r/taxpros

There is a company called taxgpt or asktaxgpt. Anyone used it? What are your thoughts compared to Bloomberg or checkpoint?

I just had my first client meeting and it went okay. My main problem is that I know what I’m talking about, but I have a hard time explaining things to clients to where they understand, or I say something they don’t understand and then we get lost in the weeds for 10 minutes on something that is a non issue. Like bringing up a sales tax compliance issue, and how the calculation works.

How do you lay out your prospective client meetings to where you can stay on point, understand their business, and then pitch your offer to them?

Hi all, just looking for some reassurance about something.

Filing 1120-S for client. Past books and returns were messy so cleaning up. In review, noticed at time of acquisition, part of allocation was 40k in supplies added to assets. Client does NOT keep inventory. Small dental clinic that expenses supplies when bought so cash basis. However, the supplies stayed on the books and subsequent returns for last 8 years and were never expensed. Am i correct in my understanding below? ⬇️

File form 3115, citing section 11.08 of the permissable changes where it explicitly states: "A change to deducting amounts paid or incurred to acquire or produce non-incidental materials and supplies in the taxable year in which they are first used...or consumed..."

Since the materials were incorrectly treated as inventory and carried as assets on the balance sheet, this would be an appropriate course of action correct?

I appreciate the assurance. Im a newer EA so I want to do my due diligence and make sure im thorough and ask those with more experience where I can 🙇‍♀️

can any of these build a questionnaire from a pdf of the tax return? seems like they build a questionnaire using data from the tax software, but I am a newer firm and have a lot of new clients which obviously would not have prior year return data from the software.

Not sure how many of you are in California, but for those of you that are, you should be aware that SB 122 has been signed by the governor.

It extends sales tax to intangibles like business software, even if they are not delivered on physical media.

Depending on your County and City, you'll now pay 9.5 - 10.5 percent sales tax on your tax software, quickbooks, tax research, website services, zoom, and any other non-custom software that you buy, whether on physical media, downloaded, or SaaS.

It's effective as of January 1, 2027.

It sucks, but that's how California closed their budget gap.

The Pro Adviser bundle price increases from $1,599 to $2,399 in one year. And if you don’t renew you’re locked out from all the clients that you have in the Software.

Am I going insane here? If an officer is also a shareholder, we truly have to duplicate their data entry? Is there nowhere to check "Officer is also a shareholder", or vice versa?

Picked up a multi-year non-filer. High earner, service-based sole prop (writing/content), 6 years of unfiled returns. Income is fully documented via 1099s and payment processor records. The problem is the expense side. Essentially no records, no receipts, no tracking for any of the years, and bank reconstruction is not an option (fully commingled, accounts no longer open, general mess).

Been advised by a very experienced practitioner (decades in the field, long IRS background) that when records are this thin, one "accepted" approach is to apply IRS/industry-standard expense ratios for the client's NAICS (the kind of data on BizStats, RMA, etc.) rather than filing at or near zero expenses, on the theory that you're estimating conservatively

Trying to give the client a fair result without putting my PTIN on a number I can't defend. The goal is specifically to not overshoot and draw an exam.

How do you handle these? And if you've used industry ratios as the actual figures on a signed return, has that position ever gone to exam, and how did it hold up?

How are you calculating the refund if a client has been on an installment agreement for a few years? We have a client that was assessed penalties and interest of roughly $17,000 and has currently paid down their balance by nearly 30%.

I vaguely remember payments are related to penalties, then interest, then the tax but can't remember exactly and curious how everyone else is calculating these refunds. We'll do an abatement for them as well.

I've had a couple meetings and demos with the Filed team and it all sounds and looks great but wanted to get feedback from any other UT users what their experience has been before I jump in

Original post here

Long story short, I made a dumb mistake when filing a tax return and didn't catch it on my review. Normally, it would have seemed off to me but the young taxpayer still had a big payment and I missed it. Totally my fault though, no excuses.

I did end up cutting a check to him for all of the penalties and interest on the notice. It wasn't a very simple return and he is a young kid so I only charged him $500. Those penalties were $1200.

So he sent in the payment but his 2025 refund also was garnished. I initially though that the IRS just wasn't talking to itself, like they do. That may still be the case, and I'm getting a POA to talk to them, but going back and looking at it, the original notice is dated March 2 (and I know the dates on those things can be weird), but he didn't send it to me until April 20. I looked at it, realized I was in the wrong, advised him to pay it, and dropped a check in the mail right away.

So it may be (caveat that the IRS could just be wrong), that there was another $1100 in penalties and interest added to his balance. That amount feels way high to add, but worst case scenario, if it is right, what would you all do?

