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Tax Season Pep Talk

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Welcome to CPE at:

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CPE Credit Guidelines

• You must be in attendance for the entire session.

• There will be polling questions periodically; you must answer all polling questions to receive credit.

• CPE certificates will only be available to those attendees who stay for the entire session.

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• Click the Chat panel

• Type your question in the 

To ask a question

yp y qtext field

• Click Send

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• Partner, WithumSmith+Brown

Presenter: Ed Mendlowitz, CPA

• AICPA credentials: PFS, ABV, CFF

• Admitted to practice before U.S. Tax Court

• On BottomLine/Personal panel of experts

• Author of 18 professional booksut o o 8 p o ess o a boo s

• Testified twice before House Ways and Means Committee on tax reform.   

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Managing Your Tax SeasonSome of the material in this presentation has appeared in: Managing Your Tax Season, Second Edition by Edward Mendlowitz, published by the AICPA, and is subject to their copyright, and has been used with permission and cannot be reproduced without their permission. 

Polling question #1

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Tax or busy season?• Partner or shareholder?

• CPA or accountant?

• New York Giants or New Jersey Giants?

• Yankee Stadium or Bank of America Stadium?

• Super Bowl or Tournament of League Winners?

• Perception or reality?

• No new business leads

• No extra trainingg

• No experimentation

• No trying new things

• No relaxation or joke time

• No time off

• No skiing

• No special projects

• No publicity or articles

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Nothing new???

Advantages of tax season• Tax season is profitable

• The sharp concentration of work creates the need for innovation, quick training and opportunities for staff growth and empowerment pp g p

• Separate business with continuous product development, work efficiency improvement, and service program upgrades. 

• The concentration of work makes the staff grow quicker

• The tax laws changes create a level playing field for all in firm

• When you meet people who possibly can become clients, or hear you are a CPA, they usually ask a tax question

• Taxes lead you to the best opportunities to get new clients

• Tax season is a relationship builder

• Staff working late get “free” dinners

• Staff going home late do not have congested traffic to deal with

• Everyone knows about tax season, so you can get out of going to third birthday parties of your spouses’ cousins‐in‐laws’ kids

• It is fun! 

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Each package contains exactly the same pasta 

A revolution has overtaken photo taking• Or was it evolution?

• It didn’t happen over nightpp g

• Many saw it coming

• Technology changed the way

photos are taken, “developed”

and transmitted

• Photo skill levels have increased

exponentially

• More people than ever are doing it

• Photo taking is more fun

• Compare this to the tax business!

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What we do

What we doIt ain’t just 1040s

Where do new ideas come from?• Entrepreneurs are the most creative people I know

• CPAs that started their practices are entrepreneursp p

• CPAs that became partners in firms and are in managing and leadership positions need to be entrepreneurial

• Each CPA in practice falling into the above 2 categories are naturally creative

• What new ideas have you come up with lately?

• Go for it!You don’t need to be in a design or artsy type of business to be 

creative

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Interacting with clients

• Manage your client contacts• You must have frequent “contact” with your top clientsYou must have frequent  contact  with your top clients• Return all calls promptly• Respond to all email and postal mail promptly – by the client’s meaning of prompt, not yours

• Commit to realistic deadlines and meet those deadlines

Unpleasant clients 

• Unpleasant clients don’t go away…p g y• …unless you drop them• If you don’t want to drop them, then try to give them priority

care so they won’t pester you so much*

* Sounds like a stupid thing to do. Giving them better attention than your nice clients. Well, it’s your business, run it anyway you want

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What makes a good client• Clients that do what they say they will do

• Clients that do the work organizing their documents

• Clients that give us estimated amounts and tell us they are estimates and how they arrived at it and why they cannot give us the actual amounts

• Clients that pay their bills promptly

• Clients that call the partner to complain about a bill

• Clients who complain right away when they are upset with something

• Clients that make us explain clearly what we tell them to do, and who don’t give the go ahead without fully understanding what is to be donedon t give the go ahead without fully understanding what is to be done

