CFS TaxTools Software

[Chief]

For those of you who are not familar with this software; it is not a basic tax preparation software like TaxWise, ATX, Drake, TaxSlayer Pro, the Intuit programs and the like. It is an expansion of forms and worksheets and schedules that are usually not included in basic, professional tax return prep software programs.

Bird Legs is the one who really introducted me to this product. There are others in that line but TaxTools seems to be the most popular. For example, I found a worksheet for COMPUTING REPOSSESSION GAIN OF REAL PROPERTY that makes this task fairly simple to do.

In addition there are worksheets and flow charts for:

1) Hiring your dependent child
2) Installment sale income
3) Roth IRA Basis Tracker
4) Loan Calculator Statement
5) Mutual Fund cost basis
6) Occupation Deductions for 11 different types of personnel
includin g Air line, personnel; Day care providers; Direct sellers, Education staff
7) ID Calculator
8) Repossession of personal property
9) Repossession of real property
10) Sale of rental property
11) Social Security: take it at 62 or later?
12) Tax Fee Schdule and Justifier
13) Vacation Home Rental
14) Why invest in a 401K?

This software allows you to build a client file of folders so you may carry over the information from year to year. It is priced like at $180 for 2 years if I read their web information correctly. It is designed to work with Intuit software. If you use it, will it work with other software packages. I know of a preparer in Georgia who keeps asking if they will add Georgia forms and Tax Slayer Pro to their list. No Answer. Bird Legs, what do you know about this issue.

If you use TaxTools, please post on the Board your experiences with it.

[rosieea]

TaxTools is Great, but....

as I have previously posted, their pricing policy leaves much to be desired. They don't bundle anything, so each program must be purchased separately. I have TaxTools, Small Business Tools, Schedule D Tools, and their ATF Payroll. The only bundle is the cost. I.e, it costs a bundle.

[Dale Vaughn]

CFS Software

We've used TaxTools forever, from back in the DOS days (around 1990, I think). We wouldn't function without it. We use TaxTools, Small Business Tools, Schedule D Tools (excellent for mutual funds and stocks), and NYS Sales Tax Preparer. I think the payroll program looks quite good, too, but we have a similarly priced program (AMS's 1099-Etc) that we've used for years, and the conversion would be painful, I expect.

For years we've had a support person who runs each personal return through the TaxTools tax planning module, and compares the results to the actual tax return before the return itself is approved for filing. This greatly reduces our error rate - two sets of eyes, two separate programs. TaxTools was primarily oriented towards California preparers originally, but now has a significant amount of New York forms, which is where we are. I don't believe it supports other states as well for planning purposes. We also do use the planning module for what it is intended - multiple scenarios or multiple years. There are a number of other modules that we use on a nearly daily basis.

All the various programs are very slickly designed for their cost, and are continually improved and added to. The NYS Sales Tax program has been a timesaver for our practice. The letters and filing instructions with the various programs are editable on screen and professional looking, rare for a low cost program.

I do agree with a previous post that bundling would be nice, though I do think the pricing is still reasonable for value received. On the negative side, support is very knowledgable, but extremely arrogant. We picked up on three or four errors in various TaxTools modules this past season, some of which were significant. In all cases, support initially denied the errors, then blamed our lack of experience (remember, we've used the program to check about 1,000 taxes per year for the past 10 plus years), and finally agreed to look at the perceived problem. In every case, the "didn't exist" problem was corrected by an update within two or three days, and support never did get back to us to admit we were right.

Still, in all, I highly recommend the company and its programs.

[John of PA]

Tax Tools: Thumbs Up

I have been using Tax Tools for a long time. I don't use it a lot (because Lacete does more and more as time goes on), but when I do, I really find it helpful. I especially like the flowcharts for, say, H of H filing status or dependency deductions. I have banged out a quick P&L for a client on Tax Tools, and have used the various auto worksheets, and the like-kind exchanges worksheets. I do not use the AFP because it does not do the PA state unemployement report. Overall I like it and recommend it.