Anyone else not looking forward to tax season?

[SaraEA]

At this time I'm usually psyched up for tax season, but not this year.  I've done hours and hours of training and reading, but what's weighing me down is that I don't feel competent in the new tax law. Now when a client calls with a question (can I still claim my kid, should I pay my RE taxes in Dec instead of Jan, should I add up my medical expenses), I used to be able to blurt out the answer and sound like a real professional.  Now there are so many moving parts I'm uneasy about delivering a quick, simple response.  I panicked the other day when I entered some data into the 2018 UT software and went to view the form.  I of course saw the new form and thought "where are my numbers?"  After I enter tax docs, I view the form and check the totals with the originals (add up all the W2s, withholding, bank interest, etc.).  That's how I double check my data entry.  Very fortunately, UT has a new selection to view the first two pages of the 1040 like they used to be, where all the totals are in one place.  I also review the final return with each client.  Right now I don't know where anything is so I'd better practice so I don't seem as confused as they are.

My second biggest fear is that clients won't be getting the refunds they are used to getting.  A bunch gave me their paystubs after the new withholding tables went into effect so I could do projections (who knows how accurate they were since the specs have changed), but most have probably been enjoying their larger paychecks without realizing that now that they are losing their three kids as dependents they may be in trouble.  And I don't want to think about the business owners who believe they won't have to pay tax on 20% of their profits.

[Lee B]

As far as tax season goes, the key issue that I am concerned about is which of my clients that have different kinds of rental properties will qualify for the 20 % PTE deduction 

which clients won't qualify?  Second, due to the partial government shutdown,  Congress is showing no concern or movement toward a TCJA Technical Corrections/Tax Extenders Bill.

Is Qualified Improvement Property 15 years or 39 years ?  

[Yardley CPA]

I think it's going to be a challenging year, for sure.  I'm also concerned about the new tax law, specifically what cbslee mentioned.  The 20% PTE will take some time to get used to and familiar with.  Lets hope it goes smoothly for all of us.  

[BulldogTom]

I think we are all going to need each other on this board this year.   It is going to take some time to get used to they new laws, forms, and software input.

Good luck this season.  

Tom
Modesto, CA

[Roberts]

I'm behind the curve on learning some of these new rules. I've gone through multiple webinars but they just confused me more it seems.

[ETax847]

I agree with a comment above regarding needing to lean on each other for help and guidance.  I'm a solo practitioner, so being able to bounce ideas off you folks and get my questions answered in a timely manner has provided tremendous value to me over the years.  

[mcb39]

Sara could have been reading my mind when she wrote her post.  My reply is "all of the above".  In 40 years I have never felt so inadequate and unprofessional.  Confusion is rampant.  I don't feel ready even though I, too, have been studying and attending classes.  I have many printouts, but it appears that some of the issues we need to address this year have not even been fully enacted.  Even the instructors are unable to instruct.  Let's hope that we can get through this together and with each others help.

[ILLMAS]

I was just a tax training this past weekend and the instructors first words were "RAISE YOUR FEES BY XX%", 200 + people were in agreement.

 

[Catherine]

22 hours ago, Roberts said:

I've gone through multiple webinars but they just confused me more

Form 8275 is our very good friend this year.  If we take positions not supported by final regs (which is a boatload of the new law), that disclosure statement showing why we are taking whatever position we are taking will at least save us from preparer penalties.  "Most closely in alliance as this office could determine with tentative/proposed regulations as of the date of filing" basically means "hey, we did our best considering you dweebs had given us nothing better to go on" only said in a polite fashion.

[BLACK BART]

I want my mama!

[mcb39]

At least they have finally given us a filing date.  Will it hold water and will the software be ready?

[Gail in Virginia]

I am still waiting for the state of Virginia to decide how they are going to handle the federal changes and whether it will affect the tax returns for 2018.  So even if we can file federal by the end of January, I doubt we will be able to file state returns.

