How to Compete???

[peggysioux]

I had taxpayer who had come to me for several years to prepare tax return. He had refi'd personal residence and rental so much that interest on both assets became limited. He stopped coming to me two years ago and lo and behold, he called me to do his return again this year. Last two years, H&R Block handled return. He brought in his 2009 return and interest on both assets was not limited and full payment of registration on vehicles were taken on scheudle A. How can we compete against other tax preparers that don't do their due diligence??? Very frustrating!

[S T]

Agreed Frustrating

I lost two clients this year and one last year, seems they went to Turbo Tax, and it did have to do with the tracing rules and limiting mortgage interest due to so many refinances. Client's said Turbo Tax does not limit - "Duh" garbage in/garbage out.

Maybe if IRS would step up their "audits" on mortgage interest, more of the taxpayers and preparer's would recognize that "not" all mortgage interest is deductible.

I know most of us on the Board try really hard to get it right, however, the rules are slightly complex and tracking is difficult and then try to explain to the Taxpayer

Vehicle Property tax or deductible portion is another item, but at least that amount is a way smaller deduction than the mortgage interest.

Sandy

[ChEAr$]

IRS should step up audits on all "self prepared" returns.

[AZ-Tax]

Here Here....

IRS should step up audits on all "self prepared" returns.

I 100% agree with stepping up going after the self prepared but I understand that the latest budget bill cut out money for IRS. As I mentioned in another post about a suggestion on changing the determination of FMV for non cash donated items. I hear about self prepared TP's all the time "My friend write off his used clothes, used furniture etc. at full price for years and years and years and never got caught" Most likely the IRS will never catch and/or its not worth going after those TP's that is why I suggested there be a change with the FMV method by making the Charity determine the fmv.

[joanmcq]

Yeah, I got one where they asked 'what about all my medical?' I said you had quite a bit, but it didn't get you over the 7.5% haircut. 'What about my insurance?'. Explain pre-tax.

'they deducted it last year at Block'. Doesn't make it right. She agreed at least.

[dtlee]

I had a client who called me at the last minute and made an appointment. I saved her hide twice in the past two years (fixing problems with returns she prepared and correcting how she wanted to prepare her returns), but this ingrate said she called late since she was considering just going back to TurboTax again,

She repeated it twice while I was preparing her return. Then when I showed her the numbers she expected, I think she was convinced more than ever that she was wasting her money on me.

Then I explained the benefits of filing separately in New York in her situation and showed her that if I split her return to two separate returns the right way, she would save over $1,300 (the stupid GPS software only seems to be able to follow one route) at least partly because of large savings on the New York return (which TurboTax ignores).

Next year, I may just not return her call or perhaps I will mail her a copy of TurboTax. I will not attempt to compete on price and I don't need the aggravation.

[Black Bart]

Speaking of T T

I ran across this article by a CPA giving such sage advice as "list all 1099s" and "keep receipts" (thanks for the tips) and was somewhat taken aback by the logo at the end .

http://www.unclefed.com/AuthorsRow/GretaHicks/problems.html

P.S. I think her S-corp audits percentage is off -- .05 (5/100s). Maybe she means .5 (1/2 of one percent)? Could be the editors of course (this stuff's everywhere), or then again, maybe those are the odds nowadays and I should exhume my dead entity.

[Jiggers]

IRS should step up audits on all "self prepared" returns.

Harlan, but that makes sense. Why would they do something like that?

[Black Bart]

Seems a bit much

Harlan, but that makes sense. Why would they do something like that?

to expect though, doesn't it? Ironic that IRS keeps threatening us with "in-office" visits and such while we're the only ones doing things halfway right and a tidal wave of garbage is flowing through the gates of TurboTax and others and being totally ignored.

[DonPriebe]

I ran across this article by a CPA giving such sage advice as "list all 1099s" and "keep receipts" (thanks for the tips) and was somewhat taken aback by the logo at the end .

http://www.unclefed.com/AuthorsRow/GretaHicks/problems.html

That article is not current, it must have been written before 1986 ...

"If I sell a piece of property, I have two years to reinvest the money." Yes, if you sell your primary residence, you have two years to replace that residence with a new primary residence. No, on any other property unless you are involved in a "like kind" exchange or an "involuntary conversation."

[Black Bart]

Updatin' me.

Quote:
"If I sell a piece of property, I have two years to reinvest the money." Yes, if you sell your primary residence, you have two years to replace that residence with a new primary residence. No, on any other property unless you are involved in a "like kind" exchange or an "involuntary conversation."

That article is not current, it must have been written before 1986 ...

Thanx for the tip .

Just kidding, Don -- I didn't even read the thing much other than to catch the irony of a TT ad at the end of a CPA's article.

[dyne]

We should not be concerned with trying to COMPETE. We should simply try to prepare
returns correctly and accurately!

[Davc]

That article is not current, it must have been written before 1986 ...

The page was last modified 4-8-2009.