Yardley CPA

Here's an article from the Journal of Accountancy that provides a summary of some of the tax changes for 2013: http://www.journalofaccountancy.com/Issues/2014/Jan/20138704.htm

Thanks for all the feedback.

Client has small (single owner LLC...Schedule C for both Federal and State) sandwich shop that he has owned for many years. He is selling the business for $50K. My client does not own the building and total assets owned amount to less than $20K. The buyer asked how much of the sale price should be considered goodwill? I have little experience with the sale of businesses, so I am seeking opinions here. I believe all proceeds received by my client should be treated as ordinary income and there is no goodwill. Based on this limited information, I would appreciate your thoughts.

Catherine...my Newsletter subscription is through Tenenz and it is also personalized to with my business information, with a mid-year, fall and winter mailing. My clients are always mentioning the good information they provide. I'll have to look at Tax News and Tips in CA and compare what they offer.

John H...I completely agree with your thoughts about emailing. I also send a calendar (in this case, for year 2014) to each client along with a year-end tax matters news letter. So for me, I have to use the good ole USPS.

Great letter, Taxed.

You don't get much cheaper than that!

I received my 2014 US Master Tax Guide in the mail today. I did renew with ATX earlier in the year and assume this was sent to me as part of my subscription as it has been in the past.

With tax season fast approaching, I'm wondering how many of you send a year-end letter to your clients? I normally send a letter to clients that provides a summary of significant tax changes that have occurred for the year, information they will need to complete their returns, my contact information and holiday wishes. I assume others do this as well and would be interested in seeing sample letters if anyone is willing to share theirs?

MsTabbyKats...I agree with you. I don't know enough to fully advise. I would like to advise on the tax aspects of the questions though and that is where I am seeking feedback.

Hello on this beautiful fall day from the suburbs of Philadelphia. I have two clients who have asked me financial planning questions. I am the first to admit, I am not a financial planner but would like to provide them with my suggestions. Prior to doing that I would appreciate your thoughts on these questions. Here they are: The first set of questions come from a MFJ couple with two young children (3 and 5). I have a question for you that our financial advisor recommended running this by you. My parents willed all the money made from selling of their house to our children for their education . My aunt, the executriux,wants to close out the estate account this month. There is$ 200,000.00 left for the kids. We were hoping to set up (2)- 529 accounts with $60,000 for each child for college. Then an $80,000 SEI managed strategy account(for flexibility) - possible private high school. All of the inheritance taxes have already been paid .Are there any concerns if I would inherit the money initially and then use an" accelerated gift allowance" for up to 5yrs. to go into the 529 plans- 1 time allotment for each child. Can I do that?. What are the tax implications for inheriting $ 200,000.00?. Please let me know what your thoughts are about all of this? The second set of questions come from a MFJ couple in their 60's... 1) This year we sold two houses that Alicia inherited from her mothers estate. One was in her trust and one was not. They were both in her estate. The condo in FL was purchased by her parents for $ 88,000 and we sold it for $ 48,000. Her mother put $ 40,000 in improvements into the condo. Can we claim a loss on the sale? We are wondering what our tax liability is with respect to both houses? 2) We paid a good deal of tax on Alicia's mothers estate even though it was in a trust. We would like you to review our taxes an see if you agree with what was calculated in 2012. 3) I have a 401 K where I work. We would like your ideas on what could be done with the money since I am 60 years old and can take the money out. We wonder if there is a better way for us to invest. 4) We are partners in a rental property. We are paying half the mortgage and taking half the interest and tax payment as credit on our taxes even though our names are not on the mortgage. They are on the deed. We would like to discuss your ideas on how we are handling this arrangement and if we should make a change. I appreciate your thoughts on this.

Jack...please include me. [email protected] Thank you.

I also password protect/encrypt any tax file that I email a client and use Adobe Acrobat. My clients are aware of what their individual password is to open the file. I agree with Randall, I believe it does make clients feel more comfortable; however, the other reason (in addition to state regulations) I password protect the document is to provide some protection should if I send the email to an incorrect email address. I’m happy to report, that’s never happened to me…but in the event I enter the email address incorrectly, the file is somewhat safe and normally cannot be opened by just anyone who receives it.

