Home » COMMENTARY (Page 2)
Category Archives: COMMENTARY
IRS Releases Specifications for Registered Tax Return Preparer Test – Doesn’t it just give you the chills?
By Stacie Kitts, CPA
Here it is, what all un-registered (non CPA’s, attorneys, or enrolled agent) tax preparers have been waiting for. The specs for the competency test that will award those who pass the title of “Registered Tax Return Preparer.”
Wowwee doesn’t it just give you the chills….
No – well maybe that’s because CPA’s and attorneys can sign tax returns even if they don’t have a single clue what they are doing. They get to do this without passing a test (other than the initial licensing exam which he/she could have taken a hundred years ago – so not even relevant today) or taking a single hour of tax related continuing professional education. You know, training that would keep you up to speed on the actual tax laws that apply to tax return preparation.
So what do you think the odds are that many of these licensed “professionals” would have a difficult time passing the new competency test?
Ya, scary jacked up regulation that leaves out a large number of people who are trusted to prepare your tax return.
Fixing the mistakes of these so called professionals is a large part of my practice. I guess I should be grateful instead of loosing my mind over the absurdity of it all.
WASHINGTON — The Internal Revenue Service today released the specifications for the competency test individuals must pass to become a Registered Tax Return Preparer.
The test is part of an ongoing effort by the IRS to enhance oversight of the tax preparation industry. Preparers who pass this test, a background check and tax compliance check as well as complete 15 hours of continuing education annually will have a new designation: Registered Tax Return Preparer.
The specifications identify the major topics that will be covered by the test, which will be available starting this fall. Although individuals who already have a provisional preparer tax identification number (PTIN) from the IRS do not have to pass the exam until Dec. 31, 2013, they may take the exam at any time once it is available.
The test will have approximately 120 questions in a combination of multiple choice and true or false format. Questions will be weighted and individuals will receive a pass or fail score, with diagnostic feedback provided to those who fail.
Test vendor Prometric Inc. worked with the IRS and the tax preparer community to develop the test. The time limit for the test is expected to be between two and three hours. The test must be taken at one of the roughly 260 Prometric facilities nationwide.
To assist in test preparation, the following is a list of recommended study materials. This list is not all-encompassing, but a highlight of what the test candidates will need to know.
- Publication 17, Your Federal Income Tax
- Form 1040, U.S. Individual Income Tax Return
- Form 1040 Instructions
- Circular 230, Regulations Governing Practice before the Internal Revenue Service (rev. 8/2/11)
- Publication 334, Tax Guide for Small Business
- Publication 970, Tax Benefits for Education
- Publication 1345, Handbook for Authorized IRS e-file Providers
- Form 6251, Alternative Minimum Tax – Individuals
- Form 6251 Instructions
- Form 8879, IRS e-File Signature Authorization
Some reference materials will be available to individuals when they are taking the test. Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as reference materials.
The fee for the test has not been finalized but is expected to be between $100 and $125, which is separate from the PTIN user fee. Currently there is no limit on the number of times preparers can take the test, but they must pay the fee each time. Individuals must pass the test only once.
Only certain individuals who prepare the Form 1040 series are required to take the test. Attorneys, Certified Public Accountants and Enrolled Agents (EAs) are exempt from testing and continuing education because of their more stringent professional testing and education requirements. Also exempt are supervised employees of attorneys, CPAs, attorneys or EAs who prepare but do not sign and are not required to sign the Form 1040 series returns they prepare and individuals who prepare federal returns other than the Form 1040 series.
Approximately 730,000 return preparers have registered and received PTINs in 2011. Approximately 62 percent do not have professional credentials. The IRS does not yet know how many preparers will fall into other exempt categories, but those individuals will be required to identify themselves when they renew an existing PTIN or obtain a new PTIN beginning in October 2011.
The IRS will notify those preparers who have a testing requirement and provide more details. Once the test is available, preparers who have on-line accounts can use their accounts to schedule a test time and select a Prometric site.
At the time the current version of Publication 17 went to press, there were certain tax benefits that had not been finalized and several tax benefits were subsequently extended. See Legislative Changes Affecting the 2010 Publication 17 on IRS.gov for the details needed for study purposes.
Is Stripping An Art Form or An Obscenity – Kelly Phillips Erb Explains The Tax Connection
By Stacie Kitts CPA
These days I rarely have time to do anything that doesn’t directly involve running my accounting firm. But Kelly – also known as the TaxGirl ® penned an article that caught my eye Strip Club Doesn’t Meet “Bare Minimum” in Court. Punny huh?!
In fact, it so entertained me that I had to change gears to tell you about it. I admit it, even I think tax is a dry subject for a blog. But there is that rare story that entertains.
The fundamental question posed in Kelly’s post – Is exotic dancing an art form?