Some people originally suggested that I pay penalties only. It is true that he held on to the $9000 underpayment for two years. I didn't do that, however. I owned up immediately and cut a check for it all. It's tough because it is originally my mistake but the client is asking me to send him another check for the difference.

I certainly want to do right by him and I feel like I have done so, but it rankles a little if part of the issue is his not getting to me right away. I also only did his return the only year because of the complexity. I'm inclined to adjust for the penalties only but can't decide.

Thanks in advance for your thoughts.

Edit: to grumble once again about the IRS taking two years to send in a notice that their computers should have caught in one second. Something needs to change.

I was using Google Sites as my website designer/host w/ custom domain, and I am very well versed with using Google Sites. However no matter how I try, mobile optimization on Google Sites is always poopookaka.

So I opted to use a website builder that rhymes with the word "Icks" and its been nothing but awful. Poorly optimized, mobile site messes up on every desktop site edit, preferences being undone randomly, support not being supportive, etc.

Even with all these issues I faced, I built a semi-solid website for a solo practitioner (for now). I offer general tax services but specialize in indirect taxes, and I think my site expresses that well.

The problem I have now, is that I have a few AI generated stock images that may be too much noise on my site. I'm being very hard on myself to make sure my site looks as perfect as it can be before I start handing out business cards and advertising.

How did you know your website felt "ready" to be displayed to the public? I can't seem to come across that hurdle personally, and keep going back to revise my website. I've even thought of deleting and restarting it. I'm over 100 hrs on just building my own site and I'm not happy.

I know I wouldn't be happy if I paid someone else to build it for me because I don't think people can capture my vision well.

Good morning, I’m using Tax Act Pro for the first time. After completing the return , how can I let my client review the return remotely before signing and paying , without giving them the ability to download the return? Thanks for any help. I have searched and watched the Tax act videos and don’t see anything.

I’d like to start reaching out to other professionals such as lawyers and financial advisors to help get some referrals for my solo practice.

For anyone that’s had some success with using cold outreach for this :

Thoughts on using a small lead magnet or something of value, like a simple guide or a cheat sheet? Is there a format that you’ve found works well?

Are there any common pain points that you consistently ran into when reaching out?

Anyone converted from using Sureprep ScanVerify Onshore to Juno?

If so, what are your thoughts on the pros and cons?

We do a lot of complex returns and Sureprep is pretty expensive.

Thank you for any insights.

Right now I am really working on re-doing all my firm pricing.

Anyway, I have a new lead who I did a discovery for. He is interested in tax planning.

He is retired with a 401(k) and 457(b) plan, wants to to know when to rollover into a ROTH. His wife is a W2 and also has a 401(k). No SS yet for either of them. They own a rental property to. They want someone to consult on a bi-annual basis. Their joint gross income is around $300k. The only big thing adding to the scope is the potential that they are interested in moving from CA to TN along with the rental and want a tax advisor for that.

So far my quote is:

Preparation: $1,100

One-time discovery/tax plan: $1,200

Ongoing tax planning: $1,200

(HCOL)

The ongoing service would include answers to those questions as well as Y/E projections and a mid-year meeting and a November meeting.

Is this fair?

I don't know if this is the most effective way to price tax planning. My main time concern is the time I would spend researching the CA to TN move. As at his level of income, he is paying almost just as much tax to FTB as the IRS.

It's harder to scope these clients IMO as their tax planning is relatively straightforward.

What is the best way to approach fee based tax planning?

Since leaving B4 and a large regional firm, I’ve become a partner at a 17 person operation. We are constantly looking for people so we can grow. The amount of work we have to turn down is staggering because we don’t have the capacity.

I’m only 1 year into being at this firm (brought in as a partner by the existing partners I knew for many years), so I don’t want to rock the boat but it’s very easy to understand why no one wants to work at our firm.

In my 14 years of experience it boils down to 3 simple things, pay, workload, and location (office, hybrid, remote). That’s it. Anything else is noise and can’t overcome the core 3. A 10/10 culture will never make up for low pay and in office.

I can’t tell you how many times I’ve heard “we can’t afford what these people want or what they’re currently making”. Not only is that not a good excuse, I’d argue you have to pay even more. Like most small firms we are mostly in the office since our clients are. That means your 1-2 day a week hybrid offer is going to have come with a bigger check. You’re already fighting an uphill battle as anyone who is young and determined is going to want to start their career at a larger firm to learn more. The more experienced people you have to not only beat industry pay, but you’re going to have to offer very high compensation or equity path because why would they work for you when they can do it themselves? Everyone loses their mind when a 8 year experience person wants $170k total compensation and/or outlined path to partnership. To me this isn’t unreasonable at all. But to my peers it’s so offensive they don’t even entertain it for a second. You would think they’re also asking to fuck their spouse that’s how offensive they think it is.

