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- Written by: Joshua Fluegel
Website Builder Roundtable
CPA’s website is the proverbial greeting handshake for many potential clients. It forms a person’s initial opinion of the firm. This importance has led many to speculate on the best way to construct and maintain a website. CPA Magazine approached thought leaders on the subject to get their views on mistakes CPAs often make when creating what website and what feature every CPA website should have.
DAVE RUTAN CEO of CPA Site Solutions
What is a mistake you see tax professionals often make when creating and running their websites?
Enticed by the low-cost and easy DIY claims, many tax professionals attempt to build their own website. They soon realize that proper website creation involves much more than inserting contact information and a few pictures. Professionally designed websites should be more than aesthetically pleasing. A well-designed website should be created to convert visitors into clients by incorporating search engine optimization elements, properly placed calls-to-action and engaging, educational content. It’s also critical that tax professionals keep their website updated. Aside from turning off prospective and existing clients, websites that lack fresh content and user-friendly features are penalized by search engines, resulting in poor rankings and ultimately a decline in business.
What is a feature you think every tax professional’s website should have?
There are a number of must-have website features that will benefit accountants. The first is engaging, educational content. Not only does the right content inform visitors about the services you offer, but it also helps increase search engine results rankings. And, since the vast majority of Internet searchers don’t go past page one of results, your firm’s ranking is a key factor prospective clients’ ability to find you. Your website should also showcase positive reviews and testimonials to help prospective clients know what it’s like to work with you and your firm. It’s also important to have a secure portal that allows tax professionals to conveniently exchange files with clients via their website. Finally, an updated “Contact Us” page with request forms allows you to gather information directly from your website 24/7.
ROBERT TENNER CEO of Accounting and Financial Site Builder from Tenenz
What is a mistake you see tax professionals often make when creating and running their websites?
The heart of any website is the content. In order for a website to be successful the content must be relevant, timely, and useful to a firm’s desired audience (whether it’s existing clients or potential leads). Professionals that want to properly leverage their website must put some time into thinking through their content: how they describe their practice and services they provide, what resources they want to provide to clients (such as articles or calculators), and critically, how often they are willing to update and refresh content. This is often more difficult than people guess, but having direct access to modify and update their website’s content is key to help eliminate obstacles on maintaining the most important aspect of their website. Going through a third-party every time you wish to change something is not only a hassle, but eventually is exhausting and results in stale and out-of-date content. We also see too many firms paying fees for services they don’t need or use. We believe a better solution is providing a web platform that allows the firm to just add and pay for the services and features that work for them, not the website provider.
What is a feature you think every tax professional’s website should have?
It seems not a month goes by without another big new story relating to a new online security breach. Any tax professional starting to embrace digital tools must realize that email is not a secure channel to send private information. Professionals must offer a secure file-sharing portal for their clients to keep their information safe. Emails travel across many different servers, some of which may or may not encrypt the message as it goes. Just like a postcard, that means prying eyes could see the information as it travels. A secure file transfer portal lets clients and tax professionals securely upload, store, and download sensitive documents at any time.
DR. CHANDRA BHANSALI Co-founder and CEO of AccountantsWorld
What is a mistake you see tax professionals often make when creating and running their websites?
When it comes to running their websites, many accountants fail to take full advantage of the time a visitor spends on the site. It is like leaving money on the table. A good website must provide quick answers to the questions visitors may have as well as make visitors aware of additional opportunities they could be interested in, including tax saving, tax planning and other add-on services. Especially during tax season, the home page itself should become the landing page to capture leads as well. In order to ensure leads are captured accurately, be sure your site encourages visitors to fill in basic contact details that are submitted and captured by the firm.
What is a feature you think every tax professional's website should have?
Every tax professional’s website should be shoppable. In today’s digital-first world, prospective clients have access to the information and tools to do their own research and to shortlist their choices. If your website content is compelling enough and fits their needs and wants, they are ready with their criteria to buy. “Where to buy” needs to be more obvious and prominent on your site. Most websites offer free consultation, contact us forms and other similar features. But surprisingly, more often than not, the shoppable feature, or the “buy button,” is missing. Not having a buy button means not giving immediate buying opportunity to the interested prospect, which can result in a prolonged sales cycle and even potential loss of interest from the prospect. A 10%, limited time, web-only discount along with a buy button can add to your sales.