It turns out that in the state of New York, since 1965, sales taxes are imposed on the fees paid by patrons at strip clubs. However, Nite Moves, an adult club in Latham, New York, begs to differ with the state’s interpretation of adult and exotic dances. The club was audited in 2005 by the New York Division of Taxation and told to remit nearly $125,000 in unpaid sales tax – plus interest – for fees paid for door charges and private dances (if you have Tina Turner’s “Private Dancer” song in your head now, you’re not the only one). But Nite Moves claims that the assessment was in error. They believe that the fees paid should be exempt from sales tax and appealed.
In its argument, Nite Moves cited Tax Law § 1105 (f)(1) which exempts:
Any admission charge … except charges for admission to race tracks, boxing, sparring or wrestling matches or exhibitions which charges are taxed under any other law of this state, or dramatic or musical arts performances, or live circus performances, or motion picture theaters, and except charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to be a participant, such as bowling alleys and swimming pools.
(Emphasis added)
In other words, they believe that fees for lap dances should be exempt just as fees for the ballet.
The court ultimately disagreed. They concluded that the club didn’t provide enough evidence that would prove that the “private dances offered in the club were choreographed performances.” The club simply didn’t successfully sell the court on their argument that stripping is an art form.
I don’t know, swinging around on a pole – upside down secured by a single limb – plus, some of those girls are really bendy and have some pretty impressive acrobatic skills. (What? I’ve seen Striptease – you know with Demi Moore) Seems to me that there is some skill involved, some artistic expression…and shall I say it, even some talent. I think, yes, I think I might have been able to sell that in court….but that’s just me.
Related articles
- Exotic dance, artistic performance: tomato, tomahto, taxes (dontmesswithtaxes.typepad.com)
- NY court says strip club’s lap dances are taxable (boston.com)
- NY court says strip club’s lap dances are taxable (msnbc.msn.com)
- NY court says strip club’s lap dances are taxable (msnbc.msn.com)
- NY court says strip club’s lap dances are taxable (hosted.ap.org)
- Lap dancers take it on chin from N.Y. court (cbsnews.com)
Recovering Bubblehead- Unfortunately, There is No 12 Step Program
By Stacie Kitts, CPA
I like to think of myself as a recovering recovered bubblehead. You might know the type, she was portrayed by Calista Flockhart in the late 90’s as Ally McBeal. The character was described as “annoying and demeaning to women (specially professional women) because of her perceived flightiness, lack of [knowledge], short skirts“, and….. well you get the point.
As ridiculous as it sounds, there was a time – a long time ago in a galaxy far far away – when I thought I had found the right combo. Often sporting an outfit that only Ally McBeal (an imaginary made up TV person, so like no real person should have tried to pull this off) would wear, I was, sadly, the “sexy” CPA.
Ludicrous, I know!
This style choice did not endear me to my female colleagues. And had you met me in those days, you might not have noticed that I had a brain at all. This, of course, is not the impression you want to make when your brain is what you are selling.
Flash forward ……. now we are visiting my solo “stay home” tax practice period. This quarter decade represented my relaxed period, where comfort was my style of choice. My old warn out sweats and stylish jammie sets worn around the home office probably earned me the label of “comfy” accountant. Also, NOT the serious accountant image you want to project, particularly when you are trying to convince a person who has amassed a considerable amount of wealth that you are the advisor who is going to help them keep it.
Interestingly, of these two periods, the comfy accountant was/is the hardest to overcome – a few enlightening moments, and some mentored wisdom eradicated the “sexy” CPA fairly quickly. But taking the comfy out of accounting was like a slow excruciating death.
Even so, it’s done. These days I work in an office building and I look forward to casual Fridays where I can throw on some jeans with my conservative cardigan. I might even spice it up with some colorful shoes or fun jewelry. But for the most part, first impressions are my main concern and my style choices scream I’m confident, educated, serious and professional.
~~~~~~~~~~~~~~~~~~~~~~~~~~
The Blouse
Your fashion choices actually play a large part in selling you and my own fashion history is testament to this.
Being a recovered fashion bubble head probably explains why I recently had a slight meltdown when my assistant commented on how cute my suit was but added, “Your top makes you look like a big orange pumpkin.”
Let me explain.
That morning I had arrived at work wearing a conservative black suit over a cute orange top with cute orange shoes carrying my cute salmon colored purse. Just the right >pop< of color. I felt completely prepared for my big pitch to a large potential client. I was clear on the tax issues and confident in my ability to sell it. But that was before I realized that my clothing choice looked like a Halloween inspired disaster.
I hurried to the bathroom where I stood in front of the full-length mirror and thought, Oh-My-God, she’s right. Why did I pick orange and black? I look ridiculous.
Now my confidence is waning. I can’t get the pumpkin image out of my head. How was I going to sell ME and MY skills when I looked like “that” lady. You know, the one that can’t possibly own a mirror because if she did she wouldn’t be wearing that!!!!!!