• Clients who review the work we send them when it is received

What makes a good client (continued)• Clients that use technology fully

• Clients that are not litigious

• Clients that understand that taxes need to be paid to maintain our society

• Clients that realize that banks and finance companies need back up and documentation when they lend funds

• Clients that understand that we sometimes might make a mistake, and who accept a rational and reasonable explanation and who won’t keep bringing it up months and years later

• Clients that occasionally thank us for our efforts on their behalf

• Clients that refer potential clients

• Clients who are happy with their lives

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Benefit of clientsClients are fun

You like being in your own businessg y

Some clients are “celebrities” and you like the bragging rights

You have staff and you need to keep them busy, so you need clients

You make your living from clients

When clients complain

• They are true friends• They like youThey like you• They want you to fix the problem because they want to continue being your customer

• When a client complains…• Deal with it immediately• Recognize importance of complaint or issue to client…and feel it• Opportunity for you to improve and bond a stronger relationship

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Polling question #2

You drop dead!You drop dead!What happens?

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Polling question #3

More effective staffing

• Settling retards growth and reduces your output• If you have a bad apple – get rid of them now ‐ don’t planIf you have a bad apple  get rid of them now  don t plan on waiting until after tax season ends

• Try this for yourself• Great staff person• Time spent by you interacting with them: 10% • Time spent reviewing their work: 5%• Available time for you to work on other things: 85%• Work done by them independent of you: 90% y p y• Lousy staff person• Time spent by you interacting with them: 20% • Time spent reviewing their work: 20%• Available time for you to work on other things: 60%• Time spent by staff person correcting their work: 20%• Work done by them independent of you and error correction: 60% 

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More effective staffing (continued)Getting rid of a bad staff person and not replacing them gives you 40% more of you.  Note you were only getting at best, 60% from them, and your efficiency, organization, work habits and quality should offset that 20% loss if you had to do all the work you hired them to do.Question: Is everything that a staff person does absolutely essential, or would some of the work or procedures be eliminated or done differently if you were doing it 

lf?yourself?

More effective training• Are you in business to get through this tax season

• Or for the long haul?g

• If for the long haul, spending extra time now in effective training so the staff people get it right is an investment in your firm’s future

• If you neglect to do the proper training now so you could get through the day and get some extra returns out the door, you will never grow and will be doomed to repeat this tax seasonwill never grow and will be doomed to repeat this tax season every tax season in the future – aren’t you getting tired of that?

• How many clients do you advise that never make investments in their business? Why aren’t you? 

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Put consistency in your QC procedures

• 9 times in a row: right• And thenAnd then• 10th time: relaxed• Result is that the procedures will not be followed thereafter

• Be consistent – take the long view

Routinization

• Set up standardize procedures and checklists as much as possiblepossible

• Whenever you find yourself doing something for the 3rd time, make up a checklist for it

• Automate, outsource, fool‐proof, duplicate and standardize processes

• Once organized, you’ll never again have to think about those steps

• And now you’ll have a business and not an accounting practice where you happen to work for yourself 

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Training staff – slow vs fast• Cost of slow person with no errors vs cost of fast with errors

• Slow and deliberate worker’s learning curve vs fast and rushed worker’s glack of learning curve

• Quality of return when preparer self‐checks vs lack of quality when work is not self‐checked

• When starting with someone new, a mediocre manager prefers a fast error prone worker over a slow error free worker

• Over time, a manager prefers a worker who doesn’t make mistakes over one that does

• Slower deliberate workers are usually smarter than fast error packed workers

• Reliance of manager grows as slow worker progresses and drops as fast worker progresses

Learning taxes is ~ learning to hit a boxing bag

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Learning to hit a boxing bag• Hitting the bag requires keeping your eye on the bag and also 

requires slow deliberate efforts when you start out

• When training someone or giving them something new to work on, break it into small steps and emphasize a slow deliberate effort

