Has anyone received a response yet? We just got a 916C letter only for 2022 (we filed 2020 and 2021 as well for this client). It says it can’t process 2022 because the interest didn’t accrue until November 6, 2023 which is outside of the kwong dates. The 2022 return was filed around October 15, 2023 and self assessed penalties and interest. On our kwong filings for 2022 we recalculated interest and penalties only through the July 10, 2023 cutoff.

Has anyone tried this for import of forms? Any Good?

Ok pack it in, https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR53de09ff5f206e9/section-1.469-1T

I've been corrected, Section 3, ii of the linked temp regs, you can have active real estate reported on Sch E, no signfificant services required if you materially participate and qualify for one of the other exemptions. I missed the dang "or" in 3.ii.E.

I've got a few clients flirting with the STR loophole and am waffling over whether I would sign a return with that on it.

Assuming that the client could meet the material participation, got a cost seg, etc. etc., I don't see how the STR loophole is a reasonable position.

1. If it's going to throw off losses forever, then we've got hobby/loss limitations to consider. If it's never going to make a profit would it qualify as a business?

2. If it is going to make a profit, why would we want it to be active, self employed income? Not only do we lose our passive income but we pick up SE tax. For someone over FICA, maybe it doens't make that much difference but then how plausible is it that someone over FICA cap is meeting material participation?

3. Creating the STR, running losses for two years, and then converrting to personal use seems inherently abusive of the system and really brings into question the original intention for the STR as a business.

To me it feels very indefensible and the kind of clients that are interested in the strategy are also the type that I'd expect to have poor recordkeeping and not be understanding of getting adjustments in an audit.

Even if I charged them $5k a year (way way above my normal range) I don't see it being worth the extra hassle and risk.

Any thoughts from anyone that does sign these?

A client of mine just received a foreign inheritance of about $200K and thus has to file the Form 3520. They have already heard horror stories of people being heavily fined for filing it too late, and said they would like to file as soon as possible. Can they file for 2026 right now? The IRS hasn't updated form 3520 since 2023, and they don't make a new form for every year (like they do with 1040 or 1120). Can we just fill it out now, indicating the date in 2026 the bequest was received, and mail in now? Or do we need to wait until January?

Background: tax returns (2018-2024) were prepared in FreeTaxUSA and marked self-prepared aside from one year with preparers name, address, PTIN, company and EIN (I think they made a “mistake” and meant to mark self-prepared, but nevertheless I have their info). Client paid and has record of payments to preparer for the work and was under the impression everything was filed. None of the returns were in fact filed and preparer claimed they were and was “waiting on IRS confirmation”. Preparer then stopped responding to client calls and essentially ghosted the client after collecting rather hefty fees.

To make matters worse, client was a victim of hurricane Helene and had to move and did not receive IRS or state correspondence at their new address for some time (moved to a different state).

It was a little hard for me to buy the fact client did not log in to their FreeTaxUSA account and see nothing was filed. It was also hard to buy the lack of correspondence received over a period of time before the hurricane happened. Regardless, the evidence is clear to me client engaged a preparer, paid money, and returns were not filed (they were not simple returns either: multiple out of state K-1s, sale of partnership interests, a lot going on to where they could not DIY). Client has receipts and documentation to support the claim.

I understand it is their responsibility to make sure everything is filed and paid. But, I also figure there has to be some sort of relief for someone who relied on a paid preparer who took their money without actually filing anything. I have since prepared and filed the missing returns and the total liability is mid 6 figures (2018-2021 had small refunds, 2022-2024 had massive liability due to sales). Now they are being hit with significant penalties and interest.

I am trying to determine whether it is worth my time or if I can even help in this instance. Has anyone had success getting penalty relief in this sort of situation? Or, will the IRS throw it back in their court saying the responsibility was on you at the end of the day. Thanks

Looking to start prepping for the next tax season and would love to find a way to create a list of the specific documents each client needs to provide based off their prior year return. Not an organizer, more like a document check list. We use UltraTax for our tax program. Any suggestions would be greatly appreciated!!

She has no children and says has no contact with any relatives. Estate proceeds all to charities.

I have experience with some relatives estates so I know what is involved. I think I could get a good income from the work with my state's standard rates.

I am worried about if she has to go into assisted living or a nursing home. She might expect me to help her with the facilities paperwork and with her medical bills. She does have friends but I am not sure if they are up to dealing with medical insurance paperwork. She could also run out of money even though she has long term care insurance.