My head starts to fill with possible solutions: go home and change – nope not enough time, swap blouses with a co-worker, nope not an option, run to the mall – yes there might be enough time for that there’s one right across the street. I gathered all the paraphernalia I needed for the meeting, business cards, portfolio, flyer about the company etc. and head out.
I found parking rather quickly and felt the relief flooding through my system. I ran toward the door and pull on the handle. Locked!!! It’s locked. I look at the hours – “OPEN 10am”
10AM?
10AM, what? …..Shut down by my lack of knowledge about mall hours.
I pulled out my cell phone and click a button so I could see the time. 9:30 – No time to wait until it opens, find an appropriate blouse and still get to the meeting on time.
I’m screwed, I’m screwed, I’m screwed.
Despondent, I slowly slink back to my car and try to convince myself that, it’s no big deal, you can still sell it, it’s not that bad, forget it. Ya right, I was a wreck. So as I headed toward certain rejection, I resolved myself to make my pitch just the same.
But miracle of miracles, not only did I arrive early to the meeting, but by some grace of god, the meeting was across the street from a mall. A mall that was open!
It wasn’t too late, I might pull it off. I am elated, rather giddy in fact. I top the escalator and see just the perfect thing. How wonderful. I try it on and it looks great. Stepping out of the dressing room, I spot a manned sales register.
Hello, I’m in a hurry can you ring this up for me really fast?
I am sorry dear, but we just opened and it will take some time to get the registers up.
HUH, really, what? There’s noo time? NooooTime!
At this point, I’m thinking run, run with the cute blouse, go ahead make a dash for it…..it’s your only hope….It was amazing the amount of thoughts that flowed through my mind in those few seconds. Could I get away with it, I would come back later and pay, maybe she would hold onto my wedding ring for collateral.
And then…..
She must have read the desperation in my expression because she says, “Wait, I think the register over here is up. Let’s see.” And glorious day, it was.
Sporting my new blouse with renewed confidence and relieved that I wasn’t a fugitive from justice, I arrived in time, made my pitch and yes, landed the client.
Hurray, disaster averted- thanks to the right first impression and my cute new blouse!
Messing with Their Taxes Creates All Kinds of Bad for a San Juan Couple
By Stacie Kitts, CPA
When I read a story about someone who appears to have been messing with the tax system for some thirty years, it makes me wonder…..who in the heck did their taxes, and why did it take so long to get busted.
The Orange County District Attorney is reporting that James and Dorothy Klinger, owners of Jamo’s Gardening and Modern Tree Services Inc. are charged with 28 counts of failing to file a return with intent to evade tax, 28 counts of willful failure to pay taxes, and some felony counts for lying about their business to a worker’s compensation insurance company.
These two are looking at spending the rest of their lives in prison if convicted.
They appear to have used an old school tax crook technique and kept two sets of books. You know, one that showed the “real” dollars and one that was a work of fiction.
Was it worth it? You decide….
They are accused of underreporting about $3.6 million in income and $3 million in wages. This translates to about 1.9 million that should have been paid over in taxes (give or take) that they got to keep – for a little while anyway.
I don’t know about you, but $2 million isn’t enough money to risk a 40 year prison sentence. Am I Right!?
Related articles
- Anonymously ‘squeal’ on tax cheats (dontmesswithtaxes.typepad.com)
- Top 10 tax tips from CPAs, also known as Letterman’s annual spoofing of taxes (dontmesswithtaxes.typepad.com)
- IRS Reminds Taxpayers How To Provide Earthquake Relief For Japan (staciesmoretaxtips.wordpress.com)
- 2011 Depreciation Deduction Limitations – (and a classic video from The Cars) (staciesmoretaxtips.wordpress.com)
Stacie’s More Tax Tips Makes a Top Something or Other List
By Stacie Clifford Kitts, CPA
Seems like I am always reading someones top something… tax/accounting/business list and it always makes me wonder – just how does someone get on this list anyway?????
Like for example take Accounting Today/Tomorrow/WebCPA. This group publishes a top 100 most influential people in the accounting industry list. Every year I read it over and wonder – how do they decide who is “most influential” anyway? I mean really, is this a scientific thing? Are there compliance criteria – like a PPC guide “How to Determine the Most Influential People in Accounting” – we are talking about accountants here – I assume there’s a checklist?
I do hope its more scientific than just a bunch of journalists sitting around a conference table, sipping coffee and munching on donuts while someone writes names on a white board. Just picture it, a bunch of bored staff writers some twisting slightly in their chairs, some lounging about, others lazily calling out names. Then someone says, “hey cross off Sally Johnson, she was rude to me at blah blah conference. she doesn’t make it this year.” Yowser,I hope it doesn’t work like that!!!
Recently, I’ve been contacted by a “.com site” or two. These sites were letting me know that I could be listed on a top something list….so –be sure to mention it at Stacie’s More Tax Tips- wont you?
