With the busy tax season just around the corner, this presentation will give tax preparers a head start on making it the most profitable one ever. The session will include the latest on: Tax legislation IRS regulations New tax technologies Staffing and practice management strategies

2. PRESENTER: Charles E. “Chuck” McCabe
President and CEO, Peoples Income Tax
Chuck founded Peoples Income Tax in 1987 after 19+ years as an H & R
Block executive and serves as President and CEO. Peoples operates income
tax offices throughout central-Virginia and provides income tax school and tax
practice management systems to independent tax firms nationwide, and offers
online tax courses nationwide. Chuck has conducted tax practice management
seminars for several professional associations including the National Society
of Tax Professionals (NSTP), the National Society of Accountants (NSA), and
the National Association of Tax Professionals (NATP).
He is coauthor of two nationally distributed books on career education for adults
and numerous published articles on adult education and tax practice management.
He is President of Peoples Income Tax School and served on the Dean’s Advisory
Council of the School of Continuing Studies at the University of Richmond. Chuck
has also served on the Executive Committee of the VA Career College Advisory
Board and has taught tax preparation and small business management at several
colleges, including Hofstra and Virginia Commonwealth University.

3. PRESENTER: Catherine A. Mueller, EA, CTP
Director of Peoples Tax and Business Services
Cathy Mueller is an Enrolled Agent, licensed to represent taxpayers before the
IRS. She has also held Series 7 and 66 securities licenses. She is a member
of the National Association of Accountants and a past member of the National
Association of Enrolled Agents and the Virginia Society of Enrolled Agents,
where she served as chair of the VSEA Education Committee. She has
earned designations of Chartered Tax Professional, from the Income Tax
School. She has also completed the advanced education in taxpayer
representation to become a Fellow of the National Tax Practice Institute. Cathy
has done extensive work with small businesses in tax consulting, tax
preparation, accounting and operations management.
Before joining Peoples, she worked for 15 years for U-Tote’'M of Virginia, Inc.,
where she advanced from Accounting Clerk to General Manager and then
President of the 17-store chain, until the company was sold in 1992. Previously
she had held various accounting jobs, and she was also self-employed
providing Accounting, Tax and Business Consulting services for small
businesses.

4. Legislation
Legislation
• Tax Extenders????
– 50+ expired provisions
• State and local sales
tax, tuition deduction,
teacher’s expenses,
research and energy
credits
– Congressional
Discussions
– HR 5771 passed—1
year ext.
– Senate ??
– Veto Threat
– Efile Start Date???

5. IRS Regulations
Section 7216
Taxpayer Consent
to Disclose
Information
Mandatory
Language
 Rev. Proc. 2013-14
General Education
Information

6. IRS Preparer Regulations
• Annual Filing Season Program (AFSP)
• Voluntary—Appear in Public Directory
• Consent to Adhere to Circular 230
• AFTR-Annual Federal Tax Refresher Course
– Record of Completion
– Pass AFTR Comprehensive Test
– 18 Hours CPE Annually
– Filing Season 2015—11 hours

7. Annual Filing Season Program

8. Circular 230 Revisions
Section 10.36 Procedures to Ensure Compliance
Applies to “any member of firm management subject to
Circular 230
Adequate Procedures to Ensure Compliance
Due Diligence: Competency Standard
Duty of firm management to ensure members of the firm
are compliant with personal tax obligations
Covered Opinion Rules
Email disclosure statement no longer necessary
Must have reasonable basis for advice

9. ACA Implications
• Client Education
– Year-end Letter
» Information to bring to appointment
» Explain 1095A, 1095B, 1095C
• Telephone Calls
• Additional Staff Training
• New Forms to Prepare
• Longer Preparation Time
• Increased Fees

10. ACA Resources
• IRS Best Practices Information
– Individual Shared Responsibility Provision
• http://www.irs.gov/pub/irs-utl/Best%20Practices
%205000A.pdf
– Premium Tax Credit
• http://www.irs.gov/pub/irs-utl/Best%20Practices
%2036B.pdf
• Beyond the Basics
• http://www.healthreformbeyondthebasics.org/

