New Clients - 2018 Tax Year

Curious if anyone is noticing an uptick in prospects/new clients due the TCJA changes. I have a theory that a lot of DIYers are going to freak out when they see the new 1040 and its six schedules and contact a pro.

I've had 4 prospects contact me in the past 4 days and schedule a phone call, which is a lot for me as I haven't been on my own more than a year yet.

Wondering the same thing. Signature on front, dollar amounts on back, which is change from inception. How many DIYers will flip page 1 and 2 and send to the IRS backwards. If that happens what will IRS computers do. Could be a very interesting year.
We certainly have plenty of ammo if clients ask why fees do not go down since it is a postcard now.

Drake prints page 1 and page 2 on one page since they're half-pages, one on top of the other. I imagine most tax software will be the same, professional or DIY, so it may not be an issue.

Buy yeah, should be an interesting year.

I already got 2 calls since New Year from relatives of clients asking questions related to the tax law changes. These people were all DIYers. I am trying to explain the tax law changes in very generic terms with the hope they would engage me to actually prepare their returns. So far one looks promising because it may involve QBI. She is a self-employed party/event planner and her husband did their MFJ return.

I already got 2 calls since New Year from relatives of clients asking questions related to the tax law changes. These people were all DIYers. I am trying to explain the tax law changes in very generic terms with the hope they would engage me to actually prepare their returns. So far one looks promising because it may involve QBI. She is a self-employed party/event planner and her husband did their MFJ return. :roll:

With DIY types, you may also find yourself doing amended returns for the prior year or two. Sometimes, you will get them enough back to pay for your services in the current year as well as covering the cost of an amended return. Those folks tend to stick around as clients.

Back in the day, I would often do a free 1040X to correct some issue that got them a certain credit or bit more refund for a DIY return. Then I had a bad experience so I am very careful now to touch anything that a DIY did previously. I will do a 1040X or other changes if the IRS CP2000 was involved.

I wouldn't let one bad experience scare you away from doing amended, especially since they are a nice revenue boost. as mentioned many new clients make major mistakes and we can amend. but please oh please don't anyone do an amended return for free, ugh.. question: how do we find these people who are intimidated by new tax changes and get in contact with these new potential clients?

question: how do we find these people who are intimidated by new tax changes and get in contact with these new potential clients?

They seem to be finding me!

Then I had a bad experience so I am very careful now to touch anything that a DIY did previously.

Care to describe...for educational purposes?

I expect to be turning new people away by mid February. Going to pulse the local chapter NAEA group at next week's meeting to see who has capacity.

If they really want to work with you specifically, why not take them on with the understanding and agreement that an extension will need to be filed this year and the return will be completed May/June? It's not unreasonable.

Granted you'll need to take into consideration potential extension payments.

I am a lawyer in California. I have had numerous requests for advice regarding the recent changes in the law. I previously avoided providing tax advice as a matter of policy, but it's become so important and so often asked for that I finally gave in this year. As a new tax practitioner, let me just say: I am amazed at how interested people are in taxes and saving money versus how little they are willing to spend to actually gain the benefit of tax advice. I charge hourly and unfortunately, most people are simply not willing to spend that much even if it only takes me a couple of hours to do something. Most prospects I'm actually looking for (self-employed individuals with challenging situations) are already well-taken care of by other tax professionals. It's been an interesting learning process, and throwing my hat in the ring is directly related to the new aspects of the tax law.

Then I had a bad experience so I am very careful now to touch anything that a DIY did previously.

Care to describe...for educational purposes?

DIY screwed up Form 5695. Gave me the wrong information when I attempted to fix the problem.

Today had a young lady come to the office who did her tax return on Turbo Tax and it got rejected twice by IRS. She got the e-mail that it was rejected but could not log back into her account to get me a copy of her return or the reject codes! Tried to call support, no live person. She had to leave an e-mail to get help.

Then I had a bad experience so I am very careful now to touch anything that a DIY did previously.

Care to describe...for educational purposes?

DIY screwed up Form 5695. Gave me the wrong information when I attempted to fix the problem.

Today had a young lady come to the office who did her tax return on Turbo Tax and it got rejected twice by IRS. She got the e-mail that it was rejected but could not log back into her account to get me a copy of her return or the reject codes! Tried to call support, no live person. She had to leave an e-mail to get help.