Polling question #4

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Reviewing returns• You should have clear review procedures…

• …that are routinely followed…y

• …with trained reviewers

Reviewing tax returns

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REVIEWER’S CHECK LIST FOR INDIVIDUAL TAX RETURNS

Client________________________ Year____ Date Prepared_________ By_____________

Following is a suggested checklist of things for the reviewer to do:

Review entry for client’s name and address

Review all Social Security numbers (if this is first year doing this client’s return)

Review tax comparison worksheet – current and prior year’s summary information. Obtain

explanations for large variances, differences, inconsistent amounts, and surprise items

If a projection was prepared, review large differences between projection and actual return

Were estimated tax payments entered properly on Tax Payments Worksheet

Re ie K 1 inp t

500 requests and downloads in 3 days

Review K-1 input

Review W-2 input

Does total of all 1099s tie in with amounts on return

Were carryforwards entered properly and accounted for

Were gross sales from security transactions reconciled with 1099s (we have form for this)

Compare federal to state returns looking to see that add backs and reductions seem logical

Were items on flag sheets, notes based on discussions with client during the year, and

knowledge points in XCM considered

Look at client’s correspondence and notes that accompanied tax information to see if

applicable to the tax return preparation or if it requires separate follow up actions

Address any notes or comments by a partner

Look at tax notices for last year to see if they affect current year’s return y y y

Should be no diagnostics, open or unresolved items

Were all questions on the preparer’s checklist answered. Should be no unanswered items

Were special instructions on the control sheet followed

Compare last year’s return with this year’s rerturn if Excel sheet was not prepared

Were last year’s unusual or large items reviewed to see if they were applicable for this year

Was there any follow through by client on tax or financial planning recommendations made

last year. Report any comments:

_________________________________________________________________________

________________________________________________________________________

Were opportunities identified for tax or financial planning for the client (complete separate

worksheet). This should be followed up after tax season. Put on XCM calendar with date.

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Why not?

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AICPA tax division checklists

Mini  ‐ 2 pagesShort ‐ 9Long ‐ 31

Websites for first level researchYou can use many websites to get quick tax answers and get pointed in the right direction for major questions you need answered. Searching the Internet is a lot easier than getting up and thumbing through a book for answers.

• www.irs.gov—An excellent website that is searchable and can put any IRS form and instructions in front of you in about 30 seconds.

• www.ustaxcourt.gov—The United States Tax Court’s website includes all cases from May 1986 to present and is searchable.

• www.pwacpa.com—This is Barry Picker’s website, which has a useful range of tax article links. Go here to find quick answers to many of your questions or to get ideas of discussions you can have with clients.

• www fidelity com or www schwab com or many other major brokerage firms They have• www.fidelity.com or www.schwab.com or many other major brokerage firms—They have excellent websites, with a wide variety of resources covered and explained.

• www.360financialliteracy.org—This AICPA‐maintained website features a tremendous range of financial and tax information aimed at lay people. The website also covers planning for every life stage. There are charts you can print and use with clients.

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• www.feedthepig.org—This AICPA‐maintained website helps those aged 25 to 34 spend and save more thoughtfully. It includes several interactive tools.

• www.google.com/finance—This website permits you to search the historic cost of stocks. After working through the website’s navigation a couple of times, you’ll be able to get what you need in less than 30 seconds. 

• www.yahoo.com—Many times, I just type in the topic or issue I am working on and Yahoo search gives me suggestions of where the answers may be.

• www.moneymattersnj.com—This website is run by the New Jersey Society of Certified Public Accountants and has searchable articles.

• www.withum.com—My firm’s website has some great articles and tax tips. In addition, most large CPA and law firm websites have searchable articles. So do the websites of many other firms.