[Gail in Virginia]

1 hour ago, Catherine said:

Form 8275 is our very good friend this year.  If we take positions not supported by final regs (which is a boatload of the new law), that disclosure statement showing why we are taking whatever position we are taking will at least save us from preparer penalties.  "Most closely in alliance as this office could determine with tentative/proposed regulations as of the date of filing" basically means "hey, we did our best considering you dweebs had given us nothing better to go on" only said in a polite fashion.

So do we attach an 8275 to every return with rental property because there is not definition under 162 of trade or business?  Whichever way we classify them may be wrong in the end when this is finally clarified (if it ever is).

[TAXMAN]

Last word I saw from VA which deals with Schedule A, They now have their own A but still sticking to what did you do on Federal. Awful lot of clients and TP's going to be real surprised when their state tax bill goes up. 

[Catherine]

6 hours ago, Gail in Virginia said:

So do we attach an 8275 to every return with rental property because there is not definition under 162 of trade or business?  Whichever way we classify them may be wrong in the end when this is finally clarified (if it ever is).

Pretty much (assuming you want to cover your bacon - and who would want to risk bacon, after all?).  

Our state society update spent two hours (non-IRS cont ed) talking about what MA will and will NOT comply with.  Ugh.  They don't take the alimony changes.  They still accept moving expenses with caveats.... it's going to be nasty.

One huge take-away for us ALL is that we are NOT going to be able to just trust our software this year.  Yes, they will do their best.  Yes, they will ALL miss things (different things per state and per s/w package).  We all need to warn clients when they first come in, so they don't yell at us when things take longer.  Extensions will also be our friends.  Even the shutdown; it's yet another reason for the delay in getting answers and seeing state interactions.

[Max W]

Yes! This is going to be a very taxing season.  

[joanmcq]

I took the Gear Up 6 day  Vegas seminar. Got a ton of 199A, still haven’t a clue on GILTI. Teaching a 3 hour update class since the group I’m teaching for can’t count on the IRS practitioner liaison not to be on furlough (he was going to do 2 hours). 

I am going to treat my rentals as QBI.  I think I have a profit this year; I’ll have my books done pretty soon. 

On the other hand, my own books are farther along than they’ve been in years at this point. And my W2s are already issued. 

[scottmcfly]

Referring to the initial post by Sara, does ATX have an option to view the first two pages of the 1040 like they used to be?  The new 1040 design is a HUGE step backward in my opinion.

 

Thanks

[Lynn EA USTCP in Louisiana]

what about looking at the comparison pages, when they become available ?

 

[scottmcfly]

Thank you Lynn.  That's what I will do.

[ETax847]

while it may be more work, i think that means fees will be much higher to hopefully make it worth the extra headaches.  Is anyone charging a fee for schedules 1-6?

[joanmcq]

Atx isn’t giving an option a add fees for the schedules. But I just increased my base 1040 charge by $50

[BulldogTom]

2 hours ago, joanmcq said:

Atx isn’t giving an option a add fees for the schedules. 

Which gets us to the Section 199 deduction.   There will not be a form for it, only a worksheet.   I don't see any way to price it and show it on the invoice.   Anyone have a suggestion?

Tom
Modesto, CA

[Catherine]

7 hours ago, BulldogTom said:

Anyone have a suggestion?

Make Joan's suggestion a $500 fee increase, and discount heavily for clients with no QBI (and less heavily for those with simple QBI) deductions.

[BulldogTom]

I found a way to put it on the invoice, if the worksheet was listed.   But it is not automatic.   You have to go into the worksheets tab on the billing manager and pick the 1040.  All the worksheets for each line should be listed.   But right now, there is nothing listed for line 9, which is where the Section 199 worksheet should go.   I assume that when they release the worksheet, it will pop in to the billing manager.  If not, I am going to have to hand type it in for each client.

I wish I could charge $500 for each client.    Just does not work with my clients.

Tom
Modesto, CA