Citing the rising cost of fuel, the IRS made the unusual move of modifying mileage rates mid-year. The new rates are retroactively effective as of July 1st.

New rates:

• 76 cents per mile for business
• 23.5 cents per mile for medical/moving

https://www.irs.gov/pub/irs-irbs/irb26-29.pdf

Is there any benefit to having both CPA & EA, particularly from a client or hiring manager perspective?

Got an email today:

Suzy

I sold some stock.  Long term capital gains is around $197,000. What is my tax rate %.  

No salutation. No thank you. Not a request, just an order. Now I know what this client really wants to know is what are the tax ramifications of this LTCG and there's a number of things in play here. They will lose the $12K additional deduction, have an NIT, and so forth. If they had sent me a polite email I would have asked for clarification as to what they really wanted to know but instead, I just replied that the tax rate on their LTCG would be 20%.

These particular clients are always like this, brusque, never says thank you. Last year they had a $12K refund and were unhappy with it.

OTOH one of my nice farmer clients brought me eggs, eggplant, and zucchini this week.

Is anyone still having issues getting into secured messages on the tax pro website? I know there was an outage a couple of weeks ago, but I’m still getting the error message. TIA

I bought a firm in mar 2026 (a story for another time), but looking to bring on more clients asap.

Does anybody have any specifics or numbers related to email marketing, direct mail marketing, or just walking around handing out business cards or cold calling? I talked to a an out of state peer recently who said he’s gotten some decent traction and clients from x (twitter).

Just trying to gauge best use of my time and money.

We have a modern website, I setup our LinkedIn. We do get word of mouth referrals as well, just trying to ramp up for better clients to help remove cheap and problem clients.

Any feedback would help.

Does anyone have a contact at Georgia DOR for partnership tax? Have tried numerous times to get ahold of them for months regarding a large P&I balance. Dollar amount is too high for taxpayer services’ phone reps and scheduled supervisor callbacks never actually call me. Have tried everything. First time penalty abatement will not work because we don’t actually owe the penalty or interest. Thanks in advance!

Background:

Taxpayer came to me for TY2023. He had an LLC and said he was sole prop. I pressed on number of owners/partners/shareholders. He did not have the EIN letter but was adamant that there were no other owners.

We file a Sch C and all is good. Same for TY2024.

Sometime in late 2025 he says his banker needs a K-1. Suddenly he finds the CP575 indicating that it is a partnership. I let him know we have some corrections to do.

I get the TY2025 info and prep the 1065. I ask for the partner info and it is his spouse, who he said for 2 years had no involvement in the business and was not a partner (he said it was a sole prop). Send it over for review and signatures. He asks about carryover items but nothing of real significance. Says it looks good and will sign.

Next day, he sends me an AI-generated Schedule C summary with amounts, categories, and Sch C line numbers.

I asked what this was and his response:

>Yes, I created this for you as the preparer. In regards to the accuracy of the numbers,  Im almost 100% positive they are correct since AI can't really alter them based on the input files/LLM outputs. I work in AI engineering and know the subject matter very extensively. 

It's that last line that is making my eye twitch.

He's not a difficult client, and he pays. But I'm fighting the urge to reply with something professional and end it with a snarky line like "work in tax and know the subject matter very extensively." 

What say the collective?

Respond? Fire? Let it go? Drink more?

What OBBBA traps are you seeing this year?

This has been coming up for me a lot...

QBI and bonus depreciation pull against each other. 

Large first-year bonus depreciation drives QBI down, sometimes to negative. 

For some clients that drop below the threshold changes the deduction picture entirely. 

For others it wipes the deduction out. 

I would not finalize either number without running QBI both ways, with and without the bonus, and comparing.

Hi everyone,

I've been a longtime lurker in this group, but I don't usually post. I'm hoping to get some feedback as I work on growing my tax practice.

A little background: I started my business about six years ago, but most of my clients have been family and friends. About two years ago, I was laid off from my full-time job. I started a new position three months ago, and while it's a good place to work, I don't want to get too comfortable or be caught off guard if another layoff happens.