• www.leimberg.com—This website has links to many websites and is organized by topic, making it a good first stop as you research. Leimberg also has an e‐newsletter that I subscribe to for updates on estate, gift, retirement and financial planning. There is a charge,subscribe to for updates on estate, gift, retirement and financial planning. There is a charge, but if you are seriously involved in those areas, it is well worth the money.

• www.natptax.com—The National Association of Tax Professionals (NATP) website is also a great first stop, with a wide offering of links to specific subject sites. I am a member of the NATP, and I get frequent e‐newsletters that are well worth the annual membership fee. The NATP also offers members a tax research service at very nominal fees (with a yearly freebie) for most questions.

• Some others to occasionally check out: 

• www.whitehouse.gov

• www.house.gov and www.senate.gov

• www.access.gpo.gov/su_docs/aces/aces150.html ‐ Congressional Record

• www.bna.com

• www.amazon.com – To check out books and book reviews on subjects you might be interested in

• www.aicpa.org – To search for articles that appeared in the Journal of Accountancy and Tax Adviser

• Join Connect Open Forum chat site at www.njscpa.org. If you are a member of NJSCPA, you should participate in this

• All my checklists are downloadable at: 

http://institute.accountingtoday.com/downloads/taxseason.html

• Download my Journal of Accountancy article at:• Download my Journal of Accountancy article at:http://www.journalofaccountancy.com/Issues/2011/Jan/20103384.htm

• Visit my personal website: www.edwardmendlowitz.com

• Email me your favorite websites and I’ll add to this list and post to NJSCPA Connect Open Forum. emendlowitz@withum.com

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Revenue from clients• Understand the lifetime value of a $300 client• 20 years x $300 = $6,000 with no fee increases• 20 years with 5% per year increases = $9,900• Multiply that by 25 clients you lose because you did not care about them or because of a missed opportunity to show you cared ‐ something like $200,000

Quicker billing

• Fast billing equates to the clients’ perception of a professional 

business attitude by the CPAbusiness attitude by the CPA

• The quicker you bill the quicker you’ll be paid

• Send bills with the return

• Accept credit cards

• Do partial bills and retainers where appropriate

• Make sure you have Crystal Clear fee arrangementsy y g

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Get the return done• Uncompleted returns are W.I.P. inventory

• Make frequent follow up calls to clients to get missing infoq p g g

• Eliminate extensions – if you get the work in, get the work out

• Occasionally extensions are underpaid as are resulting current year estimates causing interest and possible penalties

• Extended returns sometimes cause big balance due surprises

• Extended returns create a mini tax season in Sept/Oct and it is h h d h ff k i k dmuch harder to have staff work overtime or weekends

• Extended returns cause you to live in the past…

• … and thwart current year thinking and planning

• Extended returns slow up cash flow

476 pages [2010 books not available at press time]

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Getting paid for what you know

Reverse value billing• Multi State Kids’ returns

• Tax notices

• Amended returns

• Client handled and caused screw‐ups

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Value Billing languageSample wording included in engagement letter:

We base our fees on time required at our regular rates for thetype of services and personnel assigned plus out‐of‐pocketcosts and relevant computer charges. We also giveconsideration to the difficulty and size of the assignment, thedegree of skill required, time limitations imposed on us byothers, the experience and ability of the personnel assigned,, p y p g ,the nature of the project, the level of cooperation by theclient’s staff, and the value of the services to the client.

Every bill is a value bill• In client’s judgment, they have to believe the value is greater 

than the cost, otherwise they wouldn’t be your client

• If that value becomes less than the cost, you may not lose the client right away, but you will eventually because the relationship has eroded

• To keep the client you need to make sure the value you provide is greater than the client’s cost

• You shouldn’t assume the client knows the value of what youYou shouldn t assume the client knows the value of what you add makes the value to the client greater than their cost*

• You need to communicate that value to the client

*Unless you are a commodity only tax return preparer. Note: A commodity exists when the customer is unable to differentiate services or products

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Minimum fee schedule

How to know if you are charging right fee

If, at the end of the year, you’ve made a living, paid all your bills , y , y g, p yand funded your pension plan, you are charging the right fees

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Taken at depth of recession at a MallP.S. All the other stores were empty.