While I get how this whole quid pro quo thingy works, I have declined 100% of the “link to us, we’ll link to you” offers. I’ve even turned down click for payment offers because I didn’t think the link topics where appropriate for my my site.
But you know what, I’ve decided that gosh darn my blog is interesting.. And yes siree, I deserve to be on a top anything list.. And, it has absolutely nothing to do with quid pro quo. Nope, they of course see the genius that is my blog and feel compelled to share. So thanks to bschool.com for naming Stacie’s More Tax Tips in the 50 best Blogs to Get You Through Tax Season.
Oh by the way, the picture is of me and the grandbaby enjoying Christmas day with the family!
Related Articles
- Ping Your Way To a Successful Social Marketing Strategy – It’s A Whole Lot Better Than Being an A-Hole (staciesmoretaxtips.wordpress.com)
- 2010 in Review – The Health of Stacie’s More Tax Tips – I Feel Like Doing The Snoopy Dance! (staciesmoretaxtips.wordpress.com)
- Snubbed Again! And a Sincere Apology (staciesmoretaxtips.wordpress.com)
- Are You All a Twitter About Tax News? Now You Can Follow The IRS @IRSnews (staciesmoretaxtips.wordpress.com)
- IRS Presents:Ten Things Tax-Exempt Organizations Need to Know About the Oct. 15 Due Date (This is a how to on keeping your exempt status) (staciesmoretaxtips.wordpress.com)
- Accounting blogs for the kids (dontmesswithtaxes.typepad.com)
- Picking Apart the IRS’ Top 10 Tax Time Tips (staciesmoretaxtips.wordpress.com)
HERE’S A LESSON IN QUESTIONABLE CUSTOMER SERVICE – DON’T MESS WITH SOMEONE WHO HAS A BLOG THAT PEOPLE ACTUALLY READ
By Stacie Clifford Kitts CPA
I just can’t help myself. I need to tell you because you are not going to believe what I am doing right now.
If you are familiar with popular tax and write-up software companies, i.e. you’re a CPA or tax professional, then you might recognize the number that’s showing on my phone in this picture.
Let me break down what you are looking at.
The 800 number showing on the screen represents the “customer service” number for my tax software provider. The bottom right hand number represents the time that has passed since I have been on the phone trying to resolve an issue with the software.
Now the first hour of time that is depicted reflects the time I spent with a technician who was trying to get my custom letterhead to work properly. The idea of adding your letterhead to the software is to save time. That is, when I print a tax return, the transmittal letter and filing instructions will print on my letterhead eliminating a processing step. Yeah for everyone because the less time I spend on a return theoretically the more savings I can pass onto my clients. Very cool – if it worked!
Anyway, the tech was very nice and told me he would call me back tomorrow when he had more time to figure out why it wasn’t working.
This is when I made my fatal mistake and asked to be transferred to a different department so I could resolve yet another problem with the software. The person who took this call was unable to assist me and asked if she could put me on hold to research the issue. As of the writing of this blog, I have been on hold for over 65 additional minutes (a total of 2 hours and 5 minutes of time on the phone with you know who).
What do you think? Is my friendly customer service rep who had no idea how to answer my question heading home, or maybe she’s already home getting ready for bed spending time with her family – while I languish on hold like a spurned desperate lover hoping someone will come back to the phone and resolve my problem.
That’s right loyal readers, she forgot about me. ***Ugh*** I feel like such a loser. 😦
2010 in Review – The Health of Stacie’s More Tax Tips – I Feel Like Doing The Snoopy Dance!
I think the stats presented below provide interesting insight into my blog, so I thought – what – the – heck – why not share.
so let’s see – 25,000 visitors (like I said see below) may seem like a drop in the bucket to tax bloggers the likes of the Tax Prof, but you know what – I am absolutely thrilled! I have 117 Facebook fan’s and a whole bunch of subscribers. I am turning cartwheels (well in my head) at this very moment.
Other exciting things have happened this last year as well (which unfortunately have affected my ability to post as much as I would like – but you can’t have everything :-)).
I have a new partnership, Katherman Kitts & Co. LLP – the offices are located in a high-rise across from the Irvine Spectrum (a huge shopping center) – so the fact that I have moved my stay home tax practice to an actual office doesn’t suck!
I am having the time of my life finding just the right staff and of course decorating the office space.
How do you know when you have finally “made” it? Well, my litmus test – the flat screen tv and lovely sofa enhancing the awesome view from my corner office. *heavy sigh*
I truly wish the same level of success and happiness for all my family, friends, clients and loyal readers this coming year.
Now I think this calls for a Snoopy Dance, care to join me?
The stats helper monkeys at WordPress.com mulled over how my blog did in 2010, and here’s a high level summary of its overall blog health:
The Blog-Health-o-Meter™ reads Wow.
Crunchy numbers
This blog was viewed about 25,000 times in 2010.
In 2010, there were 181 new posts, growing the total archive of this blog to 464 posts.