HUGH DUFFY Chief Marketing Officer of Build Your Firm
What is a mistake you see tax professionals often make when creating and running their websites?
One of the mistakes we often see is most tax accountants find themselves struggling with the dilemma of choice. They are either very interested in having a website with a lot of tools or they are looking for a website that will assist with their marketing efforts and generate new leads. Accountants that focus on tools are hyper-focused on getting a website that comes with all the bells and whistles like hundreds of pre-written articles, email newsletter tool, social media posting tool, secure file sharing tool, payment processing, online portal connectivity, calculators and access to tools that have nothing to do with accounting and tax. Accountants that are more concerned about marketing tend to be focused on a search engine optimization, posting online reviews and reputation management, having professionally-written content, social media marketing and effectively communicating their firm's branding. The mistake is failing to realize in order to have a truly effective accounting website, tax accountants should be investing in a website provider that offers answers to both these needs.
What is a feature you think every tax professional's website should have?
There is no need to settle in today's online world. We truly believe that accountants shouldn't have to trade-off tools versus marketing in their website presentation. Instead, we recommend choosing a website provider that understands the needs of accounting firms and understands the difference between an enrolled agent versus CPA, QuickBooks versus Xero, and provides tools that enable accountants to operate more efficiently, and within compliance. Not to mention, a provider that doesn't put your firm into a box and instead gets to know your firm and can provide a website that clearly defines what you offer and what makes you unique. With the evolution of websites designed specifically for accountants, you should expect the core tools to be well designed for peak performance, a visual presentation that effectively brands your firm and paints the picture you want to embed in a prospect's mind, and motivates the prospect to call your office and meet with you.
LEE REAMS II CEO of ClientWhys
What is a mistake you see tax professionals often make when creating and running their websites?
It takes much more than a website to stand out online. If no one can find your website, what is the point? To showcase your experience, tax pros need to be active on all of the major social media profiles, actively share knowledge on their blog. We often see what we call a “dinosaur” website, where the professional tried to save money and built a site that was never updated after it went live. That strategy just doesn’t work. You need to be present where your clients are spending their time online. Be active on social media and engage with your audience through your email newsletter. A lot of what is said about you occurs online. Let’s make sure it is positive.
What is a feature you think every tax professional's website should have?
Social proof and client recommendations should be front and center on a tax professional's website. Times have changed. Consumers no longer rely on the recommendation of one. They do their research and make better choices based on the opinions of many. So building up a stockpile of reviews and testimonials makes it easier to convert web leads and those referred by others. You also have already planted the seed of trust by what others have said about you. They are more likely to follow your advice, refer others, and maybe, just maybe, pay more for your services.
JEFF DRAKE President of CPASites, LLC
What is a mistake you see tax professionals often make when creating and running their websites?
The biggest mistake we see accounting firms make is creating an interactive website and then not being active with it. When we first began building tax and accounting websites, there were very few options for creating an interactive site. But over the years, as blogs and Twitter apps became prevalent, more professionals jumped on the bandwagon and began viewing their website as an active marketing tool they can use to stay in touch with their clients. The problem however, is after the initial excitement of their new website “toy” has worn off and the drudgery of everyday work resumes, their blog entries and tweets begin to taper off. We repeatedly warn our clients that a blog or Twitter app that hasn’t been updated in weeks or months is far worse in appearance than not having one at all. Our experience has been that unless there is someone in the firm that has maintained an active blog and/or is passionate about online communication, it is best to simply maintain content for their clients that is updated external sources.
What is a feature you think every tax professional's website should have?
With the increased focus on security and confidentiality, we think it is now imperative that all tax professionals maintain a secure client portal that can be used to store and transfer files with their clients. Many tax professionals are still using standard email for exchanging tax information and the risks are enormous. They seem to assume that it’s no more risky than mailing a return to a client but they fail to realize that, unlike information sent via email, packages sent through the U.S. Postal Service cannot be intercepted and copied by anyone around the world. Since tampering with a sealed and mailed document is easily evident, often traceable and subject to severe domestic criminal penalties, the mail services are considered an acceptable level of risk. Tampering with emailed documents however, can leave behind no evidence, be completely untraceable and if done outside the country, be completely exempt from domestic law. Email is a highly unacceptable risk for a tax professional.
