OT: Making Too Many Mistakes

[geekgirldany]

This is a frustration post:

I do not know what is going on with me lately. I found another mistake I made this year.

I am so frustrated and mad at myself. I found a mistake I made in 2012 on a client's return the other day. These mistakes are what I would consider a person who has been preparing returns for 18 years should not be making. I don't know why I am doing this, if I am getting in a hurry, or what is happening.

The only thing I can think of is getting a check sheet making sure I cover everything while preparing the return. If anyone has one that I could have I would greatly appreciate it.

Again I am embarrassed I am making such mistakes.

[Black Bart]

Stupid mistakes.

Everybody makes 'em. Don't worry about it so much (18 years in the trenches is good - it gets worse with age ).

Try as we may to avoid them, a few should-have-been-obvious blunders slip by from time to time. Best cure for it would be a second set of eyes proof-reading our products, but most of us don't have the time or the money for that. I assume your software has a "error check" but, of course, that doesn't catch just simply forgetting a deduction, transposing/misreading a figure, or leaving off something you or the client know should have been listed. Hurrying is responsible for many boo-boos, but...we usually can't/don't want to slow down. So fix or amend (if you can) whatever problems are big enough or important enough to make you lose sleep; as for the rest remember that time is on your side and the statute of limitations is pretty nearly a preparer's best friend. Unless it'a a huge error, there's about a 98% chance that your mistake will remain buried unless you choose (wisely or unwisely) to unearth it. If it's only a few hundred bucks, the downside of amending usually makes that not worth it to you (loss of confidence or client). You can rationalize that: you've probably stretched some past deductions that he doesn't know about, or occasionally you work on some of his stuff without charge while he wouldn't give you the time of day, or maybe he said your boyfriend's ugly ; whatever - just don't get to thinking clients are a lot holier than thou (and that includes a few preachers I know).

I don't have a check list; ATX has one built in but it's so generic that it doesn't help much (example: "Could taxpayer buy an IRA?", etc.). It seems to me the best cure is to go over returns the next day with a fresh look at the numbers and issues if you have the time.

Embarrassed? Don't be! Anybody who's read your posts knows you're a good preparer. Mistakes? Reading this board is assurance you've got lots of company. Too, most preparers have a few blank spots in their knowledge base - I know I have because one of the resident hotshots here told me so last year. But anyway; chin up and trudge on.

Best regards, BB

[geekgirldany]

Bart thanks for the pep talk. It really helped me so much. I appreciate you taking the time to respond.

I think that is a good idea about looking at the returns the day after they are finished. It will be a fresh look.

I know everyone makes mistakes but I tell you it hurts when it is so obvious. Unfortunately these mistakes are several hundred dollars and more than likely would be picked up.
I do need to slow down and stop being in such a hurry. One person office is hard. Answering phones, people coming in to drop off and pickup. I barely have time to work on the returns.

I've had so many wait until this last week to bring their returns. Up until last week I had done 40 returns out of my regular 130. I've now got about that many in this past week. So just getting stressed I suppose

[Gretel]

Dear Dany, I make stupid mistakes too, too many. Just sticking at this board shows being very much concerned about the clients and doing things right. You probably, just like me, tend to go overboard and expecting too much of you.

I used to wake up sweating at night with a realization that hadn't thought of something important on a tax return. Sometimes it wasn't filed yet and I could correct. Then I tried harder to be more perfect and was constantly under stress. It is impossible to even know 10% of the tax code. Nobody can. Slowly I learned to trust in the universe that anything important will pop in my mind one way or the other and that I can rather rely on that than on just my knowledge and that I am protected that way. This greatly helped me to relax. I also had to be willing to let go of the picture of me to be the perfect tax return preparer and only others make stupid mistakes. Helps to be just human as everybody else.

[Burke]

Unearthing stupid mistakes can be enlightening, causing your checklist to be adjusted. I often find things when I am putting the returns together. Just yesterday, I found that I had deducted mortgage interest on Schedule A as an equity line, when in fact it was interest earned at the bank. It's always Wells Fargo Bank. I hate their forms, they look exactly alike. So I learned to review those very carefully.

[mastertaxguy]

Mistakes or another way to learn....

Ah yes: always RTF, FTI, VTR, and when in doubt RTFM.

This year and last I have worked at different offices, in addition to my own small (less than 100 tax practice. (For those who think I can't hold a job, each office was purchased by the same indivdual who hired me four years ago to "fix" his original non-chain office.) I have observed in each office circumstances and practices which lead to errors either inputting data or, and this is the biggest issue, not understanding what the tax return should look like. These situations apply to both federal, state and local (city) returns. Most of these errors would have been avoided, in my view, by the preparer or reviewer reviewing the completed forms on the computer screen with the taxpayer (assuming they are present) or with the information documents presented if the TP is not available.

Like most of you, about 25% of the new client returns have errors on prior year returns. Often those involved form 5329, itemized deductions, missed or overstated credits or itemized deductions, double entry of expenses for Schedule C and S-corp returns, and so. This applies to CPA prepared returns as well as EA and non-enrolled practitioner returns, chain or non chain.

Often the errors I have seen result from not actually confirming data such as address, phone, dependents etc with the client: the back room is full of pending files and someone just plows through them assuming "everything is the same as last year." (Observe our blog for topics on incorrect addresses, checking accounts and such).

Errors I have seen most often are a few hundred dollars (dependent care credit not computed because both W-2's entered for ONE of the joint taxpayers, for example), or larger amounts (incorrect federal/state w-2 or 1099 withholding, incorrect 1099-R taxable amounts, etc). Most software has the ability to require the preparer to re-enter key data, such as W-2 box 1 and 2, 1099R gross, taxable and withholding, and so on. Seldom does the software require 'confirming entry' on depreciation. Some offices are using scanners to input data from W-2's and 1099's and such so that may help (no personal experience). Scanners and OCR technology, however, are not perfect.

Comparison with prior year returns are helpful, as is a complete interview. The TTB organizaer, for example, particulary pages 1 and 2, is a good guide. Organizers more than four pages are a waste in my view: no one really completes them and when they do, they do their own return and want us to check it for them for free (see other blog posts dealing with this).

Another big issue with long-time preparers is slowing down. The goal should be a correct tax return, not one return of the 7 or 8 done in a given hour. And of course, learn from the 'mistake' and change your practices, checklists, etc. Often I tell clients when we think their return is done that I want to set it aside and review it the next day. This is when I just don't feel right about the return for one or more reasons. Usually morning light often is clearer than evening dusk.

[Redneck]

Mistakes

Own up to them, make corrections and then go on to the next return. That's all you can do. Been in this business 39 years does not get any easier.

[geekgirldany]

Thank you all for posting.

I am glad I have rather understanding clients. The two I had to amend this year said they were just glad I caught before the IRS. I've taken the advice of putting the return away and then looking at it again the day before the client comes. I have in the past caught errors when reviewing the return with the client. I am having more that just want to pick up, sign, and leave. I've also started making more detail notes in Drake and noticed it does have a Check Screen to enter in numbers to compare. I think I just need to recheck before releasing to the client.