Polling question #5

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Deliverables to Clients

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How impressions are formed

Client follow‐up is a courtesy*

* And smart business

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IllustrationDo not get caught up on the #. Each

Tax summary worksheetSchedule EProperty 1

2007 2008 2009 2010Rent income 102,000 108,720 86,001 123,009up on the #. Each 

property has the same 4 years, but in a different order. The purpose of this and the next 6 slides  is to illustrate a quick 

Advertising 3,400Cleaning and maintenance 3,360 3,461 3,565 3,672Commissions 14,200Insurance 9,200 9,936 10,731 11,589Legal and professional fees 800 800 3,100 800Mortgage interest 39,890 38,494 37,147 35,846Repairs 1,200 1,600 18,800 2,300Supplies 346 362 378 395Taxes 14,800 15,466 16,162 16,889Utilities 4,480 4,682 4,892 5,112Otherand  easy way of 

presenting activities to a client.1 of 7

OtherInspection fees 1,200Snow removal 2,400 2,400 2,400 2,400

Depreciation 19,880 19,880 19,880 19,880

Total expenses 96,356 97,081 135,855 98,883

Net income 5,644 11,639 -49,854 24,126

Tax summary worksheetSchedule EProperty 1

2007 2008 2009 2010Rent income 102,000 108,720 86,001 123,009

Advertising 3,400Cleaning and maintenance 3,360 3,461 3,565 3,672Commissions 14 200Commissions 14,200Insurance 9,200 9,936 10,731 11,589Legal and professional fees 800 800 3,100 800Mortgage interest 39,890 38,494 37,147 35,846Repairs 1,200 1,600 18,800 2,300Supplies 346 362 378 395Taxes 14,800 15,466 16,162 16,889Utilities 4,480 4,682 4,892 5,112OtherInspection fees 1,200Snow removal 2,400 2,400 2,400 2,400

2 of 7

Depreciation 19,880 19,880 19,880 19,880

Total expenses 96,356 97,081 135,855 98,883

Net income 5,644 11,639 -49,854 24,126

Add back depreciation 19,880 19,880 19,880 19,880Less mortgage amortization -10,110 -11,506 -12,853 -14,154

Cash flow 15,414 20,013 -42,827 29,852

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Property 2

2007 2009 2008 2010Rent income 102,000 86,001 108,720 123,009

Advertising 0 3,400 0 0Cleaning and maintenance 3,360 3,565 3,461 3,672C i i 0 14 200 0 0Commissions 0 14,200 0 0Insurance 9,200 10,731 9,936 11,589Legal and professional fees 800 3,100 800 800Mortgage interest 39,890 37,147 38,494 35,846Repairs 1,200 18,800 1,600 2,300Supplies 346 378 362 395Taxes 14,800 16,162 15,466 16,889Utilities 4,480 4,892 4,682 5,112Other 0 0 0 0Inspection fees 0 1,200 0 0Snow removal 2,400 2,400 2,400 2,400

3 of 7

Depreciation 19,880 19,880 19,880 19,880

Total expenses 96,356 135,855 97,081 98,883

Net income 5,644 -49,854 11,639 24,126

Add back depreciation 19,880 19,880 19,880 19,880Less mortgage amortization -10,110 -12,853 -11,506 -14,154

Cash flow 15,414 -42,827 20,013 29,852

Property 3

2009 2007 2008 2010Rent income 86,001 102,000 108,720 123,009

Advertising 3,400 0 0 0Cleaning and maintenance 3,565 3,360 3,461 3,672C i i 14 200 0 0 0Commissions 14,200 0 0 0Insurance 10,731 9,200 9,936 11,589Legal and professional fees 3,100 800 800 800Mortgage interest 37,147 39,890 38,494 35,846Repairs 18,800 1,200 1,600 2,300Supplies 378 346 362 395Taxes 16,162 14,800 15,466 16,889Utilities 4,892 4,480 4,682 5,112Other 0 0 0 0Inspection fees 1,200 0 0 0Snow removal 2,400 2,400 2,400 2,400

