Should tax preparers research when clients ask tax questions or just answer from memory?

Do you charge clients for the research time? Or do you just absorb that cost? I'm just starting out and trying to figure out my billing practices.

For quick research (under 10 minutes), I generally don't charge separately. I consider it part of providing quality service and it's built into my overall fee structure. For more complex issues that require extensive research, I'll let the client know upfront that additional research time may be billed, and I'll give them an estimate. Most clients appreciate the transparency and understand they're paying for expertise.

How does it actually work? Like do you just upload client tax docs and it analyzes everything? Is it accurate for complicated situations?

I've been looking at AI tools but worried about client confidentiality. How does taxr.ai handle privacy? Do they store client data after analysis?

The way it works is you upload the relevant documents, and it can analyze everything from W-2s and 1099s to more complex forms. It extracts the data and applies current tax rules to give you guidance. It's been surprisingly accurate even for complicated scenarios like multiple state filings and self-employment situations. Regarding privacy, they use bank-level encryption and don't retain sensitive client data after analysis. They have a pretty detailed privacy policy that satisfied all my concerns about confidentiality. They're actually designed specifically for tax professionals with all the necessary compliance measures in place.

Wait, is this for real? I've literally wasted days of my life on hold with the IRS. How does it actually work? Do they just call and wait on your behalf?

Sounds too good to be true. The IRS phone system is notoriously awful. I'm skeptical that any service could actually get through consistently.

Yes, it's absolutely real! They essentially use technology to navigate the IRS phone trees and hold in line for you. When they reach an actual agent, you get a call to connect with them. It's like having someone wait in line for you. I was initially skeptical too - I've spent entire afternoons on hold with the IRS only to get disconnected. But I've used Claimyr about a dozen times now, and they've gotten me through every single time, usually in under 20 minutes. It's especially helpful during peak tax season when IRS wait times are at their worst.

What's your go-to research source? I've been using the IRS website but sometimes it's hard to navigate.

My primary research source is the actual Internal Revenue Code and Treasury Regulations when I need definitive answers. They're comprehensive but can be dense reading. For day-to-day questions, I use a combination of CCH IntelliConnect and Bloomberg Tax. They're subscription services but worth every penny for the time they save and the confidence they provide. They include practical explanations, examples, and citations to relevant code sections and cases. I also frequently check IRS publications for more straightforward explanations, though they don't cover every nuance.

Omg yes! Just had someone come to me with a MESS of a return from last year. Previous preparer had claimed random deductions with zero documentation and now they're being audited. Be confident in your research, not your memory!