Jack...for those of us who are not testing the product, it's important for us to know your views. We are relying on what you and the rest of those testing have to offer. Please continue to provide your feedback.

I also have a handful of clients who tend to pay well past an “acceptable” time. Some end up paying the previous year’s balance when they receive their invoice for the current years prep. I don’t make it a habit of allowing this, but sometimes it just happens. That’s going to change and I am also going to follow the advice that has been mentioned in a few of the responses above. I like Catherine’s approach. "No new work can begin until prior year balances are paid off." I’m curious, as a tax preparer; would I be allowed to file a 1099-C to a client who does not pay? For example, if I prepared a client’s 2012 return and after repeated attempts to obtain payment (sending second and third notice invoices) could I file a 1099-C before the end of 2013 for that client? I believe I know the answer is that, as a tax preparer, I am not authorized to file a 1099-C. I recognize there are certain requirements to who can actually file them, but thought I would throw that out there. It certainly would be nice to have the option.

Interesting article... What do you pay for professional tax preparation and filing help? What do you pay your tax preparer to complete and file your tax return? The national average to prepare an itemized Form 1040 with a Schedule A and a state tax return is $246. $246 That's what the National Society of Accountants (NSA) discovered in a recent survey. It's also the latest featured By the Numbers figure. If you have a simple tax situation, $246 probably sounds like a lot more than you want to spend to get your taxes done. That's cool. You have lots of tax preparation and filing options, so find the one that works best for you. But, says the NSA, if a professional tax preparer can catch even one more deduction or credit that you may have missed, the savings could cover the tax pro's fee. "I think most people would say this is worth the money, especially when you think about how long it will take you to do the return," said NSA Executive Vice President John Ams in a statement announcing the organization's biennial survey of tax preparers. The NSA collected the tax prep fee data primarily from owners, principals and partners of "Main Street" companies with an average of more than 26 years of experience. Other forms, rates: If you have simpler filing needs, you'll save, on average, around $100, according to the NSA survey. The average cost to prepare a Form 1040 and state return without itemized deductions is $143. As for other forms, the NSA found the following fees: $205 for a Form 1040 Schedule C (business) $556 for a Form 1065 (partnership) $759 for a Form 1120 (corporation) $717 for a Form 1120S (S corporation) $468 for a Form 1041 (fiduciary) $628 for a Form 990 (tax exempt) $59 for a Form 940 (federal unemployment) $134 for Schedule D (capital gains and losses) $155 for Schedule E (rental income) $185 for Schedule F (farm income) Regional cost differences: And as with the price of all professional services, fees tend to vary by region, firm size, population, and economic strength of an area. The NSA broke out the average tax preparation fee for an itemized Form 1040 with a Schedule A and a state tax return in each U.S. census district: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont = $237 Middle Atlantic: New Jersey, New York and Pennsylvania = $258 South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia = $253 East South Central: Alabama, Kentucky, Mississippi and Tennessee = $279 West South Central: Arkansas, Louisiana, Oklahoma and Texas = $226 East North Central: Illinois, Indiana, Michigan, Ohio and Wisconsin = $225 West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota = $196 Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming = $233 Pacific: Alaska, California, Hawaii, Oregon and Washington = $288 The NSA also notes that nearly 90 percent of accounting firms offer prospective clients a free consultation. Such meetings, says the accounting organization, can be worth well over $100 based on the hourly fees of most tax preparers. Do you use a tax professional? Do the NSA numbers match up with your payment experience? How about you, tax preparers? Are your fees in line with the NSA findings?

