RitaB

Yes, the pain of stopping short is worse than the pain of falling short. - My Preacher Buddy

Abby, you know I love you. And I'm just a "mom" organization. But I love file folders, sharpies, labels, sticky notes. I also spent a good chunk on hum dinger presentation folders and it makes me happy. It makes me happy to pull out a file when a client comes in with a question, and I can show them my notes of the phone call we had a month ago that might as well have been with Kim the Young'Un cause they recall ZERO of what we discussed. There's room for all us. Merica. (I'm also not deleting my data files and am not sure how that rumor got started...)

Plus, thieves are too lazy to get my files out of the cabinets. It's a lot of work. They're cumbersome. Cursive is a brilliant extra measure to safeguard against that one go getter with a strong back. Nice, John. I love it.

What if you tell them you work till 3:00 and they stay in your hair till 3:10? Can I toss paper at them? How about ink? Wow, I am so lazy in the off season I am totally hijacking this thread right now and then going home.

Respectfully, I investigate paper copies every time a new client hands me a prior year return. If I find a error, I can fix it.

I agree. His basis is $37,000 after he pays the tax on the grant money. Agricultural fences are normally depreciated over seven years in farm businesses. And he does not have a farm business until he has a farm business. If you find out he already does have a business, the $37,000 belongs on the appropriate schedule or form: Schedule E, Schedule F, Form 4835, etc.

Line 21. The Department of Agriculture (we) gave him $37,000 in "other income". Just like winning a prize at the county fair only more like winning 37,000 prizes. Also like having $37,000 in credit card debt cancelled.

Yes. Great question. I'm looking at a CP2000 right now and under "Next Steps" it says, "If you are making other changes, we recommend you file an amended return (Form 1040X), write 'CP2000' on the top of and attach it behind your completed Response form." I have read a lot of discussions where tax pros were unbending on the never file a 1040X in response to a CP2000. I am convinced there are times that it is absolutely necessary, and if it causes more work for IRS that is absolutely not my concern. I'm not going to try explain changes and hope they figure the tax correctly. No way. Plus I either have to do a 1040X or redo the return to know what the tax is myself. Might as well show IRS and not be sitting around for months hoping for the best.

Absolutely. In fact, she said the RETAIL price at Macy's and Nordstrom's is about $600. I told her print proof that it's the exact same purse and I'll adjust Line 21 so that you pay tax on what the thing is really "worth". She really is quite sharp. I was afraid to tell you I saw two unicorns in one day...

Hahaha I just got off the phone with a lady that won a purse from TN Lottery, valued at $1300. She asked me what the tax would be before she sent in the W-9. She was smart enough to know she wasn't sending that form in if she couldn't make anything reselling that purse. I almost cried. I may need mental help myself.

If I had a nickel...

I did hear something in a ethics course, I think from APlusCPE, that still seems profound to me. The presenter said, "Never underestimate your client's intelligence. Always underestimate your client's knowledge." That's so good. We often have situations where the clients know zero, but they're not stupid. We just need to be good teachers. Most other courses make my ears bleed and I think oh, come on, just do your job and treat people well and record a credit for me already.

The last one I suffered through was a retail venture with two high maintenance bored ladies. I discouraged them from setting up a partnership. A lot. But they acted like I would do the bookkeeping, so how bad could it be? Well, guess what? High maintenance bored ladies need manicures and stuff like that more than bookkeeping as it turns out. Pssshh. we have a computer we'll just keep these little ole books do you love my glitter nail? Yes, six months. The "we're sorta partners" dufus guy came in about a month ago asking about bookkeeping fees. He was all of 120 pounds, and they were opening a security agency. He looked like he's never had a bank account. You know that look. And you know, 120 pounds. I wanted to give him half my sandwich. Sorry I'm all booked up, but good luck! I hope he was the brains of the outfit and the other guy at least weighed more than me.

Line 61. See, that was a schmuck thing right there.

And I bet they don't. So we all look like incompetent schmucks compared to the preparers who advised all their clients owing SRP to ignore the question on line 65. And some days I feel like one, too.

So much to say. So little time to edit.

Then I'd fall on my sword and do my best begging for waivers. Absolutely.

Well, I'm not experiencing this problem either. Thankfully. I did have three partnerships that I warned by e-mail in January about the new deadline, printed their acknowledgements of the new deadline and intentions to file on time, and then I got them extensions. Got the returns done around April 1 as usual. I don't think clients filing late should count on penalty waivers. I'd say pay up and hope for a refund. If I had not known about the new deadline, or if I knew about it and failed to get them an extension, yes, I'd pay the penalty.

I agree. And I feel this way about anybody skating on debts they owe. It's a real kick in the teeth for people who do what they are supposed to do and when they are supposed to do it. Someone pays for those who don't. Every time.

$24. But my house cost $99.13 a foot and yours cost $426.83, so I get that you have to charge more.

Yes, I see this as the biggest problem I have in business. It's frustrating. I got 15 new clients this year, newcomers to the area, all with errors on their 2015 returns. Yes, all. Only one has received a letter, and her problem was a 1099-R that was left off the return. The 1099-R was missing from her paperwork, however, she did include a brokerage statement that showed it. I might have missed that one, too. The other errors were from carelessness or intentional fudging or lack of expertise. And you know what? They will never get a letter. It's easier to be careless, or fudge, or be inept. They can charge less because they "work" faster. And if they're REALLY into fudging, they can charge more. The honor system is tough on honorable people sometimes.

Oh, I never said I was satisfied with what I make. I know I'm worth more. But you can only make what people will pay. If you can't get the client, you don't get any money. I'll take decent money over no money. And I make very decent money. No, I don't take every job. I turned away a bookkeeping client last week because I figured it would be a hassle every time I turned around and they would be in business about twelve long, miserable months. Six if I was lucky. There are too many preparers (here anyway), and the risk of getting caught preparing crappy returns is, well, about zero. You can charge what people will pay you to solve a problem. If crappy returns are not a problem, and If a great number of people actually prefer a crappy return, well, it's crappy for your bottom line. Plus, it doesn't take a genius to do taxes anymore, they say, so there's that. You know what would happen if there were twice as many doctors, and twice as many lawyers? Yep. Medical care and legal work would cost less. It's just what happens with competition.

That is absolutely something to consider. It's definitely all relative. I did Google searches for median home values in Fairfield County, CT and Crossville, TN. The top hits show that the numbers are $535,600 there compared to $90,800 here. It's different here - I love my low cost of living town, and I don't struggle. I do love to work, and I do like to get the business I want. My house cost $342,000 and it's paid for. I'm doing ok.

This is why I love you, Tom. Yes, I'm as good or better than whomever told him $185. But he couldn't tell that from a ten-minute conversation. None of them can. I didn't even get a chance to hug him. They don't know what they don't know. Maybe he went to Tammy's X-Treme Tax Returns and she put 60,000 miles on Form 2106 or totally missed a mutual fund sale, and he'll get audited, and I'll see him again... Thanks, I'm talking myself into not kicking myself, Tom.

I am still kicking myself over bidding too high on a guy that came in February, BB. He was very disorganized, had several mutual fund sales, retirement, W-2, wife had SS benefits and retirement, eight or so entries on Sch B. Not a difficult return for a tax person, impossible for a DIYer. I padded it a little (for me, I know, not for most of you) and told him $225 and didn't see him again. He was well dressed and had a good job. It would have taken a little time getting him set up, but the returns would have been much faster in future years. A good client. No begging for accurate expenses and all the income, no proving these are your kids, etc.