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Now is a great time, because you're already drowning in work because everyone is understaffed, so might as well just give up any hope of sleep or personal life. Lol
Mentor
That’s unfortunate for you.
I have no desire to do more tax work than I already do and would not charge my parents and mother in law 500 for a return which I currently do for free. I have no desire to get involved in other friends and family’s finances. Something gets messed up and you lost and friend or alienated family.
Mentor
I’m helping out family and friends that are already paying to get their taxes done by a tax advisor so they just have me do it instead and sometimes I’m less expensive and sometimes I’m more.
Quick way to get yourself fired. But, hey, at least you'll be making a couple grand.
"... But it's your friends and family" lol
Mentor
Yes, they KNOW and accept the risk and the consequences. We are responsible for our own actions. People are tired of relying on a firm that will fire/lay off employees whenever they need to and are willing to rely on themselves. We have skills that are higher in demand than supply, which is why we are all getting burned out. Getting fired is not always the worst thing and people are recognizing that.
Mentor
No thanks
I saw "5. Get Drake...more" and I was like omg is OP a fan too, Get Drake Album?
Yeah… let me tell my wife, my mother, my former coaches, and my buddies of 15 years that their 10 minute 1040’s will cost them $500.
How about we don’t be scum bags and instead ask them for referrals for real clients.
How else would you interpret your post saying you want to do family and friends returns and won’t charge less than 500?
Hard pass
Thanks for the useless advice
LMAO. This post is awful. If you want to start a side business doing taxes, don't charge your friends and family $500 to do their easy ass taxes. I'm on pace to maybe gross $30k in revenue in 2022 from my side business and guess how much I charge my friends and family? $0. Sure I could charge them something but I don't feel like it. The spiderweb of referrals from some of the friends and family has more than "paid" for their easy 1040s. It takes me about 30 minutes to do easy returns, free sounds better than $500 to my friends of 25 years and my mom/dad, brother and sister.
Mentor
Thank you for your reply with actionable steps and I agree with them. I should have prefaced it with people that have been preparing taxes already and have the skills to complete a tax return and are hesitant taking on clients and discovering they need to learn all those things you mentioned. I’m a big believer in learning by doing. I learned so much more doing taxes on my own for friends and family without “ripping them off” and learning the details/admin side that I did not have to do at an established firm. Most accountants have analysis paralysis so I try not to give too many details but enough to get started and learn as you go. Once again thank you for your input.
OP, I'm with you here! I did the same, depending on how big you want to go, other things to consider are:
- get a CAF number if you don't already have one
- firm name and any restrictions (my state requires a BoA registration if you include the word "CPA" in the name, so do your research)
- business cards
- have a separate bank account and credit card
- logo
- website
- get basic office supplies like envelopes and stamps (responding to IRS letters is a given)
- get insurance
- if you want to go all digital, get: a cloud drive that people can drop documents to, something to receive electronic signatures (like adobe sign), a payment processor, a domain (for website & emails)
I agree on the CAF comment, I recommend getting a POA for a relative or friend and sending it in TO get a CAF number. The first submission has to be paper filed so if you have an important letter, it delays the response by weeks or months, otherwise you can just submit everything online at the IRS website.
Yes, business cards are still in use. I learned that the hard way. Elders and old school people are still around 🤷.
Good addition on the COVID rules, thank you.
Just today i apply for my EFIN 🥲
Why would anyone with a basic 1040 pay $500 for their tax return when they can do it themselves for $50 or less? This is why I never bother to do anyone’s returns. OICs and controversy however? Yeah a few thousand each and I’ll take those on all day.
Why do you assume it’s a basic 1040? People can have rentals, side businesses, etc and would gladly pay $500 for peace of mind and not have to worry whether they’re missing out on deductions or filing the correct schedules.
Subject Expert
Pretty sure you can’t attach your PTIN to multiple firms
Alright, thanks for getting me on the same page. Have a good day.
Yea, except good luck getting your EFIN processed in time for the upcoming tax season lol
Mentor
How is that toe the line? You can file your own extensions right? Or am I missing something?
Where are you gonna find people to charge 500$. Lmaoo this is so hard to do on your own. Most you’ll find are friends/family who have basic return for 100-200$ lol
It’s actually not that hard to find people with real estate or side businesses that would pay that. Tell them the $500 is a business deduction and you’ll be surprised by how positively they’ll react.
If it’s just a w-2 then yeah you’re not gonna charge $500, but I don’t think that’s what OP is looking to do.
Are all your clients just friends and family or have you expanded to others?
Mentor
Friends and family or referrals from friends and family.