SEBASTIAN LEE President/Owner of Service2Client
What is a mistake you see tax professionals often make when creating and running their websites?
Not taking the time to create a great bio with high quality images. On a larger topic, learning and being willing to spend money on marketing.
What is a feature you think every tax professional's website should have?
It sounds simple, but a beautiful photo of personnel or landscape and a Free Consultation offer. Further on this topic is a video from one of the partners.
JORDAN C. KLEINSMITH Sr. Product Manager, Tax & Innovation at Thomson Reuters
What is a mistake you see tax professionals often make when creating and running their websites?
You cannot afford to write-off the importance of aesthetic appeal. Many of you probably think along the lines of what you would like to see on a tax professional’s website and overcomplicate your sites for the average non-tax-minded visitors, leading to a cluttered appearance and confusing navigation structure. Less is truly more in many cases. You are likely correct in saying you gain most of your new business by word of mouth, but you may be failing to recognize that the first thing a referred prospect is going to do is search for your website online – very, very few prospective customers will make a cold call to your office or email you before taking this step. Once they arrive at your site, you have mere seconds to make a good impression and influence them to reach out and make contact. If your site looks “cheap” or unprofessional at a glance – or is not formatted to display correctly on a mobile device, which is what the majority of new prospects will use to look you up – you will likely lose the opportunity to gain a new client. Aesthetic appeal is one of the only tools at your disposal to make such a positive impression in such a small window of time.
What is a feature you think every tax professional's website should have?
An absolutely critical feature to any tax professional’s website – beyond a clear brand promise of the quality service you pledge to all clients – is a method of contact to your office that does not involve making a phone call. This could include something as sophisticated as a live chat capability to an on-call member of your office, a submission form requesting a prospect’s contact information and service(s) desired, or as simple as a link to an email address at your firm. You may not realize it, but there’s a major paradigm shift underway in how prospects select service professionals based on communication preferences: whereas the old litmus test was “I’m not doing business with any company I can’t call for service at a moment’s notice”, the new requirement is “I’m not doing business with any company I have to call for service at a moment’s notice.” This extends to self-service capabilities like secure access to tax returns and other documents online, but begins with prospects shopping for a new tax preparer.
NAKE SAKANDER Product Manager at Wolters Kluwer Tax & Accounting
What is a mistake you see tax professionals often make when creating and running their websites?
A mistake I see — not just from tax professionals but across the board — is building a website without a clear goal of what you want to accomplish. Having a website just to have one isn’t good enough anymore. You must have a definitive goal or vision of what you want to accomplish, whether it be to educate, sell a product or service, or any other goal.
What is a feature you think every tax professional's website should have?
I believe every tax professional’s website should be built on technology (responsive design) that optimizes the user experience based on the device type they are using to view the site. If a site doesn’t work on the user’s mobile phone, chances are that the user will not engage any further. So much of our technology consumption and engagement is on “mobile” devices, phones and tablets, that not having that experience optimized is a nonstarter!
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- Written by: Joshua Fluegel
Cloud Accounting Roundtable
Cloud accounting software has freed CPAs from many of the constrictions of 20 years ago. A CPA can now work from multiple locations and get more in-depth input from clients in a way that is convenient for them. This is all the more reason why such software should be selected carefully. CPA Magazine invited industry thought leaders to a roundtable discussion to get their views on recent developments in cloud accounting software, what mistakes and/or opportunities CPAs should be aware and tax professionals should look out for when selecting cloud accounting software?
KURT KUNSELMAN CEO of AccountingSuite
What is a recent development and/or useful feature in cloud accounting software?
Adding collaboration tools such as chat with your accountant or chatting with other users within the cloud service with the ability to create tasks. Cloud accounting is about collaboration. The more tools that are added, such as chat with others in your account, the more efficient we all become and it redefines the purpose of cloud accounting “software” - which is really a service. Chat capabilities that also allow for creating tasks will become industry standard and will also redefine daily workflows within tax, client accounting services and overall company operations. This not only creates the efficiencies with accountants and other users, but, keep in mind, it includes third-party users that are part of your account such as contractors and third-party fulfillment partners.