4 of 7

Depreciation 19,880 19,880 19,880 19,880

Total expenses 135,855 96,356 97,081 98,883

Net income -49,854 5,644 11,639 24,126

Add back depreciation 19,880 19,880 19,880 19,880Less mortgage amortization -12,853 -10,110 -11,506 -14,154

Cash flow -42,827 15,414 20,013 29,852

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Property 4

2007 2008 2010 2009Rent income 102,000 108,720 123,009 86,001

Advertising 0 0 0 3,400Cleaning and maintenance 3,360 3,461 3,672 3,565C i i 0 0 0 14 200Commissions 0 0 0 14,200Insurance 9,200 9,936 11,589 10,731Legal and professional fees 800 800 800 3,100Mortgage interest 39,890 38,494 35,846 37,147Repairs 1,200 1,600 2,300 18,800Supplies 346 362 395 378Taxes 14,800 15,466 16,889 16,162Utilities 4,480 4,682 5,112 4,892Other 0 0 0 0Inspection fees 0 0 0 1,200Snow removal 2,400 2,400 2,400 2,400

5 of 7

Depreciation 19,880 19,880 19,880 19,880

Total expenses 96,356 97,081 98,883 135,855

Net income 5,644 11,639 24,126 -49,854

Add back depreciation 19,880 19,880 19,880 19,880Less mortgage amortization -10,110 -11,506 -14,154 -12,853

Cash flow 15,414 20,013 29,852 -42,827

Combined - all 4

2007 2008 2009 2010Rent income 392,001 405,441 426,450 455,028

Advertising 3,400 3,400 3,400 3,400Cleaning and maintenance 13,645 13,847 14,159 14,581Commissions 14 200 14 200 14 200 14 200Commissions 14,200 14,200 14,200 14,200Insurance 38,331 39,803 42,192 45,498Legal and professional fees 5,500 5,500 5,500 5,500Mortgage interest 156,817 154,025 149,981 144,685Repairs 22,400 23,200 24,300 25,700Supplies 1,416 1,448 1,497 1,563Taxes 60,562 61,894 63,983 66,829Utilities 18,332 18,736 19,368 20,228Other 0 0 0 0Inspection fees 1,200 1,200 1,200 1,200Snow removal 9,600 9,600 9,600 9,600

Depreciation 79 520 79 520 79 520 79 520

6 of 7 Combined all 4 properties

Depreciation 79,520 79,520 79,520 79,520

Total expenses 424,923 426,373 428,900 432,504

Net income -32,922 -20,932 -2,450 22,524

Add back depreciation 79,520 79,520 79,520 79,520Less mortgage amortization -43,183 -45,975 -50,019 -55,315

Cash flow 3,415 12,613 27,051 46,729

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7 of 7 Graph of all 4 properties

Tax comparison worksheetsThis and next 5 slides

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John and Abigail AdamsTax summary worksheetTax year 20YYPrepared Nov 4, 20YY

K-1 and Grantor Trust Summary

20YY Proj 20XXW/P P/A ST Net Effect Income Rental Interest Long-Term Capital 179 PenaltyRef of K-1's (Loss) Income Income Sec.1231 Gain/(Loss) Deduction Charity on early draw

Associates 11A P NY 26,035 24,963 1,072 2,371 Group (Final in 2002) P NY - S S Corp (John) 11J A NY (35,887) (38,065) 2,178 S S Corp (Abigail) 11K A NY (362) (384) 22 Alpha Company A NY (136,192) 25,691 (1,613) (137,317) (22,953) (2,799) US 1 Realty P NY 10 10