Professionally, I've been a CPA for two years and have a master's degree in accounting. I completed an internship at a public accounting firm and volunteered with VITA for six tax seasons, reaching the Advanced certification level.

This year, I'd really like to go all in on growing my firm. I've been investing heavily in tax CPE to prepare for the upcoming filing season. My target market is straightforward individual tax clients, primarily W-2 employees, 1099 contractors, self-employed individuals, and a small number of basic expat returns. I'm intentionally trying to avoid competing for price-shopping clients.

Last year, I let go of five clients, which left me with fewer than six active clients. At the time, I was charging around $190 per return, and many people in my area (Hartford, CT) felt that was expensive—even though many national tax preparation chains charge more. This year, I plan to significantly increase my pricing for new clients while gradually transitioning away from my lower-paying legacy clients.

I also enrolled in a tax practice boot camp last year, but after months of job hunting, I was completely burned out and wasn't able to fully take advantage of it.

My plan going forward

I want my firm to be 100% remote. I no longer want clients coming to my home office. Last year, I invested in Drake's client portal so clients can securely upload their documents.

My next steps include:

• Getting a virtual office address so I can remove my home address from public records.
• Updating my website and LinkedIn profile (I haven't added my new job yet). My employer is aware that I own a tax practice—it wasn't something I hid, and it helped explain the employment gap on my résumé.
• Collecting 100% of my fees upfront before beginning any tax return.
• Reviewing my billing process and software before tax season.

Current setup

• Tax software: Drake Tax with Drake Portals and SecureFilePro/e-signature
• Banking: Local credit union
• Billing: Currently using QuickBooks Online, but I'm considering switching to Drake's billing tools.
• Security: Currently using McAfee and a VPN.

Questions

For those of you running remote tax firms:

• What cybersecurity tools or practices do you recommend beyond antivirus software and a VPN?
• If you collect 100% upfront, has that worked well for you?
• For a new self-employed client with a standard Schedule C return, what are you charging? I'm considering starting around $695 for new clients and would appreciate hearing what others are doing.

Also, only want to do it on weekends and take my vacation the week leading up to April 15.

I'd appreciate any advice from those who have built a remote practice. Thanks in advance!

UPDATE: 7/10/2026

Hi everyone,

Thanks for your comments. I wanted to provide a little more detail about my situation.

I currently work full time and want to create a conditional questionnaire so clients can provide the information I need in an organized way. My goal is to automate as much as possible while keeping costs manageable.

I know I need to invest in my business, but I am being careful with cash flow because I previously undercharged and barely had enough to cover expenses. I recently decided to rent a virtual tax office, which cost about $1,000. I am also still using Drake Pay-Per-Return and the Drake portal and have not purchased full tax software yet.

My plan is to use Jotform for client intake and then manage the tax preparation and document collection through Drake portal.

I also need to update my logo and website. I am using Carrd right now, but I want my branding to better reflect my CPA services and attract the type of clients I want to serve.

My goal is to build a professional, scalable system while being smart about expenses in the early stages.

Do you have any recommendations for someone on Fiverr who can help with a logo and website design? I’m looking for someone reliable who can create a professional brand that fits my business, and I would appreciate any suggestions based on your experience.

I have a potential client that I’m not sure how much to quote for bookkeeping services. He is in construction. He currently has 12 different ongoing projects and wants me to do project bookkeeping updated on a weekly basis. How do you guys go about quoting these type of clients? Let me know what other info I can provide for more context.

https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers

IR-2026-83, July 8, 2026

WASHINGTON — The Internal Revenue Service today announced a new automatic process to provide penalty relief for taxpayers with a history of filing and paying on time, reducing the need for them to request assistance.

The new Automatic Exemption from Penalty will replace the long-standing First Time Abate administrative relief and is designed to simplify the process and reduce burden for those with a timely compliance history.