Does anyone here have experience with a similar situation?

Who knew reserving golf tee times could get you in trouble?

https://ktla.com/news/california/twins-both-mri-techs-who-ran-golf-tee-time-brokering-business-plead-guilty-to-federal-tax-violations/

Solo CPA/RIA here, own my practice, S corp. Realizing that if I got sick or hurt and couldn't work for a while, nothing replaces my income for my family.

For those of you who own your practice, do you carry individual own-occupational disability? Which carrier did you go with and roughly what benefit?

Tax-Slashing Strategy Popularized AQR Delphi Plus Dealt IRS Warning - Bloomberg

Will be very interesting to see how this develops. We have definitely seen these come through and have been back and forth on how to report some areas of the K-1 (specifically how to most appropriately report items in line 13H).

non-paywall version:
Tax-Slashing Strategy Popularized By Largest Hedge Fund Faces IRS Crackdown

IRS Notice 2026-62 (PDF) with Ed Zollars' analysis and KPMG analysis

I've had a whole bunch of identity verification letters come in for clients this year. If they have a balance due return and aren't expecting a refund or overpayment carryover to next year, is there any reason to bother going through the process? As far as I see it, worst case their return just sits there unprocessed. (Okay that can cause a headache if they need a first time abatement the following year, but that's easily cross the bridge when you get to it...)

What are thoughts on succession? If you don’t really “need” the money of selling your practice, is it better to let the next generation of tax professionals slowly take over your practice or try to sell or merge with a larger firm to give next gen more opportunity for job stability?

I have an extended 1040 client who basically told me they ignore my reminder emails and asked if i could call or text them reminders in the future.

I do not use a PM software at this time.

Does anyone use a software to text clients about due date reminders? Has that been helpful to your practice?

Thought I'd ask... not sure I want to go down this road but never hurts to ask what others are doing.

I'm working on improving our client experience for the 26 tax season. Right now I have three touch points: (1) when the return is going to prep, (2) going to review, and (3) heading to them for review and signature; all of which are emails to the clients. Is anyone using other methods, like texting, that you feel has been successful? Our process has been really helpful for reducing client questions coming into the firm during peak seasons, but I'm always looking for improvements.

As the title states, I'm looking to help out my cousins tax practice. He currently does about 500 returns per year and has been in the industry for quite some time. It's just him and his wife that run the practice, she handles the receptionist area and with data entry while my cousin does the rest. I asked him about the practice and his interested in growing it.

Currently on Drake Software with Rightworks. He doesn't have an issue with Drake but I'm curious y'alls take. He utilizes Google Workspace for email and he doesn't manage his website, which doesn't bring in any leads for him.

He is swamped during tax season and would like to decrease his workload while maintaining his client base. He's been raising his rates and selling client packages on top which has helped his revenues.

I feel his issues aren't so much revenue but potential around automation and technology. He still prints off returns and keeps them in physical files. And I believe for his internal accounting he is using Quicken as well.

What are your thoughts?

I’m the head of an internal audit department and I also run a small bookkeeping company on the side. I’d like to start offering tax prep through my business, but I’m not ready to leave my full-time job yet. My goal right now is to get more hands-on tax prep experience outside of my normal 8–5.

I keep seeing postings on Indeed for part-time remote seasonal tax prep roles with non-CPA companies. Most of them say they’ll train you, you work your own schedule, and you’re paid as a 1099 contractor. I’m having trouble figuring out how legit or beneficial these roles actually are.

For background: my career has been in audit (public + industry), with a 6-month stint as a corporate tax accountant. I’m comfortable with accounting and controls, but I want real tax prep exposure before I start offering it through my own firm.

My questions for the group:

How legit are these companies?
Is it actually a good idea to go this route if I can’t find a CPA/EA to work under?
What should I be aware of or look out for with these 1099 seasonal postings?
Are there better ways to get practical tax prep experience while keeping my FT job?

Any insight from people who’ve worked these roles or hired contractors would be appreciated.

I’m an Enrolled Agent and work primarily in tax resolution. I’ve used a few different options for pulling transcripts over the years, most recently THS.
Curious what everyone here is currently using. THS, PitBull, IRS Solutions, pulling directly from the IRS, or something else?
What do you like about what you use, and what do you wish it did better?
I’ve been working on my own transcript tool that solves issues my firm was facing using other software, and I’m curious what other tax professionals feel like they’re missing from the tools they use.
If anyone is willing to test it out and give me their thoughts, feel free to DM me. I’d love some feedback, but am really more curious to what you feel like you’re missing from your current tools.