Entity

US 1 Realty P NY 10 10

Private Realty, LLC 11B P MD (7,061) (7,061) Semi Private Realty, LLC P MD (47) (47)

Public Investments LLC (John) PA (51,157) (51,181) 24 Public Investments LLC (Abigail) PA (517) (517) -

Comfortable Apartment Group 11E P DC 11,854 11,804 50 Uncomfy You Bet LLC 11L P DC 287,465 (10,090) 720 296,835 BTO Realty 11G P DC 82,846 82,836 10

-

Total Partnership K-1's 176,987 (52,699) 90,658 4,076 295,222 (137,317) (22,953) (2,799) 2,371

Gamma Company 11M A MS 599 999 (158 760) 2 068 756 691 (180)Gamma Company 11M A MS 599,999 (158,760) 2,068 756,691 (180)

Total S-Corp K-1's 599,999 (158,760) - 2,068 756,691 - - (180)

Total Grantor Trust Income 120,000 - 120,000 - - - -

Total K-1 and Grantor Trust Income 896,986 (211,459) 210,658 6,144 1,051,913 (137,317) (22,953) (2,979) 2,371 (22,953) 179 expense line12 of Sch D line 30 of 1040

Ordinary K-1 Income (211,459) 1231 Gain - Prior Disallowed Passive LossesPrior Disall. Pub Tr Ptsp Passive Losses - Disallowed Passive Losses - - Disallowed Pub Tr Ptship Passive Losses - Sch D line 11

Pass Through Income (Loss) (23,754) 1,051,913 Form 1040,

Line 17Form 1040,

Line 14

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Breitling gift

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Clients always k thiask you this 

question. Have an answer ready

Coordinate outgoes with pick up schedules

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Polling question #6

Client interview

A valued meeting or a wasted opportunity?

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Creating a meeting agenda

Wallis Simpson Meeting Agenda With Ed Mendlowitz Date Mar 20, 20XX NOTICE: To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. 1. Compare K-1s to projected schedule for big differences 2. Discuss proposed divorce agreement and effect on her remarrying. Suggest2. Discuss proposed divorce agreement and effect on her remarrying. Suggest

“remarriage” bonus 3. Discuss advisability of Wallis not signing prenuptial agreement

4. Discuss tax status as expatriate when she remarries and difference between

domicile and residence

5. Recommend an asset protection attorney to advise on her IRA rollover account

6. Determine how her estimated tax payments will be allocated, or advisability of not making any payments if she is considering remarriage this year

7. Travel expenses back and forth to England – discuss deductibility if there is a

business purpose. Also boudoir clothing.

Take notes

8. Discuss life insurance on fiancé and how it should be owned

9. Discuss U.S. taxability of living expense allowance given to her by husband’s brother for her to live in either France or the U.S.

10. Give some background on whether she can be considered a charity recipient of

payments from fiance’s family Foundation

11. Discuss deductibility of plastic surgery payments

12. Get Quicken backup 13. Any interest in outsourcing her bill paying and bookkeeping?

14. Any interest in estate planning?

Agenda – another style

Client’s name

Meeting agenda

Date 1……………………………………………………………….. 2……………………………………………………………….. 3……………………………………………………………….. 4………………………………………………………………... 5………………………………………………………………... Other items to be discussed: …………………………………………………………………. …………………………………………………………………. …………………………………………………………………. …………………………………………………………………. ………………………………………………………………….

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Servicing clients better

ADDITIONAL SERVICES CHECK LIST FOR CLIENTS Client______________________________

Date___________________ Prepare by_________________________

The following items that the client might need were identified at our meeting.

