How do you do it?

[JJStephens]

Like many of you, I'm a one-person shop. I try to be conscientious and do a good job and I do a quick self-review of each return. Most of the time it works. But every now and again something will slip through the cracks and I mess up big time.

I just got an e-advert for a $95 'How to Review Tax Returns' system. That got me thinking. Why blow $95 when I've got a million dollar network of colleagues on this board, many of whom could probably write the book?!?! So, how do some of you one-person shop folks do QC reviews?

[RitaB]

Thanks for starting this one, Jerry.

Ok, I generally enter everything on the return, laying the forms and client-provided documents in a stack. Then I start over with the stack and make sure I didn't miss anything. I also look at the prior year return; I keep hard copies of everything. Yes, every form, every piece of paper with anything on it that went on the return. Sometimes they fail to bring a 1099-Int or something. I have one lady that always gets a K-1 late, and she never remembers to wait on it. On clients with college students, I try to list the year and the Education Credit on the inside front cover so I don't take the AOC five times or something like that.

I still goof up. A client brought in a letter for 2011, she had four W-2's that year, and I gave her husband credit for one of hers. I didn't even notice that there was an incorrect credit on the return for excess SS withheld. I explained what happened, apologized, double checked that 2012 was ok, gave them a check for the interest charged. She understood, and we had a nice chat. It happens. I still hate it when it does.

[michaelmars]

I do a quick input sheet from the prior year, listing all the 1099's and k-1's etc. Then I write down the current year data.

usually the next day I input the return from the original data with a fresh set of eyes. I then compare the major totals ie wages, fwt, int, div to the amounts I wrote down.

[Mr. Pencil]

how do some of you one-person shop folks do QC reviews?

The way I used to do it, and still occasionally partly do, is run a check-tape from source documents to see if I get the same answer as the computer. Later, when software got better, I paid more to be sure I had a program with very robust diagnostics. I then began printing draft copies and worksheets, and checking off EVERY item of data entry with a colored pencil, on the actual source document and on the printout.

Those actions still fall short, however, in a couple of ways. First, if (i.e., when) I misread a number, I might still see it the same way the next time. And if (i.e., when) I get the theory wrong, I get it wrong. So a few years ago I gave up my solo practice and merged with a local firm that puts two colored pencils on every return.

[MsTabbyKats]

I proofread....a few times.

I have an occasional goof...but usually on states/locals (that I'm not familiar with).

In 2011 a client didn't give me a 1099-R. (But she inundated me with junk/other papers...which included a 0 balance in a retirment account. I should have paid attention to her junk.).

The IRS caught up with it a few months ago....and she reinforced that she gave me the statement with the $0 balance.

[Lion EA]

I always try to sleep on it and proofread the next day or another day. My software has great diagnostics as well as worksheets, statements, white papers, etc. So, I double check all source documents and client info against the white papers as well as the return/schedules. I use the two-year comparison feature to note any differences and explore those, or check when I was expecting a difference (child turned 17 or spouse stopped working or...). I've called my husband in to help me proofread. Once in a while I run a tape or export to Excel where I can add subtotals or rearrange or whatever helps me follow the flow from original documents to return. My software helps me match to original documents by its whitepapers and also options, such as as-entered order good for multiple statements, 1099-Bs or whatever, or another choice such as alphabetical if that was the order the gain/loss statement used, for instance.

I missed one a few years ago when a big investor had less interest than the prior year (only $11,000 instead of $60,000). She was clueless as she had managed accounts. The account assistants insisted on three dates that they sold many bonds that year -- which did match her 1099-B -- and they'd sent me all her interest. I'd prepared her return from paperwork and spreadsheets provider by those assistants. I didn't print until client came in with her original paperwork, still in their mailing envelopes. Still just a small amount of interest. Signed and efiled. A few months later an IRS letter for $45,000 missing interest. Back to the broker who found another bond account that was never sent to me or our mutual client. Some investments had been rearranged and accounts renumbered after she started drawing on her IRA. I now have all her account numbers listed in her folder and the nicknames the brokerage uses to refer to them. At least I'm good until they merge and change computer systems and reorganize my client's investments!

[BulldogTom]

I do most of my returns face to face. I go over every line item in the return with the client and explain what the number relates to. Most errors are caught right there. It is the returns that someone sends in and I don't get to go over that cause me trouble. I try to have the wife look them over for me and vice versa for her returns that are not in person.

Things still slip through. It happens, you deal with it honestly, and the client makes up their mind if they are satisfied with your service or not. Usually they stay.