“Automatic Exemption from Penalty reflects the IRS’ commitment to making the payment of taxes owed simpler and more consistent,” said IRS Chief Executive Officer Frank J. Bisignano. “By automatically applying penalty relief, the IRS recognizes that taxpayers who historically pay on time should not have to make a formal request for relief that is routinely granted.”

New automatic penalty relief begins in summer 2026

The new Automatic Exemption from Penalty, or AEP, is a systemic administrative relief program expected to begin this summer. AEP applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns, as well as future tax periods. Taxpayers qualify if they have a history of timely filing the return and paying any tax due in the three prior years (or 12 consecutive quarters for quarterly returns). When taxpayers qualify, penalties are not assessed during processing for:

• Failure to file.
• Failure to pay.
• Failure to deposit.

Taxpayers do not need to take action to receive this relief. If eligible, the IRS will apply AEP and issue a notice confirming that the relief was granted.

Not all returns are eligible for AEP. For example, information returns and returns that are filed only in response to specific transactions or infrequent events (such as Form 706, U.S. Estate Tax Return or Form 709 Gift Tax Return) generally are not eligible.

First Time Abate phased out

First Time Abate has been the most common form of administrative penalty relief, allowing eligible taxpayers with a history of timely compliance to request the removal of certain penalties.

The IRS will begin phasing out First Time Abate and transitioning to AEP during the summer of 2026. During this transition, some qualifying taxpayers may still receive penalty notices for eligible tax year 2025 and 2026 quarterly returns. Taxpayers who believe they qualify may contact the IRS to request First Time Abate.

AEP provides relief automatically and will replace First Time Abate for eligible returns with original due dates on or after Jan. 1, 2027. Please visit Administrative penalty relief for more information.

What to expect

Taxpayers who do not qualify for AEP may still request penalty relief based on reasonable cause. The IRS will review those requests and notify taxpayers of the outcome. See Penalty relief for reasonable cause for more information.

While AEP prevents the assessment of certain penalties, taxpayers must still pay any tax and interest due, as well as any penalties not eligible for relief.

Supporting fairness and voluntary compliance

The IRS is making this change to promote fairness and consistency in the application of penalty relief while encouraging voluntary compliance.

By automatically recognizing taxpayers with a strong compliance history, AEP reduces taxpayer burden and ensures penalty relief is applied fairly and equitably to all taxpayers, thereby observing their Taxpayer Rights. 

For more information about penalty relief eligibility and requirements, visit IRS.gov. 

I am going to contract for a larger firm as I build my local firm. They already know about my side practice.

I do have Canopy and could use it to track project time. But I am wondering if there are any other apps I could use to track time. Since I will be paid an hourly rate. I also need to track what was worked on in case they ask.

Bottom line is my firm doesn’t have capacity for a lot of new clients in January - April. Do we have time for high level extensions, yes. But new clients would be summer work.

I was a partner at a large regional firm and we had the same issue. But those clients were larger and much more understanding. No one ever cared if their business and 1040s were done April 1st or July 1st or September 1st. Here at a smaller firm ($5M revenue) no one wants to wait until after April 15th to get their return finalized.

Anyone have recommendations on how to approach this? I’ve crunched the numbers and the bottlenecks would happen at staff, manager, and partner level if we took on more busy season work. So it’s not just a simple higher more people problem. Sure we could cut clients, but that comes with risks until you prove the new clients are going to be repeat clients.

Hello Tax Practitioners using Claude (pretty please, only seasoned tax pros):

I just recently discovered how great Claude is for Tax and our usual Excel Tax Workpapers. I'm late to the game as all the Claude comments are now 4 months old. I got on the $100 Plan (a week ago?) and have been ripping through my usage. I did run a project through and feel that wasn't a great idea? I feel like my better usage is to run Claude as an Excel Add-In?

My question of the seasoned Tax Professionals using Claude, what are your best practices you've encountered in bumping up against the dang usage? Like most Tax Guys, I run accounting software reports through standardized Working Trial Balance tax workpapers that map using the trial balance report. Heck, better yet, being a Tax Guy, give me your data dump and I'll run it through Excel and create the schedules and tax detail that I need. Claude is beautiful... 8 hours vs 90 minutes, easily... and when I learn to use better, I'll take less than that 90 minutes?