What is something tax professionals should look out for when selecting cloud accounting software?
The ability to export a clean and useful file that groups all information from a cash basis chart of accounts into the correct categories for the schedule that is needed for Sole Prop, C Corp, S Corp, B Corp, and Non Profits. In addition, the tax professional should look for a solution that has built in controls for best practices and allows their clients to scale their business. The old saying “garbage in/garbage out” applies to tax professionals as well. They need to be assured that the cloud accounting software is just not letting clients create bad data. As our technology solutions become more sophisticated, we can automate best processes and prevent users from entering data where it’s not supposed to be in the first place. We are not there yet, but soon in the future we should be as we move to hands-free accounting.
DR. CHANDRA BHANSALI Co-founder and CEO of AccountantsWorld
What is a recent development and/or useful feature in cloud accounting software?
Automation is key in cloud-based accounting software. The ability to automatically update accounting data with payments made and received is an incredibly useful feature for both accountants and their clients alike. Automation reduces the effort and time it takes to follow-up with clients to receive and aggregate information. It enhances accuracy of data by using the ability to identify similar transactions and to route them to the right account automatically. Therefore, it cuts down a significant amount of time and cost in preparing the books. Such features enable accountants to now serve more clients within their existing resources. Obviously, it increases revenue and profitability.
What is something tax professionals should look out for when selecting cloud accounting software?
Most accountants agree the more their clients are involved in data entry, the more mistakes they’ll be left cleaning up. Cloud-based accounting software that allows accountants to provide limited access to their clients when necessary is the ideal choice. This collaborative cloud-computing model will help reduce the need to comb through multiple platforms to aggregate data, increasing a firm’s efficiency, productivity and profitability.
CECE MORKEN Executive Vice President and General Manager, ProConnect Group at Intuit
What is a recent development and/or useful feature in cloud accounting software?
There are two very useful features that will save accountants a significant amount of time and reduce the number of tools they need to use. The first is the integration with tax. During tax season, accounting professionals spend about five hours per client cleaning up their books to prepare them for a tax return. The time-saving integration simplifies workflow by creating a seamless, end-to-end experience that translates a client’s books into a tax return. The second useful feature is practice management. A cloud-based solution designed to be the one place for accountants to effortlessly and seamlessly manage workflow, client communications and daily operations. The feature will leverage data and user behavior patterns to automate overhead and identify work that needs to get done, eliminating the need for accountants to discover and enter tasks manually.
What is something tax professionals should look out for when selecting cloud accounting software?
Tax professionals, like all accounting professionals, should do their homework before choosing a cloud accounting software. Firms should choose a solution that makes working and collaborating easier for their clients and their staff. An integrated solution across bookkeeping, accounting, and tax reduces data entry errors, saves time across the workflow, and makes communication easier and more secure. By connecting your client files directly to your cloud accounting solution, you also can view your client files in real-time, which saves time during year-end clean up and gives you the ability to proactively make a difference with your clients.
TERESA MACKINTOSH CEO of Trintech
What is a recent development and/or useful feature in cloud accounting software?
One of the latest advancements in cloud accounting software space is Risk Intelligent Robotic Process Automation. Risk Intelligent Robotic Process Automation allows your organization to live and thrive in a risk-based world. One where the robots know the tolerances that are allowed according to your organization’s policies and automatically runs activities, only notifying a person when there is an issue to be resolved. With Risk Intelligent RPA, an effective controls framework underpins the whole process and, by unifying all key control components together, it creates a detailed audit trail for compliance initiatives. To drive further efficiencies, Risk Intelligent RPA can be utilized to lower costs and reduce errors and enables your highly qualified employees to focus their time on developing valuable strategic insights for your business. This technology not only provides additional value to the business by increasing efficiency and effectiveness, but it also encourages the type of high-value work most likely to attract and retain high-quality people.
What is something tax professionals should look out for when selecting cloud accounting software?