Turbo Tax - advertises to the public "CPAs on Demand" - if she can't reach a CPA-On-Demand she's be defrauded -advise her to file a Consumer Complaint with the FTC.

Turbo Tax - advertises to the public "CPAs on Demand" - if she can't reach a CPA-On-Demand she's be defrauded -advise her to file a Consumer Complaint with the FTC.

All the language at their web site states "CPAs or EAs", plus as you already know the fine print specifically states they are talking about Circ. 230 professionals, not just CPAs.

"Have a real CPA review your deductions so nothing gets missed
Talk to real CPAs or EAs on demand
Important Offer Details and Disclosures"

Thank goodness they are helping to educate the public on the EA credential and how EAs are the only federally licensed tax professionals with unlimited practice rights before the IRS.

Turbo Tax - advertises to the public "CPAs on Demand" - if she can't reach a CPA-On-Demand she's be defrauded -advise her to file a Consumer Complaint with the FTC.

All the language at their web site states "CPAs or EAs", plus as you already know the fine print specifically states they are talking about Circ. 230 professionals, not just CPAs.

"Have a real CPA review your deductions so nothing gets missed
Talk to real CPAs or EAs on demand
Important Offer Details and Disclosures"

Thank goodness they are helping to educate the public on the EA credential and how EAs are the only federally licensed tax professionals with unlimited practice rights before the IRS.

Nonsense makbo - the TV ads do not include EA at all - they state clearly "CPAs on Demand" that is their "tag line".
The inducement to buy their product. After the gullible buyer makes a call to speak to a CPA - then does the "bait & switch" develop.

[/quote]Turbo Tax - advertises to the public "CPAs on Demand" - if she can't reach a CPA-On-Demand she's be defrauded -advise her to file a Consumer Complaint with the FTC.[/quote]

You have to signup and pay for the CPA on Demand service. I don't think it is automatic. Anyways there is no live phone support that she could find. She had to follow this process to access her account:

We require documentation that establishes your identity. We can accept these documents as digital scans, photographs of your ID taken with your phone, etc. Any photo ID submitted should be clear enough to make out the features of the person pictured in the ID.

Please provide a non-expired copy of one of the following as Proof of Identity:

US Driver's License
State Issued ID with address
Notarized document with your name and address
US Passport

I'm sure TurboTax is swamped trying to keep up with the TCJA changes as well as answer questions from Mom & Pop small business operations who refuse to hire a tax pro.

I'm sure TurboTax is swamped trying to keep up with the TCJA changes as well as answer questions from Mom & Pop small business operations who refuse to hire a tax pro.

Sure, the Mom & Pop "who doesn't want to pay a CPA" grabs $100-bucks of "TurboTax CPAs on Demand" while shopping at Costco - thinking great deal - I get to cheat - get the result I want - and can call "On Demand a CPA" for anything I've missed. And no one telling me "no you can't deduct that".

I am a lawyer in California. I have had numerous requests for advice regarding the recent changes in the law. I previously avoided providing tax advice as a matter of policy, but it's become so important and so often asked for that I finally gave in this year. As a new tax practitioner, let me just say: I am amazed at how interested people are in taxes and saving money versus how little they are willing to spend to actually gain the benefit of tax advice. I charge hourly and unfortunately, most people are simply not willing to spend that much even if it only takes me a couple of hours to do something. Most prospects I'm actually looking for (self-employed individuals with challenging situations) are already well-taken care of by other tax professionals. It's been an interesting learning process, and throwing my hat in the ring is directly related to the new aspects of the tax law.

For some reason, clients have more trouble accepting the fees/hourly rates for a Tax Accountant than they are from Lawyers, doctors, contractors, etc.

I find that charging a billable hour/hourly rate is off putting to Tax clients, so what I have done is do my best to incorporate the hourly fee I have in my mind, into some "fixed" pricing/fees on the engagement letter.

It involves estimating and calculating how much time I will spend on the account, so of course I make sure to include a "buffer" to account for that. Sometimes I'll end up severely undercharging, so I will update with an increased fee on next year's engagement letter.

Being a new tax practitioner, it may take you a couple of years to truly gauge the amount of time you spend on such matters, though.

when i do specifically state an hourly rate is for when I represent clients for audits and such. I spend time and money driving to IRS offices and speaking on the phone with them, the hourly rate is the only way to go when it comes to representation services.