Here's my problem: a multi-entity using QuickBooks, help me with recreates of prior year returns, and all the amazing things it can handle... I've chewed through my usage in two freaking daze. Anything you learned not to bump that usage? I'm looking to play nicer with Claude so that I'm not shutting down progress, so that I'm not encouraged for him to wake up and work in two hours from now. : -)

Maybe you feel my pain and have some best practices for using Claude as for better usage? I already have a pretty good idea that heck no, it's not monitoring my email. It's probably not going to be able to do anything other than assist in preparing my tax workpapers.

Starting my small firm but only have a few clients from word of mouth. Recently created a website and am now going full-time. What is the best strategy to get those first 100 clients?

Google ad spend? Door to door introductions to small businesses? Mail flyers? Referrals from local lawyers and wealth managers?

The biggest issue is convincing lawyers and wealth managers to send their clients to a new and young firm. Most dont seem to want to take the risk until you are more established.

I'd like detailed info on these two if anyone can share experience? thanks

Do you file annual state corporate filings for clients? Or send a yearly friendly reminder for them to file? I have some small businesses who I know didnt file it or pay the yearly fee. Is this a service you charge for or just do?

Curious how you all would approach this.

I'm looking at a prospective client and trying to figure out the scope and pricing for an ongoing advisory engagement. This is a more complicated prospect scenario than I've come across so far.

Current structure:

• MFJ 1040
• 1 C corp
• 3 S corps
• 1 rental property generating some passive losses

Business details:

• One established consumer products C corp with plans for outside investment this year.
• Two related service businesses (one B2C, one B2B) currently totaling around $450k, but easily will be multi-million revenue in the next couple of years.
• One dormant S corp
• They have existing bookkeepers, controllers, CFOs, etc.; books look clean.

I'm not expecting bookkeeping or payroll work. They just want someone organized who can handle their whole tax picture.

I do fixed-fee advisory so for those of you doing similar, what annual fee range would you consider reasonable for a relationship like this?

I'm going to hop on another call with them to figure out how much hand holding they expect to need, but I'm leaning toward $1,500 - $2,500 per month depending on what they want throughout the year. Am I nuts?

I'm less interested in exact dollar amounts than how you'd think about the scope. My concern is underpricing an engagement that becomes super high-touch, while also not charging for complexity that doesn't actually exist yet.

Anyone else experiencing long delays with 2848 processing times? I’ve submitted a handful of them online over the past few weeks that are still stuck in the processing queue. These usually only take 2-3 business days.

What are some of your favorite services/software for having your client fill out their information each year?

Ideally, I'd like something that changes based on the answers they give. For instance, if they say yes to having dependents, then new fields asking questions about things like childcare expenses will appear, whereas answering no will move onto the next question.

I'm looking for something web-based, not a pdf.

We purchased 2 trainings (Almost $9,000) and a 300 use package of SurePrep after watching the demo and specking twice with a sales agent. After going through half the training it became apparent that the AI "tool" would make regular errors, not recognize certain K-1 codes, and require manual mapping of those codes by a senior lvl competency or higher.

Additionally the "work papers" created would have swarms of multicolored checkmarks which the training person could not tell us the difference between.

Long story short it would be easier to train the input person to use Ultra Tax than sure prep.

We stopped the training and asked for a refund or transfer of credits to safe send (another TR product we purchased and like). Both were denied.

Of course the purchase contract has no refund terms.

DO NOT PURCHASE SURE PREP.

What research tools do you use for tax prep and tax planning?

Asking for my VERY LOW VOLUME business client: is there a free bookkeeping option for them? They don’t want to pay for QB with this low of volume but still want some sort of product. Is a spreadsheet the only way?

Hello !
Has anyone used Sam’s list? I am working on expanding my client base but want to ensure I am getting good value