As the office of finance continues to be faced with increasing regulation, ensuring the integrity of your period-end numbers is more of a challenge than ever before. When selecting a cloud-based accounting software, we recommend investing in a solution with an effective compliance framework that supports all of your Record to Report processes from the time a transaction occurs all the way through regulatory and financial reporting. Now, with compliance as a foundational principal of the entire financial close cycle, you can be confident that your reports are both accurate and compliant with all applicable regulations.
SATYAN PENMETSA Chief Technology Officer of Wolters Kluwer Tax & Accounting
What is a recent development and/or useful feature in cloud accounting software?
Cloud accounting software offers a number of useful features that benefit users with greater mobility, flexibility and convenience. Anywhere, anytime access to information so that firms can increase client response times, and having a central database to make it faster and easier to access files and fulfill client requests – are advantages that an on-premise solution cannot provide. Cloud-based solutions typically lend themselves to service offerings that customers can subscribe to as their business or clients demand. And today, clients are demanding more responsive service, including the ability to access self-serve features whenever they want. With cloud accounting software, clients with busy schedules have the advantage of not needing to meet in person to handle paperwork or sign forms. Accounting staff can work from home or create non-traditional work hours since employees can stay connected to the office at all times of day and from all locations where they have internet access.
What is something tax professionals should look out for when selecting cloud accounting software?
When selecting cloud accounting software, professionals should make sure to find the right partner to work with to make a successful move to the cloud. The partner should be able to support them should they choose to take pieces of their workflow and move it to the cloud – enabling them to make the process changes needed for cloud adoption in phases – or migrate completely. Additionally, it’s important for professionals to outline their current and future goals for moving to the cloud. They should consider a cloud accounting software provider that will not only serve their needs, but partner with them along the way to ensure their goals are met from initial implementation to future growth.
KERI GOHMAN President of Xero Americas
What is a recent development and/or useful feature in cloud accounting software?
Machine learning and automation are key developments in cloud technology that allow accountants to focus more on the advisory services instead of data entry. The innovative machine learning automation systems will transform the accounting practices of small businesses and their accounting partners, saving valuable time and money. Accounting software is getting smarter, automatically performing analysis which previously required human intervention. Consider tasks like bank reconciliation: systems can learn how to completely automate this job, freeing up your time to provide a deeper level of service to help your small business customers thrive. As machine learning and AI have an increasing role in the profession, it will make accountants more proficient, more productive, capable of taking on and handling more clients, while also delivering more value through insight, rather than through long hours of tallying up figures. Machine learning cannot match human insights; rather, it complements brain power to benefit all involved.
What is something tax professionals should look out for when selecting cloud accounting software?
With the evolution of cloud technology, the way people prepare for tax season has changed, making the process easier and more streamlined. Clients and accountants alike have increasing control of their data and can use it to make better business decisions and meet tax obligations with ease. When a tax professional is selecting cloud accounting software, aim for mobility, affordability, simplicity of use and connectivity to other applications. Cloud technology can automate things that a business would typically have to do manually, such as reconcile their books, manage cash flow and integrate with other services and applications - make sure the software you select does this seamlessly.
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- Written by: T. Steel Rose, CPA
President Trump announced what has been called “the biggest tax cut” in U.S. history on April 26. The one-page plan provides 12 bullet points to simplify the tax code and reduce taxes. Six points in the one-pager worth remembering are:
1) Reducing the number of individual tax rates to three: 10%, 25% and 35% from seven: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
2) Doubling the standard individual tax deduction to $12,700 for single filers and $25,400 for joint filers.
3) Repealing the alternative minimum tax.
4) Eliminating the estate tax.
5) Repealing the 3.8% Obamacare tax on net investment income on incomes generally above $200,000 and return the top tax rate on capital gains and dividends to 20%.
6) Reducing the tax rate to 15% from 35% for businesses, presumably for corporations S corporations and partnerships.
The plan will depend on stakeholders and Congress developing details that will provide “massive tax relief, create jobs, and make America grow again,” according to the one-pager.