I don’t know if this is because they’ve been drinking the small firms kool aid too long or what. And don’t get me started on workload. Do we work B4 hours? No. But we are damn close to the regional firms I spent many years at. It’s literally a wash. So you can’t even argue a pay discount because you work less. But in my peers minds, they think maybe 100 hours less a year is worth a $20k discount. Why wouldn’t they take it?!

I don’t know what to do. We have some really smart people and a ton of work waiting on the sidelines. We could easily grow 15-20% for the next few years if we got more people. But when I express the elephants in the room, like pay, like in office, like every firm is struggling and we offer worse everything, I’m treated like a crazy drama queen. In my mind there is more than enough money to go around, it’s just changing the mindset that a kid coming out of college isn’t $50k anymore, it’s closer to $70k here in Michigan and resetting expectations that we don’t really offer anything other firms don’t and what we do, is not at a magnitude you think it is to make a difference in a new hires choice to come here.

This topic seems like a common theme on this sub. I wouldn’t be surprised if my managing partner has made posts/rants on this sub about not being able to find staff.

Edit: And before anyone says well the firm has 17 people, they clearly can grow. The firm has been floating around 15 people since 2012. So…….

Why are firms just turning clients away instead of setting up a new firm owner with the lead, even if its for a fee?

Just doesn't make sense to me and sounds like a terrible management of resources as a profession.

I’ve been working for my dad and my brother-in-law, who are both CPA/JDs, for the past 10.5 years. I got my master’s but was never able to pass the CPA (thanks ADHD!), so I finally got my EA about a year ago. I worked in accounting out of undergrad for a few years but then spent about 10 years out of accounting thinking it just wasn’t for me, yet here I am.

About a year and half ago my brother-in-law was diagnosed with cancer and unfortunately, it is now terminal. Leaving aside the very complicated family dynamics which could make a lengthy post in some other sub, I would really appreciate the r/taxpros rational take on this. I’ve seen all the posts about people going out on their own or trying to get hired and all of the struggles that go with both and I need to figure out what’s the best move for me and my family. I am not at all trying to minimize the gravity of my BIL's situation and how shitty it is. This post is just not meant to be about that.

The big picture is I can’t do the work my BIL does. We're very lucky to have quite a diverse client base, but he’s always worked on the more technical and lucrative HNW clients and I’ve always done more bookkeeping and “simpler” clients. He's also a lot smarter than I am and we have completely different work ethics. At this point, my dad hasn’t really touched returns in years and wants to fully retire already. Basically, without my BIL, our most lucrative clients are gone and after running the numbers, I’m not even sure we still have a firm without those whales.

Our firm is still kind of classic boomer, but I managed to digitize everything within the first two years of working there, upgraded the tech stack and hardware, even caught and navigated us through the early stages of a data breach a few years ago, and pushed hard for increasing pricing for years, which we’re still not quite caught up on. We also still suffer from major scope creep because we don’t do engagement letters and since we’re also a law firm, “Oh we can do that too! It’ll only take 5 minutes.” Every time I think I’m done with the simplest clients, all this busy work keeps popping up because of that.

And as much as I love my family, my relationship with my BIL turned toxic years ago, and dad is just finally starting to consider the reality that we may not have much of a firm left when my BIL is gone. On top of that, I felt like I was completely alone this past tax season, and I managed to totally screw up dozens of returns and extensions, of which I still have not fully dug myself out from.

I’ve considered leaving multiple times in the past because of the poor relationship and the boomer stuff, but I didn’t want to disappoint my dad or ruin my relationship with the rest of my family, but now I really need to make a decision.

Should I try to open my own firm with the remaining book of business? Is it even worth trying to recondition these clients to paying more and not being babied anymore like dad always did? I did manage to get them to use the client portal! I’ve seen other posts on here about solo firm owners and I just cannot see myself working alone like that for a lot of reasons. If I were to try and keep a pared down version of this firm going, I would definitely need to hire someone. And our first intern cut and ran in the beginning of March after a year just as he started showing us he actually knew what he was doing, so I hate the idea of investing in someone just to get burned again even though I know it's a necessity.

Or should I just go look for a job as a mid level grunt somewhere? Would anyone even want to hire someone in their low 40’s with a family who’s more a jack of all trades and a master of none? I know I have a wide skill set and exposure to a lot more areas than most, but I have no idea how that translates into an actual small or mid sized firms needs. I've worked on everything from the dinkiest 1040 to 706s that had to be mailed to the IRS in multiple boxes, from setting up and managing payroll and issuing 1099s to hours long phone calls with the IRS and NYS dealing with all kinds of notices. How does that skill set get me out my dad's basement home office and into a large firm where I'm actually useful and properly compensated? I just have no idea.

If you've got this far, thanks for giving me a place to vent!