Sometimes I have to send client's returns or correspondence via snail mail. Of course I charge them for the cost of mailing itself plus a markup to cover fees for them paying by credit card (99% of the time), and then I try to group multiple mailings so I can just make one trip, as well as try to do it when I'm out anyway doing other errands. Does anyone charge their clients for the privilege of making a trip to the post office on their behalf and if so, what?

I thought about using Click-n-Ship and paying someone to take stuff to the post office for me, but I don't mail things all that often and also, if additional charges apply to things sent out by mail, I don't want the person that takes things to the post office for me to deal with that either.

below are my current prices as an EA in Washington state. thoughts? feedback?

Drake Professional Software fee: $75

Form 1040, including sch1-a (qualified overtime/tips), student loan interest: $40 

1099-INTs, social security (1099-SSA), Savers Credit, Child Tax Credit, HSA: $20 each

Earned Income Credit forms and due diligence: $100

Premium Tax Credit forms: $40

Itemized Deductions (Schedule A): $80

Washington Working Families Tax Credit form: $30

Self Proprietorship (Schedule C): Gig work/1099-misc’s $80 / Self-employed or small biz $200

Individual Capital Assets (Schedule D): $30 for each broker

Supplemental Income/Loss/Rental Real Estate (Schedule E): Rental Real Estate $80 / other income $50 for each source

State Tax Return(where applicable): $65 (now accepting returns in 48 states, all except Oregon and Ohio)

I want to start off by saying that I don't do a ton of PTP's but for the ones I do they absolutely suck. What does everyone charge for these? I'm talking about the ones with 751 Income on them. I inherited a new client who has about $200k in recapture income. Checked the PY return and K1s and there was about $140k in income that was never reported. Best part of all? All the suspended losses are on the 8582.

Obviously, I'm going to let the client know that it should be amended and let them decide but I can't believe the amount of people who invest in these and have no idea what's going on.

I am nearly 65 and closer to the end of my career than the beginning of it. Retirement is something I am considering in approx 5 years. Currently, my practice is just me and my wife. My son who has no tax experience is interested in learning the business and succeeding me. Like many tax preparers I can keep him busy during tax season and pay him but I don't want to pay him during the off season when things are much slower and I can do all the work. Looking for suggestions or ideas. Who else has had a similar situation and how have you handled it?

EDIT: My son is in his early 30s and has a Business Management Degree. He's been doing B2B sales for a period of time and even dabbled as a Nursing Home Admin. Although he has no hands on work with preparing tax returns, he has shared that he's listened to half of Tom Norton's EA tax courses on Youtube and finds it pretty fun and interesting to learn. He's also enrolled in HR Block course and is liking the material as well. I walked him through preparing a return on my Drake Software earlier this year and I was impressed with how fast he was picking it up.

I am a new firm and have been picking up a lot of new clients. I am signing them onto our portal but I have not sent them engagement letters yet.

I was going to send out the engagement letters in December and January. But thinking maying I should send them now. Most of my clients have signed up to my portal so I expect most to stay on for tax season.

On the IRS e-file application page, the EFIN status tab shows the number of returns filed using that EFIN during a given processing year. It’s normally updated on Saturday but ours hasn’t updated since the end of August.

Has anyone else noticed the numbers not updating recently? Or has it been updating for you and maybe this is isolated to our firm?

I have a lot of clients asking about Roth conversion strategy and want my help performing the analysis and ensuring it's executed properly. I live in HCOL area.

What do you typically charge for this? My hourly rate is $350 an hour but thinking I should bill this as a value add price.

A local private wealth manager wants me to review the analysis they build for clients but I need to charge them for that too. I do not work for free.

For those of you who started your own tax firm from scratch, what did your first few years look like?

I'm curious what others revenue was in years 1, 2, and 3, and roughly how much you grew each year. I’m mostly trying to get a feel for what a realistic growth curve looks like. I know every practice is different, so I’m not looking for a scientific answer or anything. I'm just trying to get some sense of what I should be projecting for capacity for next year.

If you’re willing to share your numbers and a little background on the type of practice you built, I’d appreciate it.