The remaining six points are less specific and range from, “providing tax relief to help families with child and dependent care expenses,” to, “eliminating most of the tax breaks that mainly benefit high-income individuals.” According to a statement by Gary Cohn, President Trump’s chief economic advisor and director of the National Economic Council, “home ownership, charitable giving, and retirement savings will be protected – but other tax benefits will be eliminated.”
The “Business Reform” section includes points imposing a one-time repatriation tax that would permit U.S. companies to bring back trillions of dollars held overseas at a previously proposed 10% rate. Two points require the most clarification and relate to eliminating tax breaks for special interests and a territorial tax system to level the playing field for American companies.
The details may consume the rest of 2017 but it appears business tax cuts are coming and those cuts will not be limited to regular corporations. Therefore, relinquishing subchapter S elections or converting partnerships or limited liability companies to regular corporations is premature especially since the plan is not expected to be retroactive for 2017.
Over the last 40 years the words, “tax simplification,” has meant employment insurance for CPAs. Although the rhetoric from Gary Cohn does represent a broadside to impact the simplified tax prep industry, Cohn noted in his statement, “In 1935, we had a one-page tax form consisting of 34 lines and two pages of instructions. Today, the basic 1040 form has 79 lines and 211 pages of instructions. Instead of a single tax form, the IRS now has 199 tax forms on the individual side of the tax code alone. Taxpayers spend nearly 7 billion hours complying with the tax code each year, and nearly 90% of taxpayers need help filing their taxes.”
Cohn’s statement continues, “We are going to double the standard deduction so that a married couple won’t pay any taxes on the first $24,000 of income they earn. So in essence, we are creating a 0% tax rate for the first $24,000 that a couple earns.
“The larger standard deduction also leads to simplification because far fewer taxpayers will need to itemize, which means their tax form can go back to that one simple page.”
The one-pager began with a section titled “Goals For Tax Reform.” Bullet points describing the goals included: Simplify our burdensome tax code; Provide tax relief for American families—especially middle –income families; and Lower the business tax rate from one of the highest in the world to one of the lowest.
Reiterating the main goal, Cohn stated, “Job creation and economic growth is the top priority for this Administration, and nothing drives economic growth like capital investment.”
The one-pager concludes with a section titled “Process,” describing the plan wherein the Trump Administration will continue working with the House and Senate to develop details of the plan than can pass both chambers.
Let the Congressional lawmaking games begin.- Details
- Written by: Kathleen M. Lach
The IRS is rolling out a new test program for streamlined installment agreements which runs through September of 2017. It will then make a determination whether it will become permanent.
A “streamlined” installment agreement program was originally put in place by the IRS for taxpayers with outstanding tax liabilities of less than $25,000. Under this program, a taxpayer would qualify for a payment plan to address unpaid taxes without providing detailed financial information to the IRS, and without being subject to its determination on how much disposable income he had each month to pay toward the debt. Taxpayers were automatically granted the agreement to pay the tax with payment terms extending a maximum of 60 months. In 2012, that program was expanded to include taxpayers with liabilities of less than $50,000, and the terms were extended to a maximum payment period extending up to 72 months, again without having to provide detailed financial information, and without being subject to the IRS’ determination on how much a taxpayer could afford to pay each month based on his financials.
Whether due to diminished resources at the agency, or the need to improve collection efforts, the terms of the streamlined program are again expanding. Under the new parameters, individual taxpayers with an assessed balance of tax, penalty and interest between $50,000 and $100,000 may take advantage of accelerated processing of their installment agreement request. The taxpayer’s proposed monthly payment must be greater than his total assessed balance divided by 84, or the amount necessary to fully satisfy the liability by the Collection Statute Expiration Date. Both the threshold for qualification under this program, and the time to pay, have been significantly expanded.
During this test period, this expanded criteria for streamlined processing will only be available for installment agreement requests submitted to Small Business/Self Employed (SB/SE) Campus Collection Operations (including the Automated Collection System), and will not be available for requests submitted to Wage & Income Accounts Management, SB/SE Field Collection or through the Online Payment Agreement application.
