Solo Tax Review

Any solo tax preparer knows how difficult it can be to prepare a complicated return and then also review it again. One area I did make a mistake in a prior year was an entry for a 1099-MISC that did not actually end up flowing through to income, and I failed to catch it. I have always reviewed to make sure everything of relevance was entered; my issue was in the fact that I was not verifying total income against the totals of source docs, and for this particular 1099 I had it entered in one place but not another that actually allowed it to flow through as income. I have modified my habits to help with this, but looking for a more efficient method.

Have other solo tax preparers found any simple and efficient way of inputting income figures (my biggest concern) into a spreadsheet or similar to quickly compare to Page 1 Total Income on the 1040?

Since I also work alone, I use a summary input sheet. I hand write totals for interest, dividends, capital gains, withholding, etc. based on the source documents.Then I input everything into the computer from the source documents. If my input summary is different from what the computer shows, I investigate why. It’s an extra step, but it has saved me several times. I pretty much know what my total income should be based on manual calculations, with a few exceptions such as taxable social security etc.

That's what I was thinking, but was wondering if anyone had a nicely developed spreadsheet to utilize, for example. I can build my own but prefer not to based on time...

That's what I was thinking, but was wondering if anyone had a nicely developed spreadsheet to utilize, for example. I can build my own but prefer not to based on time...

So i almost never input a 1099 MISC…. If its a realtor etc… i simply put that amount on the schedule C. If there are 2-3 of them, i add them up in a worksheet within proseries. Just curious, why do you input a 1099 MISC???

To your question, I have a W2 tally sheet i use on excel. I worked for Block in the 80s when in college and they had a summary sheet to use when more than 1 W2, 3 or more 1099 INTs etc. BUT, we still make mistakes too. It’s so difficult not too.

My process is similar to Seaside's. I have an Excel schedule with linked sheets. The first sheet spreads the items from K-1s. The second sheet is Sch B. Its totals carry to the first sheet (first half of the sheet is K-1 detail, second half summarizes the other sheets). Sch D summaries. Etc. It is an efficient way to check the output of clients with lots of K-1s and/or lots of brokerage account activity.

I check the totals to the Lacerte output. Then I print Lacerte's tax summary sheets and check that info to whatever is left in the workpapers that didn't make it to the Excel schedule.

I developed this system over many years. For 20 years, I had a client who started out with 10 different hedge funds but by the time he split had over 60. There was no way to efficiently check input. Instead, it was about the output. What did I expect to see? If I saw something else, was it because Lacerte is smarter than I or because of a typo in my entry in either the Excel sched or Lacerte?

All of that said and done, sometimes we make mistakes. Say sorry and fix it.

My client the oversight occurred with doesn't care; they're one of the people that will own up to the fact they overlooked it, as well, and therefore cannot hold me responsible outside of P&I.

My tax returns are becoming far more complicated, overall, so I need to explore streamlined methods of quickly entering numbers to arrive at an expected output concerning total income I can review against, besides also verifying everything was entered in the first place.

And southparkcpa, it was a stupid error on my part when I was somewhat new to using Lacerte. The 1099 was not self-employment activity--it was other income--and I simply entered it in the wrong spot for it to actually flow through as income. I never caught it in review. If you're familiar with Lacerte, there is an "other income" section that flows through as income to 1040, and then a 1099 informational section that you enter numbers into as well (or "can," since it is optional)...I did the latter, not catching it did not flow through as income. I am used to the method you use--Schedule C, for example.

I can send you a tie-out worksheet that has a questionnaire I use to make sure, I understand the situation. What I will say is that if you use Drake, you literally have to go line by line on every return. I moved from UT at the firm I worked at before going out on my own and Drake does some funny things...

I can send you a tie-out worksheet that has a questionnaire I use to make sure, I understand the situation. What I will say is that if you use Drake, you literally have to go line by line on every return. I moved from UT at the firm I worked at before going out on my own and Drake does some funny things...

Warnick.. I would LOVE to see it. Could you send to me? I would be grateful

Use my personal E mail southparkcpa at yahoo

I keep two spreadsheets. One reconciles source docs to taxable income, which Cornerstone has already mentioned in this thread. The next is my own design of what was called Form 930 in the UK. It allocates income and deductions amongst rate bands, giving a further check on AGI, TI and tax. I work from source docs in both cases.

I keep an excel workbook for things like FTC, capital gains and USGO, especially if there are multiple brokerage accounts. I also keep Schedule C and rental spreadsheets, particular to each client, which allows me to make sure I have not missed anything on those schedules.

All of this adds time but I do not think I could sleep if I didn’t have some way of reviewing my work. I also have a rule not to review the same day I prepare and to have looked at another return between preparation and review.

When I get a clients info I separate by type and in the order it shows on the 1040. Once I’m doing I will add up the source docs and compare line by line to the 1040, including schedule A if they itemized and then check fed and state W/H. From there I go through each form to make sure it looks like I think it should, and check the state of there are any adjustments for nontaxable state items. I also look at the prior years return and if there are any major differences I make sure I understand and agree with them.

I’d love to see some of these spreadsheets though, may be cleaner than how I’m doing it.

warnick, I sent you a PM with my e-mail. I'll be very appreciative if you can send me your worksheet so I have an idea, or potentially be allowed to utilize it. I use Lacerte, not Drake.

All of this adds time but I do not think I could sleep if I didn’t have some way of reviewing my work. I also have a rule not to review the same day I prepare and to have looked at another return between preparation and review.

This has been one of my "internal controls" on reviewing for quite some time.

Any chance you can send me a blank copy of your first worksheet that reconciles source docs to taxable income? I can't remember if you have my e-mail or not but I'll PM it to you if you don't mind...

Cornerstone, I've sent you an e-mail with attachment and a PM. I can't take credit for this spreadsheet. Although I added a bit here and there, it is very heavily based on one created by my first tax employer in this country. He developed it a good couple of decades ago and, like all good ideas, it still works.

Cornerstone, I've sent you an e-mail with attachment and a PM. I can't take credit for this spreadsheet. Although I added a bit here and there, it is very heavily based on one created by my first tax employer in this country. He developed it a good couple of decades ago and, like all good ideas, it still works.

Any chance I could take a peek??

My personal E mail is...

southparkcpa at yahoo????

I'm going to guess the Yahoo address is a standard American one! Template on its way now.

Thanks to everyone that has sent worksheets I can look over.

I wish we had a specific and private forum section to exchange workpapers. I suspect it would become well used.

I'm going to guess the Yahoo address is a standard American one! Template on its way now.

Yes sir…. Thank you!!!!!

I usually do the returns and then put it away for at least a day or two before reviewing them. I created excel worksheets to track items. For 1099-Misc, I input line by line on Drake and check each item under Overview.

I do the same TaxTax. Always a night's sleep and I always work another return before reviewing the first one, so that my brain is clear of any notions of what I expect to see when i am reviewing.

I also will review a day or two after I've prepared the return. Feels like a new set of eyes going over things.

These days you can scan and import all the date from the documents.
Reviewing the input is like reviewing an associate’s work.