The busiest day of the year was December 9th with 709 views. The most popular post that day was Watch Out Mortgage Debt Forgiveness Act is A Federal Provision. Does Your State Comply?.
Where did they come from?
The top referring sites in 2010 were tax-debtrelief.com , facebook.com, Google Reader, and search.aol.com.
Some visitors came searching, mostly for 990 instructions, form 990 instructions, form 8941, debt forgiveness act, and mortgage debt forgiveness act.
Attractions in 2010
These are the posts and pages that got the most views in 2010.
Watch Out Mortgage Debt Forgiveness Act is A Federal Provision. Does Your State Comply? March 2010
About Stacie’s More Tax Tips December 2009
2 comments
IRS Patrol: Form 990 Schedules and Instructions for filing in 2010-11 February 2010
Outline of Health Care Act – Tax Provisions of HR 3590 March 2010
Seven Things Your Accountant Should Have Told You – a Good Post From the Past January 2010
3 comments
Related Articles
- IRS Presents:Ten Things Tax-Exempt Organizations Need to Know About the Oct. 15 Due Date (This is a how to on keeping your exempt status) (staciesmoretaxtips.wordpress.com)
- IRS Patrol: IRS Provides Help For Small Employers Eligible to Claim the Small Business Health Tax Credit for the 2010 Tax Year. (staciesmoretaxtips.wordpress.com)
- Ping Your Way To a Successful Social Marketing Strategy – It’s A Whole Lot Better Than Being an A-Hole (staciesmoretaxtips.wordpress.com)
- IRS Patrol: New Form 8941 -IRS Releases Form to Help Small Businesses Claim New Health Care Tax Credit (staciesmoretaxtips.wordpress.com)
- Happily Trudging Along Enjoying My New Adventure – Katherman Kitts & Co. LLP (staciesmoretaxtips.wordpress.com)
- Some Tax Payers Will Need to File Their 1040 Later Rather Than Sooner This Coming Filing Season (staciesmoretaxtips.wordpress.com)
Jason Blumer CPA, He’s a Funny Guy
Jason Blumer CPA, the managing shareholder of Blumer & Associates is a funny guy. No really. It’s true. There is proof.
I also really like his website:
We believe your numbers are simply telling stories about the relationships, processes and knowledge running deeply through your business and life. The production of numbers is not the end goal of our firm. We are here to bring clarity to the reasons why your numbers are what they are. We are a next-generation firm, and we are doing this all over the dang world!
That’s some nice copy – wish I had written it! AND according to Accounting Tomorrow – Jason is the second place winner in the Atom’s Got Talent Video. Congratulations Jason!
Happily Trudging Along Enjoying My New Adventure – Katherman Kitts & Co. LLP
By Stacie Clifford Kitts, CPA
From my vantage point on the soft old sofa, I marvel at my husband’s large Italian family as they come together for mom and pops’ 80th birthday party. The cousins, now grown hug, kiss, and laugh about the passage of time and their numerous adventures. My brother in-law snores softly in mama Kitts’ comfy recliner, and from the kitchen, a boisterous aunt tells stories of family members long since past while mama sets out endless supplies of goodies and encourages everyone to eat-eat-eat.
And me, I’m peering at this comforting scene over the top of my laptop as I answer emails and work on a tax return. Such is my life. But I am content, happily trudging along enjoying my own adventure. Because today readers, I want to introduce you to Katherman Kitts & Co. LLP, my new firm.
Oh loyal readers, I have been anxiously awaiting this exciting announcement like a little kid anticipating Christmas morning.
Every day I run through my “how to open your own firm” checklist, you know the one I created the second my adventure started, (Accountants love checklists) and as I tick-off each completed item I feel satisfied – as accountants do.
My website, for which I am very proud, is still a work in progress. But I encourage you to take a peek. Here you will find more captivating information about Katherman Kitts including the services we provide, our experience, and a little bit about our clients.
Oh well I do anticipate that I will be commenting on my new adventure from time to time so if you’re interested stay tuned.
Music Video – Los Bank Auditors- I’m on an Audit – Fantastic
Do you think auditors aren’t cool? Well, think again. Los Bank Auditors got it going on. Enjoy a quick break from work and watch this video. It wont disappoint.
Thanks to Accounting Tomorrow for giving me a heads up about this video
Preparer Terror – It’s Real – How to Prevent It
By Stacie Clifford Kitts CPA
A phenomenon affecting tax return preparers often proceeded by recurrent nightmares centered around tax return preparation. People experiencing Preparer Terror may exhibit the following symptoms:
- Extreme anxiety and temporary inability to remember simple tasks such as how to spell your name
- Being jolted from sleep accompanied by an overriding desire to run to the office
- Weight gain or if you’re lucky weight loss
- Constant fear that you are forgetting something – like what return was I working on, where did I put that piece of paper, who am I – ya know stuff like that.
Ways to prevent Preparer Terror:
- Set the proper level of client expectations.
