Do it your selfers

[geekgirldany]

I had one person call wanting me to tell them how to fill in TT for a 1099-MISC they received. I said I didn't know anything about the program and couldn't help them. I got "don't you use TT to prepare taxes". I said no I use a professional tax program.

Another one wanted to bring by his laptop for me to show him how to do his 1120S on TT. He said he would pay me what I charge to prepare one. I told him no I wouldn't do it. That is the strangest one I've got. I didn't even know TT had software for 1120S returns.

I was talking to a lady at the bank one day. I started talking about being a accountant. She said they stopped taking their taxes to the CPA because he was charging $300 for a simple return. All they have is retirement income. She said it took her husband 4 hours to prepare the taxes but he got it done. I just told her the amount she is paying the CPA, EA, tax preparer is for their experience in addition to the actual preparation of the return. She said she had never thought of it that way.

[taxmandan]

TT for S-corps

Another one wanted to bring by his laptop for me to show him how to do his 1120S on TT. He said he would pay me what I charge to prepare one. I told him no I wouldn't do it. That is the strangest one I've got. I didn't even know TT had software for 1120S returns.

They do, I had the same happen to me last year. Guy had prepared his single owner S-Corp return and asked me to review it. I did, and he actually had it done right. He more or less did everything the same as the previous year's return which had been done by a tax professional, different numbers but a very uncomplicated return. Had it been a more complex type of return, I might not have taken the time but he did pay enough to make it worth my time.

Daniel

[Jiggers]

Paid Preparer?

They do, I had the same happen to me last year. Guy had prepared his single owner S-Corp return and asked me to review it. I did, and he actually had it done right. He more or less did everything the same as the previous year's return which had been done by a tax professional, different numbers but a very uncomplicated return. Had it been a more complex type of return, I might not have taken the time but he did pay enough to make it worth my time.

Daniel

If he paid you, are you considered the "Paid Preparer"? For preparer penalties?

[sea-tax]

If he paid you, are you considered the "Paid Preparer"? For preparer penalties?

Jiggers exactly the point I was going to make!

I get these types calling from time to time want me to just calculate the shc d , or sch e or whatever. I simply say no, nothing good can come from me preparing or simply advising on one portion of a return that has implications on other parts. The simple fact is that if the IRS comes looking the Client will be pointing the finger directly at me.
So my policy is I get it all or none and I am ok with either option. Just too much risk with these types of engagements.

[Luis Mopeo]

Jiggers exactly the point I was going to make!

I get these types calling from time to time want me to just calculate the shc d , or sch e or whatever. I simply say no, nothing good can come from me preparing or simply advising on one portion of a return that has implications on other parts. The simple fact is that if the IRS comes looking the Client will be pointing the finger directly at me.
So my policy is I get it all or none and I am ok with either option. Just too much risk with these types of engagements.

Absolutely right. Think it through. What do you do if you reveiw a return for a fee and find an error or errors on it?

Reviewing a return and agreeing to review the return and fix any errors are two different things. You'll get to the point where you've performed the work you agreed to (reviewing the return). You find an error. The client is then going to expect you to (1) fix the error yourself, or (2) explain to them how to fix the error. Both would be just as much work if not more than preparing the return from scratch in the first place.

The client will say something like "I just want someone to look this over and see if there are any errors on it. I'll pay for your time."

So you spend a short time reviewing the return. You find errors. You hand the return back to the client with a fee for $50 and say, "Yes, there are errors on the return. You can pay the fee by credit card if you wish."

[taxmandan]

If he paid you, are you considered the "Paid Preparer"? For preparer penalties?

I didn't prepare anything, I reviewed it, so no "Paid Preparer" status.

[joanmcq]

..
This couple went through a popular on-line program and even paid and additional 29.95 for the "Checking for accuracy service".

I could not resist asking them if they held their w-2s and 1099R and all other documents on the computer monitor so the program could look at there info. I amended the prior year also. They owed more for that year, but I have gained a good client and their trust

I am sure there are many who would have just made an installment agreement or who pay the amount IRS says is due because they don't want anyone to know they may have made a mistake.

Some people are not meant to self prepare.

The TT review service actually has people looking at the returns and worksheets. Usually the double withholding is because they enter stock options w/h as 1099-B w/h and will often double report the gains. 1099-B w/h should have been flagged on the review, because almost no one has taxes w/h on stock sales, but if the client then said "sure I had it' and filed, who's to know? We did have one guy who said 'I caught you! I entered wrong info from my W-2 and the review didn't catch it!". As if we can see his source docs!

I will admit, as someone who does represents TT self-preparers, the "TT made me (let me) do it defense" is pretty funny at times. especially for some of the credits where the programs has in big bold letters 'warning, this is not common' and call these numbers to find out if you qualify for this credit, and explains exactly who does qualify, and people take it anyways....