rfassett

I was "way underpricing" about 30% of my clients several years ago and realized that I was literally working myself to death and not making any money. I sent a letter to those 30% after the filing season telling them that their fee the next year would at least double. They could pay the fee and continue our relationship or they could find another preparer that could satisfy their need at the lower rate - either way they would not hurt my feelings. About a third stayed and remain good clients and the others chose to leave. So I worked less hard for nearly the same amount of money. From that point, I purposed to get my complete fee structure to a respectable point. So I systematically increased my minimum fee over a period of about 8 years to where it is today. And every year, I raise every tax client (well, not every every client), a minimum of the cost of living increase but more likely 2 to 5% more than that. And I never apologize for my fees. As some of the others have said, stay with the software you have comfort with and bump up your fees to pay for it.

Agree with Rich. I have done it that way for a number of years - well, not the same fact pattern. And it always resulted in a CP2000. And was easily remedied after the first year (our was a multi-year installment sale that the purchaser insisted upon putting the number in box 7). After we got the IRS to listen the first year, it was just a matter of changing the dates on the letter year after year. Client thought I walked on water because the CP 2000 reflected high five figure liability every year and when I was done it was zero. That guy never will go anywhere else. Use your skills as a marketing mechanism.

I am on the porch swing right now - I may not move from this spot for several hours.

Lion, I will not be anywhere near the office or a client for four days. Frankly, I would be fearful of what I might say, even if only in body language. Good luck tomorrow.

We closed the office at 10:30 (instead of 10 only because we had to wait for the Schwan man.) Then went to lunch, shopped for some pond supplies and I just got up from the first of what should be several naps over the next several days. Catherine, I am all about that!

But not nearly as much fun! Or stress relieving!

We have had six returns dropped off today so far. I have e-filed the last one for this season. And we should be able to put a sign on the door and be gone by 10:00 tomorrow morning. Frankly, at this point, I am wondering why we are coming in at all.

Good for you! If we would ALL start doing this, maybe they would get the message. And for the record, it is not just CCH. Thomson does it as well. And not just Thomson and CCH and not just the phone. I had a young lady walk in the front door last week distributing political pamphlets. I ran her out and heard her say something about her dad used to be in the tax business and so she understood. Look at the sign out front first next time sweet heart. Guess who isn't getting my vote! And that was my "be nice day" last week.

And then there was this one yesterday. Client owns an over-the-road trucking business. Had two drivers last year (his two sons). Made decent money last year, no estimates and now owes tax. Expecting to generate similar revenue, he thought he would be able to pay the tax. Since the return was done several weeks ago, one son got a DUI so he can not drive for a year; other son got a better job and left; taxpayer decides he will drive and then hurts his back; so now they are going to sell the horse to pay the taxes and the horse died before it could be sold. Not laughable, but I could not help myself.

Client just called. His return has been done and awaiting pickup for several weeks. "I am on my way. Just wanted to let you know that I just got a flat tire on the way there. While I was changing the tire, I bent over and my shorts ripped. So now I have to stop at Walmart before I come to see you." How do we look some of these people in the eye?

Well, probably less interrupted than some. My staff does a great job of filtering my calls this time of year. But the day was not without interruptions. I have my share of "selling" the return interruptions. One today - "why do I owe so much state tax". Because your brokerage statement shows $15,000 of interest income. So a half hour later and an extended call to the broker, we were right back where we started with waiting for him to sign the 8879. He did. Paid me. And I was back to work on the other returns. Several occurrences like that today - but that was the most time consuming.

I have gone a day over when I thought I could be done but the staff kicked in today to prepare the 100+ extensions allowing me to complete a 1065 and the two partners returns, an 1120S and the two shareholders returns and another semi-complicated 1040 today. Now I have one that I am committed to completing by tomorrow mid-morning. I know I have everything because I have three paper-size boxes full of the info. Two complicated Schedule C's and a new mobile park business. This could go deep into the night. But then I will be done. E-file some returns in the morning, finalize the extensions - and then I will close the book on Tax Season 2015. Hope you all are as close or closer!