Let your clients know the drop dead due date for receiving 100% of their tax documents. If I receive tax documents after my due date, I let the client know that I might not be able to file the return on time. I will try my best. I’ll even stay up all night. But there are only so many hours in a day. If your stuff arrives late so might your tax return.
- Evaluate your level of staffing.
If you have a tax practice, the notion is that you have some idea how long it takes to prepare a tax return. Um maybe not. Sometimes partners are so far removed from the daily prep grind that they have NO idea how long it should take a staff to prepare a return. The general rule for me is if I can prepare a return in 8 hours, a new staff may take 3 to 4 times that amount of time. So partners, listen to your staff when evaluating your staffing levels.
- Be organized.
Well duh, you say. Well ya this is a duh moment. When your mind isn’t working and you are on the verge of losing it, knowing how and where to find the information you need might save you. So if your administrative staff is responsible for filing stuff away, you had better make darn sure your processes, and procedures are being followed like their lives depend on it!
- Set clear expectations of your staff.
The other day I was visiting a CPA firm, it was pretty late at night, and there were partners and staff in the office working away. Then an extraordinary thing happened, the staff up and left before the partners.
In my day, leaving the office before the partners created a clear and present career danger. It just wasn’t done. I am all about work life balance, heck my kids grew up in my office. However, if you want to have some sort of lasting career in this industry – might I suggest that you get permission before leaving the office during busy time?
Making sure your staff understands what it really means to OWN a project and take responsibility for its completion is an important part of not only managing your firm but also helping to prevent Preparer Terror.
Related Articles
- National Society of Accountants Opposes Any Tax Preparer Exemptions from Proposed IRS Rules (eon.businesswire.com)
- New Rule Strengthens Tax Preparer Enforcement (eon.businesswire.com)
She’s a Neurotic Heathen Slut with a Cinderella Complex, I’m a Bitter, Divorced, Wine Drinking Man Hater – But Do You Have A Life Plan B?
For instance, when I hear from friends news like – “we’re having a baby” or “I’m getting married”, before any form of congratulations escapes my mouth, I am already thinking, tax plan, cash flow, and life plans A and B [you know – do you have a plan B in case plan A doesn’t work out – can we all say prenup’].
Now I suppose this is an excellent trait for your tax advisor or even your lawyer, but I’m thinking maybe not so much for your friend.
Case in point.
Not too long ago I found a book written by an old friend who I had met in college. We had palled around off and on for several years following graduation but had lost touch over the years.
As I settled down to read what she had written, I couldn’t help thinking about how we had met.
I was sitting in a statistics class at a local community college waiting patiently for the class to begin and entertaining myself by watching the students that were timidly walking into the room and quickly finding seats near the door.
I noticed her right away, maybe because she seemed more self-assured than the others did. At first, I even thought she might be the instructor who appeared to be running late.
She stopped in the doorway and assessed the seating situation. Then she walked across the room passing several rows of desks while she cocked her head and smiled over her shoulder.
That’s funny I thought, she reminds me of a beauty contestant flirting with the judges as she walks across the stage.
Before she reached the last row, she spotted a desk that suited her and made her way up the aisle where I was sitting. Then with a slight flourish, she stopped at the desk in front of me, plopped down in the seat and flipped her long blond hair out of her face with the back of her hand where it landed in a messy pile on the top of my desk.
Hmmm that WAS memorable.
Now let’s see – back to the book. The Break-up Diet
I noticed that it had a cute cover, a table of contents and what’s this – a page of acknowledgements. Let’s see what she says here, “My greatest appreciation goes out to”….blah blah blah, my agent, some others, and Michelle somebody – “for being my best friend and chief secret-keeper since seventh grade, and for never suggesting that I come up with a Plan B.”
Urgh. Huh. Ouch. What? Could that be directed at – ME.
That did seem to be my M.O. I looked up from the page and began to think, I do remember – yes – there was a conversation. But – but a Plan B was a completely appropriate suggestion given the situation and her explanation of Plan A. Wasn’t it?
Your plan is what? I asked as my eyebrows rose slowly up my forehead. Did I hear that right? She was going to continue her career as a “professional” dancer [not the good kind] while she wrote the next great American novel and then retired on some tropical island. That – was Plan A.
Now as I have said, my brain works a little differently from maybe an aspiring writer, because I was thinking, ummm doesn’t “professional dancing” [not the good kind] have a shelf life, and considering all the aspiring writers out there, aren’t the chances of being a rich novelist pretty remote?
So being a good advisor, but maybe not such a supportive friend, I suggested that she think of other ways to make a living as a writer, maybe writing for a newspaper, or magazine, or even freelancing. Yep, I’m pretty darn sure I used the term Plan B.
Well, here it was in my hand, her novel [a memoir] maybe not the next great American, but not bad either.
I continued reading on, and the more I read, the more I realized that not only am I portrayed in her book, but I am also a bitter, divorced, wine drinking man hater. Note to my husband – I love you honey – that was long before I met you.