11. Electronic Signatures
Forms 8878 and 8879
• Software Provided Acceptable Methods
– Electronic Signature Pad
– Stylus used on Display Screen
– Digitized Image of handwritten signature
– Typed name in electronic record (ex: website
form)
– Digital Signature
– Shared Secret
– Mark captured as graphic

12. Electronic Signatures
Forms 8878 and 8879 (cont.)
• Software Must Record
– Digital image of signed form
– Date and time of signature
– Taxpayer’s computer IP address (Remote transaction
– Taxpayer’s login identification
– Identity Verification—must pass knowledge passed
authentication tests (remote) or confirm government
ID verified
– Method used to sign

13. Electronic Signatures
Forms 8878 and 8879 (cont.)
• Identity Verification Methods
– In Person Transactions
• Must validate taxpayer identification unless a multi-year business
relationship exists
• Examine government issued picture ID
– Record name, SSN, address, DOB
• Must be able to separately identify each taxpayer
– Remote Transactions
• ERO must record name, address, DOB,SSN
• Software must verify identity thru external methods (ex credit inquiries)
• Software may use knowledge based verification methods
• Software must interact with tax records so that signatures may not be
transferred.

14. Systematic Operating Methods

15. Systematic Operating Methods
Policies & Procedures Personnel Policies

16. Tax Preparer Staffing
• Shortage of Tax Preparers
– Preparer Regulations
– Preparers Retiring
• Recruiting Tax Preparers
– Homemakers with young children
– Early retirees
– Other prospects
• Training New Tax Preparers
– Operating a Tax School
– Online Tax Course

17. Tax Preparer Staffing (cont.)
• Continuing Education
– Tax law updates
– Advanced courses
– Small Business courses
• Scheduling Tax Preparers
– Minimize “dead time”
– Monitor productivity
• Employment Agreements
– Non-compete provision
– Non-solicitation provision
– Confidentiality provision

18. Client Retention
Causes of Low Client
Retention
Poor client service
Inadequate communication
Errors
Non-retention of tax preparers
Transient clientele
Retention Rate Goals
EITC Returns
Form 1040
Business Returns
Corrective Measures
Training
Quality Control

19. Quality Control
• Checking Tax
Returns
• IRS Due Diligence
– Training
• Client Service
– Professionalism
– Tax Planning
• Secret Shopper
– Checklist Report
– Pay in Cash

20. Technology
• Computer Equipment
– Used PCs
– Dual monitors
– Scanners
• Computer Systems
– Networks (LAN, WAN)
– “Cloud” systems
– Data Back-up Systems
• Communication
– Internet Service
– VoIP Phones
• Virtual Tax Service
• Secure File Transfer Process

21. Website Marketing
Basic Website Information
 Company Info, Bios
 Company News Releases
 Company Contact Information
 Taxpayer Resources & Links
 Tax Tips
 e-Newsletters (archived)
Interactive Website Features
Interactive Tax Organizer
Online Tax Service
Webinars (play on demand)
Videos
IRS e-services
Taxpayer Files
Taxpayer Forums
Appointment Scheduling

22. Tax Preparation Software
Functionality
All states
Corporate returns
Bank products
Limitations
Stability
Exporting data
Support
Change Vendors?
Training, learning curve
Poor support
Errors, lost data, downtime, e-filing glitches
Cost

23. • IRS Legislation and Regulations
• Systematic Operating Procedures
• Tax Preparer Training
• Client Communication
• Marketing
• Planning
• Staff Meetings
• Review systems, procedures and
execution
• Technology Needs
• Tax Software

24. • Special Offer
• SAVE 65% On Original Prices of Tax Practice
Management Manuals - Use Code ACCTODAY
• SAVE 15% On eLearning courses - Use Code
ACCTODAY2
• Offer Details: Offer ends 12/17/14. Not valid with
other offers or on previous purchases.
• www.TheIncomeTaxSchool.com
• 1.800.984.1040

25. For MMoorree IInnffoorrmmaattiioonn CCoonnttaacctt::
Charles McCabe CMcCabe@theincometaxschool.com
President and CEO, Peoples Income Tax
Catherine Mueller, EA,CTP cmueller@peoplestax.com
Director of Peoples Tax and Business Services