The 403 contribution is taxed in PA. The LS in box 14 is actually LST (Local Services Tax) which is a Schedule A deduction. Not familiar with 14D in box 14 nor understand why moving expense reimbursement is in box 12. But your biggest difference is in the 403. Just off the 403, the PA wages should be $3,000 higher than the box 1 wages. Box 3 should be closer to the PA wages.

Does box 16 come close to box 3? Is there an entry in box 12?

This is how our calls for pick up go: My staff: Hello client. Ron has completed your tax return. Ron's fee is $XXX. Would you like to know how the return came out? Client: Yes. My staff. OK - Ron's fee is $XXX. You are getting a refund (or you owe) (and then the staff runs down all the numbers and then my staff says) and Ron's fee is $XXX. So by this time, we have impressed upon the client that the fee is important to us. At the end of the call my staff says, Don't forget to bring Ron's check when you come to get your return. Actually had one client call back this year after that dialog and asked if Ron takes cash. Duh! It is all about training the client. This may come a little easier for me and my staff because my first degree was in marketing and I spent a number of years in sales before going back to school to get my master's of tax degree. In sales, closing the deal is not an option.

We expect payment when the return is picked up or before it is mailed to the client. Of course that does not always happen. But we do expect payment before the return is e-filed. Now that is not to say that we are not compassionate. I will give my services away, if necessary, for a long time client that falls on non-self caused hard time. An example for that - I have a long time client that has fallen on financial hard times due to drinking and gambling. I will not do any work for him before being paid. (In fact, just received an email from him this morning requesting services with a promise to pay. Nope.) On the other hand, I have clients that have fallen on financial hard times due to serious illnesses, for example - and I do not expect ANY payment from them. But the run of the mill, every day client, we get paid over 95% of our fees before the return ever leaves the office. About two a year though seem to fall through the cracks and I end up chasing their $200 for six or eight months. That is more of a nuisance and a principle of the thing. They do not do that to me a second time.

Some clients just have it all figured out. My elderly gentleman this week neither asked to dance nor gave me a CB gift certificate; but learned from my staff for the first time that I have a pacemaker. He immediately got up from the front desk where he was checking out , marched right back to my office, laid hands on me and proceeded to pray. When he was done he said, "you are going to make it, I have it from good authority that He's not ready for you yet". And with that, he left.

I just moved a pile of papers and found an unopened box of peeps that I didn't know were there. How cool is that? Wonder what else is lurking under that sea of sliced trees.

Sounds to me like we are all getting just a tad testy. I told my staff earlier today - screw the concealed weapon crap. For the next five days I am strapping that thing on where EVERY one can see it. Go ahead, punk, make my day!

I will spend most of the day on Veranda Beach. One of my all time favorite places for R & R. I will have a couple of good books, some cool refreshments, take a couple of naps and enjoy the scenery and tranquility.

65 degrees, partly cloudy and no tax returns Sounds pretty inviting to me!

Finished one yesterday - a Schedule C whose gross was up $40,000 to nearly $200,000 and his net was up $30,000. We called him to tell him he owed another 5 grand and he had an absolute melt-down. You would have thought that we had just shot his dog. And that was AFTER we had explained everything to him - comparing last years numbers etc. We had reason to call him again about six hours later on a different issue and he was still involved with his meltdown. Let it go man. And for the record, I have offered this guy multiple tax planning sessions over the years - but he is either too busy or just does not care. I am sensing he is starting to care.

I just did. I cleaned out all of my cache and took it to the bank. Love you too, RitaB.

The last one we did, which I believe was a couple weeks ago, went through with no issues. I do remember, however, we were requesting multiple EIN's that day and we reached our quota and were told we could not get any more that day. Went back in and got the last one the next morning without issue. You might want to try another browser or clean out you cache.

I just wanted to express my appreciation for ALL of you. Thanks for being there this season. I am better for the time that we have spent together. This has been a tough season for most of us - but it was made more tolerable by all of you! I am getting real close to kicking it in coast mode with 42 returns to complete by the end of the day Sunday! The confirmed extension pile has just gone over 100 - and they are still coming in. Woohoo!