But in all fairness, she recently sent me a note jokingly describing herself as neurotic heathen slut with a Cinderella Complex so I guess we all had our issues.
Funny enough, it does appear that she has happily stumbled onto her Plan B even if she doesn’t realize it. She got married, she co-owns an online magazine directed toward women writers, she is a professional industry speaker and she teaches online classes. All perfectly acceptable, and might I say all within my suggested Plan B’s.
Ping Your Way To a Successful Social Marketing Strategy – It’s A Whole Lot Better Than Being an A-Hole
By Stacie Clifford Kitts, CPA
A few weeks ago, I wrote a post about a company in the tax industry that appeared to be getting some bad advice on how to conduct a successful social marketing campaign. I discovered this unfortunate strategy when the company spammed the comment section of one of my blog posts. Flabbergasted Reputable Tax Service Company acting like an A-Hole
Jumping head first into a social marketing strategy without first understanding how the game is played is likely to tick off the players or at the very least, your company will have a bad social showing. As with all business strategy’s, you really need to make sure you hire advisors that know what they are doing. For goodness sake, people DO YOUR RESEARCH. For the CPA industry there are people who specialize in helping you with your social strategy – Michelle Golden of Golden Practices is one such advisor.
Which brings me to pinging your way to success. Yesterday I was barraged with “pingbacks” on my blog site. A pingback is simply a notification that someone is linking to my site. Wikipedia defines pingback this way:
A pingback is one of three types of linkbacks, methods for Web authors to request notification when somebody links to one of their documents. This enables authors to keep track of who is linking to, or referring to their articles. Some weblog software, such as Movable Type, Serendipity, WordPress and Telligent Community, support automatic pingbacks where all the links in a published article can be pinged when the article is published.
Now in WordPress, my blog host, I also have the option of posting the URL of the blogger linking to my post in the comment section of my blog. It’s kind of like a handy built in quid pro quo for you saying nice stuff and linking to my blog. I in turn allow a link back to yours. Neat! And might I say an appropriate use of the comment section of my blog.
Curious about what all the links were about, I instantly clicked over to read what was being said about my blog. I discovered that they were coming from a company that I assume got some good advice on how to promote their social networking strategy, Tax Resolution University. And let me say, if theirs isn’t a planned strategy, it certainly should be.
I was pleased to read the praise for Stacie’s More Tax Tips offered by blog author Michael Rozbruch at Tax Resolution. His writing shows that he actually read and appreciated the content of my blog. He spent the time to identify elements that he liked and continued on to make great comments in his post Tax Help and Tips from Tax Blogger Includes Refreshing and Candid Look at Issues Facing Today’s Taxpayers here’s some tid bits:
From why she thinks American Express sucks to the true story of a magazine door-to-door sales person who encountered nightmarish tax consequences from her self employment status, Stacie’s unique take is both entertaining and enlightening.
Stacie’s More Tax Tips provides a wide and eclectic mix of tax information. The blog is well organized and quite informative – taxpayers can find excellently categorized information concerning tax, accounting and business advice, mixed in with quirky commentary. The blog offers information published by the IRS, such as IRS Patrol and IRS Presents, news releases and tax tips.
Other great content featured on the blog includes interviews with interesting individuals who put a new spin on everything tax, book reviews, Education Credits, Tax Guidance (need any help filing out those numerous tax forms?), coaching, and types of tax explained. You can even check out Abigail’s story of sex, drugs, and taxes for a bit of jolting tax reading.
While these comments are well thought-out and flattering – heck they make me feel all good inside, more importantly they are a good social networking strategy. Because of this well written post, the Tax Resolution Blog will show up under, the blogs I like category on Stacie’s More Tax tips. And I will allow the ping backs all like eight of them – some quid pro quo.
And just as a side note – Well-done Tax Resolution, your blog campaign tells me that you are a good strategist. This is a wonderful quality to have when you are in the business of resolving tax controversies. I am a fan!
Flabbergasted Reputable Tax Service Company acting like an A-Hole
By Stacie Clifford Kitts, CPA
I was totally amazed a few days ago when I received a spam comment from a reputable organization that describes themselves as premier providers of specialty tax services. Like I mean flabbergasted. I’ve done business with these people. They aren’t stupid. But come on. They don’t know that spam commenting is sleazy and disgusting and just plain wrong?
Needless to say, it really really ticked me off and got me to thinking who the heck is giving out the bad advice.
For those of you who aren’t bloggers maybe you can still understand the premise here. Bloggers put forth effort. You know, a real time investment involving research, examination and compiling of information for their posts. And for the most part, bloggers do it for free. There is the payoff of course, the showcasing of your expertise, the expansion of your web presence, the name recognition yada yada yada.