Review adequacy of life insurance based on our discussion of family’s financial needs

Client indicated they do not have a will. We can consult on what should be in the will

If client has a concern about their estate plan, we can advise them based on their desires

Client said they do not have a buy-sell agreement with their business partners. We can

consult on the terms that should be in the agreement and ways to value the businessconsult on the terms that should be in the agreement and ways to value the business

Client expressed goals of when they want to retire. We can help them develop a financial

plan showing how they can achieve these goals

Client indicated a concern about cash flow in retirement. We can review their present

assets and accumulation plans to show if they can achieve the targeted cash flow

Client needs a separate tax planning consultation

Client is subject to Alternative Minimum Tax. Client should schedule a pre year-end meeting

Client indicated that they might have a big change in their income this year. Client should

call us when it appears it will occur – before the event takes place

Client should have a pre year-end tax planning meeting and projection

Client’s estimated tax payments do not protect them from penalty. Client needs to inform us

before each payment is due so we could calculate protective estimated payments. Note:

D d t J 15 S t b 15 d J 15 f tDue dates are June 15, September 15 and January 15 of next year.

Client is going through a marital separation. Client should schedule an appointment to

discuss the financial and tax aspects of the separation, and possible divorce Client should consider a retirement plan for their business and should call for a consultation

Client has a household employee and needs further information

Client makes large charitable contributions and needs a consultation on tax advantaged

ways to make them

Other_____________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

We assume no responsibility to perform these services. Consultations are available foradditional fees. Please call our office to schedule a meeting.

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Sample listing of

1. Estate planning 2. Inheritance advice and guidance 3. Succession planning 4. Personal financial planning 5. Investment allocation construction 6. Investment management 7. Investment clubs 8. Elder care assurance services 9. Business performance measurement services 10. QuickBooks ® training and consulting 11. Outsource business and back office services 12. Outsourced CFO services 13. Outsourced corporate tax preparation – income taxes, executive tax preparation, sales

taxes state registrationsSample listing of additional services to tax clients

taxes, state registrations14. Second opinions 15. Business valuations 16. Retirement planning and counseling 17. Pension planning 18. IRA distribution analysis 19. IRS tax audit protection service 20. Conflict resolution 21. Single couples living together planning 22. Second marriage assistance 23. Pre-nuptial agreement analysis 24. Divorce settlement planning 25. Conflict resolution 26. Buying and selling a business assistance 27 Starting a business27. Starting a business28. Buying a franchise 29. Entering a partnership 30. Getting stock in a corporation 31. Receiving stock options 32. Projecting financial aspects of proposed actions 33. Basis calculations for pass through activities 34. Employment contract negotiations 35. Executive compensation review 36. Downsize settlement structuring 37. Corporate management and financial planning training 38. Industry specific tax and business advisory services 39. Structuring partnership and buy sell agreements 40. Recession consulting

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Ask for referrals• Ask every client

• Send extra blank organizer with letterg

• Provide minimum fee schedule

• Separate mailing asking for referral

• Offer a free asset allocation check‐up if a new client is referred

Make 2011 the year for growth• 1/20th method

• 2 things to “sell”g

– Clients with businesses:• Buy sell agreement consultation

• Using a break even analysis to create a strategic plan for a client

– All clients• Review will and estate plan – not a tax thing – a help to client to understand how their affairs will be settled and to help client see pwhat will be accomplished based on what they have presently done

• Asset allocation analysis

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Doing anything discussed in this program

Results in

You providing better service to clientsYou providing better service to clients

You making more money

You having more fun

Some things you can do now• Don’t close your business during tax season – keep selling, 

training and establishing new procedures

• Sign a Drop Dead letters with a colleague

• Be appreciative of your clients

• Provide meaningful and value added deliverables

• Demand higher quality work from your team members

• Understand your value to your clients

• Be excited and have fun!

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Check out my books and read my article

Maximizing Tax Season Efficiency in the January 2011 Journal of Accountancy.Link:  http://www.journalofaccountancy.com/Issues/2011/Jan/20103384.htm

You are welcome to call me with your questions.

EdEd

I can be reached at:WithumSmith+BrownOne Spring Streetp gNew Brunswick, NJ 08901Tel: 732.964.9329   Fax: 732.964.9330 e‐mail: emendlowitz@withum.com