HV Ken

So if they download the W-2 directly, how do they meet the requirement of having to maintain a copy of the W-2 ? EROs must retain the following material until the end of the calendar year at the business address from which it originated the return or at a location that allows the ERO to readily access the material as it must be available at the time of IRS request. Copies of Forms W-2, W-2G and 1099-R;

Pub 1345 states "EROs must not electronically file individual income tax returns prior to receiving Form W-2". So tell me how the box stores getting away with this?

Just saw a commercial for one of the box stores advertising they can file a return without the W-2. I thought we weren't allowed to do this. Aren't we supposed to keep a copy of the W-2 along with the signed 8879? Am I missing something?

Perhaps you should consider eliminating/reducing the practice of carrying receivables. We require payment upon delivery of the tax return - payment can be made via cash, check, Fee Collect, or credit card (try to limit CC to those that are not receiving a refund). For monthly engagements, we require payment at the beginning of the month - they don't pay, we don't work! Helps with both cash flow and carrying very little A/R.

In my case, there was one 1099-DIV item that was correctly reported as missing.

Client brought one of these (CP2057) in last week. This came in November for tax year 2011. Shows what the IRS thinks was not reported on the original return. I kinda like this. Rather than waiting two years and sending a different notice where they calculate the tax due, interest, penalties, etc., this one is rather timely sent, is informational, and offers the chance to file an amended return. Is this the IRS being proactive rather than reactive? (rhetorical question)

So this morning I woke up to the song "Piano Man" by Billy Joel on the radio, and I came up with this: Sing me a song I'm the Tax Mann Tell me how you couldn't pay Share me the story of your life And ask me to make your balance due go away Oh, la la la, di de da... Disclaimer: this is just tongue-in-cheek fun - any resemblance to an actual client is completely coincidental!

There has been a tremendous amount of problems with Identify Theft, especially in Florida. But that is not specific to e-file nor its security. One of our clients had a fraudulent return filed with his social security number. Today's thieves are unfortunately very sophisticated. :mad:

The only exception I would consider for filing those past returns before the deadline is if there is a refund contained in 2008. It would be nice to capture that before it expires.

Not sure why so many of you don't charge for extensions - it takes time to generate the efile, to transmit the efile, to process the acknowledgements, etc. If it is due to the clients (missing information, coming late, disorganized, etc.), I charge them - I deserve to be compensated for my time. If it is on my request, I will still charge the extension fee and then apply an equal discount, so the net is no charge to them as it was a convenience to me.

Thanks everyone. Should she be concerned if they bill her for time and/or the entire cost of the tax return? Or let them take her to small claims court?

Potential new small business client (S-corp and 1040) who is very unhappy with current preparer. Called current preparer today to get her papers back and was told they already entered her data (it's now 3/30 and the S-Corp was due 3/15 - they never called her about extension even though she gave them her papers in early Feb - personally I think they are bluffing, but that's irrelevant to my post) and she owes them $1300 before they will give her papers back. I am reading Circular 230, and it says on p22: In general, a practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her Federal tax obligations. and The existence of a dispute over fees generally does not relieve the practitioner of his or her responsibility under this section. Seems clear to me that the current preparer has to return her papers whether she pays the bill or not, and then they can continue to bill her. Am I missing something? Never had to deal with this before. The one time one of our clients asked for their papers back, we just gave them to them.

KC - Covered in NY! May you experience God's peace that passes all understanding.

Picked up a new client with work going back to 1999. The program has come a long way since 1999!

I have found the MFJ vs MFS worksheet to not be very reliable. It is good for a quick glimpse, and if it reveals further analysis is warranted, I duplicate the return two times and use one duplicate for his and the other duplicate for hers. Usually only takes at most 10 minutes to delete the stuff from each duplicate.

Maybe s/he is having an affair ??? HA HA

While I agree it is unusual, I have had that happen once. I couldn't figure out the sequence of events that could have allowed it to happen, but in my case it involved divorced parents and I only had access to one of the parent's information.

Dear Client, I am sorry that you took a $50,000 early distribution from your retirement account and had just 10% taxes withheld to cover the penalty and that you did not consider (or your financial adviser did not explain the tax consequences) the Federal and State taxes on the distribution in addition to the penalty. I feel terrible that you now have a combined tax due that exceeds $10,000 and you don't have the money. Perhaps if you consulted with us prior to taking the distribution, we could have offered you advice to help, strategies, etc. Please stop yelling at me....

Hey - I didn't start my rant to get into a CPA vs. EA debate. Go back and read my original post that started this thread! I have fixed tax returns that were done wrong by both CPAs and EAs. Just fixed one recently that was done by a CPA that apparently didn't seem to know the current dependency rules (took 20yo non-college student child with > 10k wages as dependent on parent's return). So what! A title is a great accomplishment and certainly something to be proud of, but it does not make anyone a lifetime expert. Nor does mere years of experience. Staying current and educated keeps all of us relevant and a source of value to our clients.

jainen - you have no idea how much radio, let alone talk radio, I listen, or don't listen to. And it is totally irrelevant to my original rant! Jumping to conclusions with little information ranks up there with assuming....

We are putting a two-sided sign up in our office. On one side it says "Tax Preparation" and on the other side "Counseling". At $100/hour, the counseling side brings in some nice extra revenue! LOL

I think I would prefer local, but I can imagine the scenario, especially with PaperlessPLUS putting all the documents into one PDF, creating backup files from ATX, and sharing via File Share, how this could be done long distance. If this is something you think is worth pursuing, send me an email to [email protected].

This may be a long shot, but it never hurts to ask! I tried this on craigslist but did not receive any qualified candidates. Are you an experienced tax preparer? Do you have some extra time available? Are you looking to make some additional money during tax season? Busy tax office is bursting out at the seams and is looking for some short-term part-time help. Flexible hours - morning, afternoon, and/or evening. We can work with your existing schedule. We are looking for an experienced preparer who can hit the ground running with minimal supervision. We are looking to fill the position as soon as possible. In addition to your contact information (phone # please), your reply should include your years of experience, the types of returns you have prepared, etc., as well as what hours you have available, how many hours you would be looking for, compensation you would be looking for, etc. Please be as specific as possible. Prefer someone local to the Hudson Valley (Dutchess County and vicinity) , NY

While driving home from a meeting, I was listening to a program on the radio - it was a call in your question to an expert type of program. Caller asked a question about a RMD, and the expert who was on talking about investments replied to the caller that she should contact a CPA for advice. Why is it that everyone thinks the only person who can answer questions about taxes is a CPA? How about instead: contact a CPA, Enrolled Agent, or other competent and qualified tax professional for advice? Thanks for listening to my rant....

Sure thing. Part of it is the product - part of it is the process....