The following chart summarizes the current program, and changes within the test program for individual taxpayers who have filed all required returns and have an assessed balance of tax, penalties and interest of $50,000 or less. The test criteria also apply to defunct businesses with tax debts up to $25,000, and defunct sole-proprietorships with tax debts up to $50,000. For in-business taxpayers, test criteria apply to income tax debts only, up to $25,000.
| CURRENT Streamlined CRITERIA | TEST CRITERIA |
| Payment Terms Up to 72 months – or – the number of months necessary to satisfy the liability in full by the Collection Statute Expiration Date, whichever is less |
Payment Terms None. This criteria is unchanged. |
| Collection Information Statement Verification of ability to pay required in event of an earlier default for assessed balances of $25,001 to $50,000. |
Collection Information Statement Not required. |
| Payment Method Direct debit payments or payroll. Deduction required for assessed balances of $25,001 to $50,000. |
Payment Method Direct debit payments or payroll. Deduction is preferred, but not required. |
| Notice of Federal Tax Lien Determination not required for assessed balances up to $25,000. Determination is not required for assessed balances of $25,001 - $50,000 with mandatory use of direct debit or payroll deduction agreement. Note: If taxpayer does not agree to direct debit or payroll deduction, then they do not qualify for Streamlined IA over $25,000. |
Notice of Federal Tax Lien No change in criteria for assessed balances up to $25,000. Determination is not required for assessed balances of $25,001 - $50,000 with the use of direct debit or payroll deduction agreement. Note: If taxpayer does not agree to direct debit or payroll deduction, then they do qualify for Streamlined IA over $25,000, but a Notice of Federal Tax Lien determination will be made. |
The chart below shows the changes for individual taxpayers who have assessed balances between $50,001 and $100,000. The test criteria also apply to all out of business sole-proprietorship tax debts between $50,001 and $100,000.
| CURRENT CRITERIA | TEST CRITERIA CHANGES |
| None - Streamlined processing criteria currently does not apply to assessed balances of tax between $50,001 and $100,000. |
Payment Terms Collection Information Statement Payment Method Notice of Federal Tax Lien |
A taxpayer may request a payment arrangement by filing Form 9465, Installment Agreement Request, with the IRS. Streamlined arrangements may also be made by visiting a walk-in center, or by phone. The fees for entering into such an agreement have increased for 2017:
| Type of Installment Agreement | New Fee | Prior Fee |
| Regular installment agreement | $225 | $120 |
| Regular direct debit installment agreement | $107 | $52 |
| Online payment agreement | $149 | N/A |
| Direct debit online payment agreement | $31 | N/A |
| Restructured or reinstated installment agreement | $89 | $50 |
| Low-income rate | $43 | N/A |
A taxpayer may qualify for a reduced fee of $50 if his income is below a certain level. A determination on the reduced fee is made using Form 13844, Application for Reduced User Fee for Installment Agreements.
It is also important to remind your clients that interest and late payment penalties on any tax not paid by its due date continue to accrue even if the request to pay in installments is granted. Further, if payments are late, or a new liability is assessed on a later return, the agreement will be in default, and the IRS may take enforcement actions, such as filing a Notice of Federal Tax Lien or an IRS levy action, to collect the entire amount owed.
Charts taken from www.irs.gov
Kathleen M. Lach is a Partner in the Tax and Litigation Departments of Arnstein & Lehr LLP. She represents clients before a variety of different tax authorities, including the Internal Revenue Service, the Illinois Department of Revenue, and the Illinois Department of Employment Security.
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- Written by: CPA Magazine
Why are you renewing your Microsoft Office software when there are three valid competitors out there that are free? Apple’s word processor (Pages), spreadsheet program (Numbers), and presentation software (Keynote) are now free to download for both macOS and iOS. Although Apple’s productivity apps are not exactly awesome, its hard to argue with free software.
Google Docs is a free web-based word processor, spreadsheet, and presentation application. The online app allows users to easily share documents and collaboratively work on them in real-time without asking you to pay for it. There is also the open-source LibreOffice suite also serves as a free Microsoft Office replacement.
Next up, free tax software, at least for consumers. Not just the Free File Alliance software for consumers making under $64,000 but also Credit Karma and FreeTaxUSA who offer an ever broader array of forms to the end user at no charge, with no income limitations.
While professional tax prep may not be free yet, it seems like an odd decision in the year 2017 to not be using software that is.