Then you get some sleaze ball who looks at your blog site (or they hire some slimy low life company that does it for them) and says, gee I’m going to post a spam comment on this blog to get some free advertising off the back of someone else’s hard work.. Come on WHAT TYPE OF A-HOLE thinks that is a good idea.
If you are wondering, what a spam comment looks like. Well – it generally advertises the services of another company. It reads like marketing literature. It links back to someone else’s website, and for the most part has no real reference back to the original blog post. It’s the blog world equivalent of a form letter, cold and impersonal.
Bloggers post content that they often hope will relate back to a reader on a personal level. It showcases not only the writers knowledge, but also their personality and opinions. Think of spammers like this, you are out having cocktails with a friend chatting happily about what knot when some greasy slime bag wedges his way into the conversation and tries to sell you a used car – eewwww get away from me you creep.
The comment section of a blog is meant for readers who are interested in commenting about the post, sometimes a reader thanks you for the information, praises the writer on a job well done, asks a question about the content or maybe the commenter wants to express their own opinion on the subject .
Hello, the comment section of a blog post IS NOT FREE ADVERTISING SPACE FOR YOU OR YOUR BUSINESS. If you want to capitalize on my time investment and my readership, contact me and I will be happy to discuss the fee for advertising on my site.
Part Three – Sex Drugs and Taxes – Nonexistent Commissions and Other Revelations
By Stacie Clifford Kitts, CPA
This is a multipart series about a girl enticed into the indentured life of a door-to-door seller of magazine subscriptions. Her recount of industry practices and the resulting tax consequence is truly shocking.
This story also illustrates the importance of understanding your worker status for employment tax purposes, understanding contracts your employer asks you to sign, the need to research industry practices particularly in door to door sales, accounting and tax issues associated with cash transactions, tax consequences of self employment and Form 1099, the importance of having a Plan B and consulting with the right advisors before making life decisions, oh and gee a bunch of other scandalous stuff.
This story also makes me question why our lawmakers continue to allow this industry to persist in its abuses against America’s youth!
Need to catch-up? Start here:
Part One – How The Nightmare Started
Part Two – Life on the Road With Nick
Part Three – Nonexistent Commissions and other Revelations
Abigail was surprised to find that she was a natural seller. On many days, she was able to bring in more subscription sales than all of the other crewmembers combined. She was elated when Nick pulled up her account on his computer screen and pointed out the commissions she had earned.
Each day Nick would give her a $20 allowance to cover her food and other essentials. But she didn’t care that he wasn’t paying her everything. The small allowance just meant that her commission account was growing.
After weeks of being on the road, Abigail began to notice that all the door-to-door walking was contributing to a significant weight loss. Her old cloths were baggy and looked out of place on her smaller frame. Abigail was ready to draw on her account to buy something new. “Nick, I need some money. These old clothes are falling off. ”
But his answer was not what she expected. “Someone stole the money out of my room,” he explained. “I can’t give you anything.”
“Stole it? What does that mean? When will I get paid?”
“Ask me later,” he told Abigail.
Over the next few days, Abigail continued to inquire about her commissions. But each time, Nick had an excuse for not being able to pay her.
“How can I pay you? He told her one day. “You need to collect cash not checks from your customers. If you don’t collect cash, I wont have any to give you.”
And so the days and then weeks dragged on, and so did Nick’s excuses. She slowly began to accept that he was never going to give her the commissions she had worked so hard to earn.
Other Revelations
Not long after her disillusionment over the nonexistent commissions, Abigail began to develop a loathing for many of her fellow crewmembers. She watched in dismay as they became dependent on the drugs and alcohol that Nick fed them. And she grew to dread the drug fueled party nights and the indiscriminate hookups between the crewmembers.
Even more disturbing to Abigail was the instances of pregnancy. With the close living conditions, access to drugs and alcohol, and little opportunity to seek out birth control, pregnancy turned out to be a direct hazard of the job, a hazard that finally ended the journey for many crewmembers.
Getting out
For months, Abigail tried to think of ways to get out. She was afraid to call her parents. She had abandoned school and skipped out on the apartment her parents had gotten for her. What could she say to them now? How could she explain her behavior?
Worse yet, the company, by design it appeared, hadn’t given her enough money to leave. Nick continued to deny her the commissions she had earned. While on the road, she was transported far from her home state of California to Oregon, Washington, Idaho, and Montana. She wondered how she would get home. She was worried that leaving the crew meant homelessness with nights spent sleeping on the street. She felt trapped by the Company. She was under their control, completely indentured to the crew. She felt like their slave.
Desperate to get out, Abigail finally confronted Nick, demanding that he pay over her commissions. He responded by driving her to a bus stop and stranding her there. Alone and without enough money to get home, Abigail finally relented and tearfully called her parents to beg them to let her come home.
If you would like to learn more about the abuses of this industry – Stay tuned for Part Four – Tax Consequence.
Note: This story is based on true events and is told with the permission of the taxpayer. Names and some events are changed at the taxpayer’s request.