Received this in my inbox today: To all of our valued ATX Customers: Your feedback is a critical part of our ongoing effort to improve ATX performance and stability. The information you share with us about your practice and your expectations and needs helps guide our development efforts. We have already had the opportunity to talk with a number of you at trade shows in New York, New Jersey and California. We appreciate your candor and your passion and desire for an improved ATX. We are 100% committed to delivering ATX software you can rely on in your practice. It is, and will remain, our singular focus. Next week we will be in Orlando for the first IRS Forum of the year. A number of our senior executives, including myself, will be in attendance and each of us hope you will take the time to stop by our booth. We will be there to answer your questions and discuss improvements to ATX - those already made and those underway. Most of all, we will be there to listen to you. Respectfully, Rusty Tillman VP, Customer Experience

I completed the survey and included my name and client number. I want them to know who I am and what my feelings are. I rarely complete an "anonymous" survey. If I complete a survey, I want them to know who I am and what my thoughts are. I'd welcome their call or email, seeking further information.

Received this email yesterday afternoon: To all of our valued ATX Customers: We are working hard to ensure that next season ATX software and support meet your expectations. Your input is helping us improve ATX performance. Already, we have invested in improvements and made progress on numerous fronts. Our primary focus is on those issues you have told us are the most critical issues you encountered during tax season. In recent weeks, we have released ATX updates 12.17 and 12.18. The program releases since the end of tax season have focused on the continued software performance improvements critical to you. We encourage you to download the ATX updates through 12.18 to take advantage of the latest program improvements. You can download read the latest release notes by clicking here and download ATX 12.18 by clicking here. We would like to ask you take to few moments to complete a survey that will help us better understand your business and your complete ATX experience. Your feedback is important to us, and your answers will help us make decisions about how we focus our development efforts. You can access the survey by clicking here. The information you have shared with us has been invaluable, and we are going to keep seeking it out. We will continue to use trade shows, one-on-one meetings, phone calls, and Customer Advisory Board meetings to hear from you firsthand about opportunities to improve ATX. Your collective input will be our guide to product innovation and improvement. Thank you for taking the time to help shape the ATX of the future.

Has anyone else received this email that flowed into my inbox yesterday? To all of our valued ATX Customers: For many of you, ATX software did not perform the way you expected during the recent tax season. We regret that the issues you encountered created problems for some of you and tremendous difficulties for others. This is unacceptable to you and it is equally unacceptable to us. You have told us about the issues you had this tax season with our software and our support. We've listened, and we've learned. Your comments are our roadmap to delivering ATX software you can rely on for the 2013 tax season. Our commitment is to improve, and we have already taken steps to deliver improved software and support performance next tax season. Before tax season ended, we began a deep analysis and examination of every aspect of our development and support processes to make sure we do everything we can to deliver tax software that provides the performance and stability you can rely on. That is, and will remain, our singular focus. Our commitment to you starts long before you download our software or receive a program disc, and our commitment to you doesn't end when you complete software installation. Our commitment to you extends to every call you place to Customer Support, every training class you take, and every conversation you have with your Account Representative. Our goal is to be best-in-class in every phase of our relationship with you, and we're investing the time and resources across our entire business to make that happen. ATX has been in the market serving your tax compliance needs for over 20 years. Every year, we have focused on ways to improve the software and the service experience, and we will continue to do so. We are in this for the long haul. We know that you want to hear about what we are doing, and we also know that you need more than words. You need action and proof. We are going to keep you up to date on the improvements that we are making. This is a partnership, and partners talk and listen to each other. So you will continue to hear from us on a regular basis -via e-mail, blog postings and information posted on our website - about the improvements we are making to your 2013 ATX software. Your trust in us is vital, and we intend to earn it back one improvement at a time. Respectfully, Jason Marx President, CCH Small Firm Services

Great info, KC. Thanks for posting.

Received mine today. Doesn't seem to be any sort of "discount" for all the issues. Just providing a 10% savings if you renew by May 31. The letter from the sales rep did speak to some of the issues the program faced this year and their commitment to ensure all will be well with the new release.

Thanks for the info. I'll try that. Appreciate it.

I have a client who had a federal and three states. I efiled the returns. The federal and one of the states were accepted. New Jersey and New York rejected with the following explanation: "The IRS Submission ID referenced in the State Submission Manifest must be present in the e-File database." Anyone have any idea on what this means or how I can correct it. I tried recreating and refilling it...it went through but was rejected again. Thanks!

Dominoes...correct. e-file creates three but only two show up in the e-file manager.