I consider hiring him or not?

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.

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."

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?

For me it is also computer "screen" eye fatigue. However, the word search feature really helps to dial into the reference points of my subject. That's when I hit print!

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?

5th grade. I remember people crying and even classmates crying--it was contagious. Then time was suspended while we watched the replay over and over again.

breaks my heart.