Here’s some quick overview information to go along with that download:
– Don’t send a client into a local Social Security Office unless the issue is very important or dire. The best way to initiate contact is by calling the toll free national number at 1-800-772-1213. Operators are on duty from 7 a.m. until 7 p.m. on business days.
If a client has to visit a local Social Security Office, their normal hours are 9 a.m. to 3 p.m. Monday through Thursday. Select offices may be open on Fridays.
– the Social Security Office website at www.socialsecurity.gov is the best source for information. The handout shows various areas on the site with important information you can quickly navigate to if a client has questions you can’t quickly answer.
Finally, here is a list of Social Security’s Employer Liaison Officers and their contact information (the list is also included in the downloadable handout):
IRS e–File System for Individuals Reopened After Unscheduled Maintenance
The IRS e-file system for individuals is now operating at 100 percent after initially coming back on line on January 17 and experiencing lengthly upload delays after accepting individual and business returns. The system was taken off line without notification on January 18 to fix the problems and returned again to full function on January 19. The IRS admits to not notifying the public of the January 18 action and vows to better communicate information in the future.
IRS “Mission Creep” Becoming Unmanageable?
As we reported last week, National Taxpayer Advocate Nina Olson delivered her annual report to Congress on the IRS and warned of growing problems with an increase in electronic services to take up the growing void in customer service caused by IRS budget cuts.
This week, the IRS began offering qualified employees a $25,000 cash bonus if they accept an early retirement offer. The goal is to entice 400 workers to do so. Some members of Congress are questioning the action while stopping short of saying they should re-visit the adopted cuts. Others are worried that the IRS will have additional duties dumped into its lap as President Obama begins consolidating and eliminating various government departments and bureaucracies to draw down debt.
Why decrease the workforce that generates the revenues for government to operate? Wouldn’t it be smarter to increase that workforce to insure all revenues (taxes) are paid?
Commander Spock of Star Trek fame would probably say, “Humans are an illogical species.”
Concern Grows Over Proposed National Internet Sales Tax Legislation
A new bill making its way through Congress has the potential to change the world of e-commerce quite drastically and hurt the viability of small businesses across the country to compete in a growing sector of our economy.
Currently, online sellers are required to charge sales tax when the end customer resides in a state in which the retailer has a physical presence, or “nexus.” The Marketplace Fairness Act aims to change that. If passed, this law would require online sellers to charge sales tax regardless of where they have a physical presence.
Supporters of this bill are working under the premise that virtual e-commerce retailers, like Amazon, have an unfair advantage over local mom-and-pop shops because they can sell products in many states without charging sales tax. (Technically, the end customers are supposed to report and pay “use tax” on these items, but less than 1 percent actually do.)
What this argument misses is that there are millions of small businesses that sell on these major e-commerce Web sites, in addition their own Web sites. It certainly is fair to require them to charge sales tax in their own state, just as small businesses on Main Street are required to do. What isn’t fair is to make them manage, track, collect and then remit sales tax for thousands of local jurisdictions that have different rules and regulations.
A business on Main Street can easily manage its sales tax because it only needs to learn the local regulations. But an online small business would have tens of thousands of different rates that they might need to charge depending on the jurisdiction of the buyer and what they bought. Read More
Congress Mulls Disclosures of Tax Information
The Government Accountability Office has provided Congress with a guide for screening and assessing proposals to disclose confidential tax information to specific parties for certain purposes.
The GAO report, which was drawn up for Sen. Max Baucus, D-Mont., the chairman of the Senate Finance Committee, and Sen. Charles Grassley, R-Iowa, the ranking Republican member of the Senate Judiciary Committee, noted that the Internal Revenue Service receives a great deal of personal information about individuals and businesses.
“While taxpayers are required to provide this information to IRS under penalty of fine or imprisonment, confidentiality of information reported to IRS is widely held to be a critical element of taxpayers’ willingness to provide information to IRS and comply with the tax laws,” said the report. “As a general rule, anything reported to IRS is held in strict confidence.” Read More
Practice Builder Tips
Five Keys to Successful Customer Service
by Joanne Hayes, Tax Preparer Connections
You can work hard to bring new customers in the door, but if you are not giving them a quality product and good customer service, they won’t stay. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue.
When it comes to preparing taxes that relationship is very important. Your customer needs to know they can trust you and rely on you. And when they have confidence in you, they are more apt to refer you, which brings in more business.
People want to feel heard, important and appreciated. Here are 5 key ways you can make your clients feel like they are getting the best tax service out there.
1. Don’t make promises you can’t keep
If you let your client know you will have something ready for them by Thursday, have it ready by Thursday.
It’s easy to promise the world up front because you want to please your client. But that can get you in trouble. Nothing annoys people more than a broken promise, no matter what your excuse is.
Instead tell them you’ll have it ready by Friday, but try and get it ready for Thursday. That way if something comes up, you have some room to still meet your deadline. But if you finish early and let them know it’s ready early, you have over delivered on your promise. Read More
Here are some great practice builder and management articles we’ve run this fall that can help you better manage the upcoming tax season:
Effective for 2012, the fee to take the Special Enrollment Examination to become an EA has increased from $101 to $105 per part.
EA Renewal Update
All correct and complete Form 8554 for renewals with SSNs ending in four, five or six that were submitted before November 28, 2011, have been processed and cards issued. All remaining Forms 8554 require further research. The Return Preparer Office (RPO) will begin processing renewals for SSNs ending in seven, eight, nine or none no later than January 30, 2012.
RPO is also working to process new applications on Form 23. The new applications inventory should be current and back to the normal 60-day response time by January 30, 2012.
RTRP Testing Ongoing; Site Expansion Coming
Hundreds of tax preparers have taken the RTRP exam and a substantial number of others are scheduled to take the test in the upcoming weeks.
The beta phase of the exam is expected to be complete by March. This means, the IRS expects to provide test scores to those who have already tested and will begin to implement same-day results by approximately March.
While all Preparer Tax Identification Numbers from last tax season expired on December 31, the Internal Revenue Service said its PTIN system would continue to accept renewals after the 12-31 deadline.
The IRS said that anyone who has experienced technical difficulties attempting to renew should review these online troubleshooting tips. In January, the IRS plans to send additional guidance to individuals with expired PTINs.
PTIN System Outage for 1st Time Applicants
The Preparer Tax Identification Number system is not available for new PTIN applications until January 9, 2012 at 9:00 a.m. The system outage does not affect existing PTIN holders wishing to renew for 2012.