Tom

Hollister, CA

[Pacun]

Most of my clients have more than one W-2 and very, very few have 1099-Rs. So, before I work on a return, my friend adds up all boxes 1, 2 and 17 using Excel. I get a hand written note with totals. I enter the info on the computer from their forms and if the grand totals match, I don't waste time checking that again. If the amounts don't match, I recheck my entry and I quietly fix any mistakes I made. If the mistake is on the paper, I ask my friend to double check the numbers until they match. It is interesting to see that most of the time, she thinks that she didn't make a mistake and gives me back the same amount. (As Mr. Pencil said, you most likely will see it the same way the second time). When she is not in the office, I add them up by hand myself and then I scramble the W-2s and I start entering on the computer. Sometimes, I add unemployment forms and I check the AGI against what she wrote down.

If you think I have a second pair of eyes in the office, you will be surprised. I am happy when she only makes 3 mistake on every 10 clients. The good thing is that she makes the mistakes on her hand written piece of paper.

[Lion EA]

I go over the returns with the client when they come in to discuss, sign, pay, and pick-up. So, sometimes I catch something then or client does; but I really try NOT to have mistakes discovered with the client sitting here. My proofreading takes place before they come to pick-up.

[Lee B]

Like Lion, I usually put the return to one side, then I review it the next day by double checking every number on the

original documentation against the return. I use the Tax Organizer to make sure I didn't leave something out or the client

forgot to give me something, even with those clients who won't fill out the organizer.

[Catherine]

Over the years I have found that if I proof-read too soon after finishing a return, I see what I expect and not what is there. So now I leave at least two days between completion and proof-reading.

I use an online indexing software (Gruntworx) that takes all the originals and puts them in a pdf with all w-2s together, all 1099-int, etc. Together with Tic, Tie, and Calculate (an Adobe Acrobat add-on) I can put check-marks on every item entered, mark pages as complete, put cross links from one page to another, etc. So when I go to do my proof-reading, I go back down the list of all the documents in the pdf. I also check the notes I made during the interview, and with the breakout lists from the prior-year return. Lots of my emails to clients read, "Last year you had bank interest from Bank of America and Metro Credit Union; this year all I see is Metro. What happened to your BOA account -- any interest; closed it; other?"

Still, things slip by; sometimes me and sometimes the client. I've had more than one pickup where the client said some variant of "But where is my X?" and my response is "What X?" And when we go back through the original docs given, it's not there.

One person noted above a W-2 coded to the wrong spouse; I did that a couple years ago and also missed the "overpaid" socsec credit. Last year, missed some unemployment (not much, thankfully) that was coded for the right state but did NOT turn up on the state return - I think that was an ATX programming problem as it was relatively early, before lots of the glitches got fixed. But I still missed it.

[Jack from Ohio]

Any client that is not understanding of a non-intentional mistake by a professional does not deserve our professional assistance.

Show me anyone who has not simply made an error from time to time??

[MsTabbyKats]

Any client that is not understanding of a non-intentional mistake by a professional does not deserve our professional assistance.

Show me anyone who has not simply made an error from time to time??

I don't know about that.......

Think of your doctor making a non-intentional mistake.

I know everyone makes mistakes.....but I get really turned off when my broker/banker/any financial person I use screws up.

One of the reasons that I strongly discourage face to face returns is that I make mistakes due to distraction or get a bit flustered if I can't find where to make an entry or something doesn't flow.

[Jack from Ohio]

I don't know about that.......

Think of your doctor making a non-intentional mistake.

I know everyone makes mistakes.....but I get really turned off when my broker/banker/any financial person I use screws up.

One of the reasons that I strongly discourage face to face returns is that I make mistakes due to distraction or get a bit flustered if I can't find where to make an entry or something doesn't flow.

There are NO perfect humans. To expect perfection from someone and not be able to be perfect yourself is total hypocrisy.

Intentional carelessness, neglect or indifference is a different matter.

Doctors are human and diagnosing and treating another human body is an art, not a science.

[MsTabbyKats]

Jack

Of course there are no perfect humans. But, when you limit your load and avoid known pitfalls the chance of screwing up diminishes.

I know the areas where I goof (face to face, PA local). I also know if my husband is here, he will talk to me about nonsense, and I lose focus....so I send him away or stop working.

I also waste way too much time proof reading.

When I do make mistakes I start to question my mental abilities (age...just got Medicare card).....and tell myself that I need to focus or slow down.