Thanks to you all for responding, at least I now what to ask my accountant without sounding like a "Fool".

Before I respond to this statement, let me say that there are several well qualified and service oriented professionals that inhabit this board, pmarti, irasmilo, to name a few. They take their time to help fellow posters by answering their questions and providing a tax education along the way. Quality Professionals.

That being said, it appears that in general, today's tax professionals are resting on their laurels,(among other things)when it comes to providing service for their clients. They are no longer doing what their clients are truly paying them for, their advice and skill in navigating the tax code for the pupose of legally reducing one's tax burden.

The statement that opened this post came from a post on this very board. Statements like these are common place and are uttered over and over by the tax paying public each and every tax year. Why?

Why should someone paying a fee to a tax professional feel embarrassed to ask a tax question about their return. Isn't that the reason a professional was hired in the first place? The concept baffles me. Specifically, what I do not understand is the fact that the client would have to ask their advisor about the major purchase and the tax ramifications. I admit I'm a bit old fashioned when it comes to helping clients. I like to ask a lot of questions and investigate their financial structure before I sit down and recommend strategies to reduce or even prevent unduly taxes. Please understand that this post is in no way meant to criticize the client, but meant to expose the laziness of the common tax professional.

When a client retains a tax advisor they assume certain information will be conveyed to them. Namely the following:

What is my current tax liability?
What if anything can I do this year to lower my taxes?
What should I be doing to lower my future tax liability?

Keep in mind, in this process each person in this transaction brings to the table a certain responsibility. The client's responsibility is to ask as many questions as he or she likes about taxes, afterall, they are the customer and the person in this relationship paying the fee. The tax professional's duty is to satisfy the client by not only answering pertinent questions, but, also by giving suggestions and conveying knowledge to assist the client in reducing their tax burden. So in other words, to be proactive not reactive in working with the client's personal tax structure. This leads us to consider the next question.

Have we as a group become the allegorical monkies at the computer, eventually printing out a return? I mean anyone can learn to punch in data, its getting the numbers to input that requires skill and knowledge. Obviously, the public's perception of the modern day tax professional is just that, a data entry clerk. If I'm incorrect in my assumption, explain to me the success of the do-it yourself tax software. At some point the general public decided they were not getting value for their hard earned dollars, and starting looking elsewhere for the technical know how to file their returns. It boils down to customer satisfaction or lack of it. In order to create a different perception of tax advisory services in general, I suggest we refer to a baseball analogy.

Remember when you were a kid fielding a ground ball? What did your coach teach you? That's right, charge a slow roller or hopping ground ball, play the ball; don't let the ball play you. Who hasn't been embarrassed by that mysterious bouncing grounder that takes a funny hop over your glove as you wait on your heels. In other words, be proactive not reactive to your clients needs. Find the tax liabilities before they jump up and surprise you and your client.


This tirade has been triggered by the lack of respect for those who hire us, and by those professionals who are complaing about the erosion of their client base. I'm sure this doesn't affect any of us here, but I thought I would adress the subject anyway. Have a great tax season.
James Mulligan

Since we're waxing philosophical for a few moments (the calm before the storm? <grin>) I'll toss my two cents into the ring.

Perhaps it's a reflection of our larger society. We value self-reliance much more highly that we did at the last turn of a century. Just a couple of generations ago, there were tight knit communities all over the country. Neighbor helped neighbor, looking out for each other. Today, we look out for "number one" more than we try to help a neighbor.

The same thing is happening in other professions. Doctors used to be highly respected in their community. They'd see their patients in the store or on the street, and give them medical advice wherever they could. They'd come to your house if you were too sick to get into their office. Now doctors are thought of as overpaid "gatekeepers" to the medical system. They won't see you unless you're in their office or a hospital. They conduct extensive tests, for fear of the lawsuits that would follow if they did too few tests.

Lawyers are no better off. Once a noble profession, they're now the butt of more jokes than any other professionals. People see them as ambulance chasers, ready to sue anyone and everyone for just about anything. On the criminal side, there's so little money, they're forced to press clients into accepting plea bargains, as going to trial is too expensive for all but the well-heeled clients.

The same thing is happening to them as you point out for accountants. How much internet bandwidth is devoted to self-help legal or medical sites? How many people are trying to diagnose their symptoms before going to the doctor, just to make sure the doctor is getting it right? How often are people drafting their own legal documents, thinking they can do as well as any lawyer?

We have become an individualistic society, losing our focus on working toward the common good. When that happens, people think of professionals as adversaries, not advocates. "How can I get this contract reviewed at the least cost" has replaced "Who's a good lawyer I can trust to handle this contract for me."

Just a year ago, I purchased a tax practice from a retiring preparer. As I'm getting calls to set up this year's appointments, I'm shocked at the number of people who've received letters from the IRS or the state and chose to handle it themselves rather than give me a call. And I've repeatedly told my new clients that I'm available year round and never charge them for calling me with questions. Yet they still choose to try to do it themselves.

I've rambled enough.

--Peter

"That being said, it appears that in general, today's tax professionals are resting on their laurels,(among other things)when it comes to providing service for their clients. They are no longer doing what their clients are truly paying them for, their advice and skill in navigating the tax code for the pupose of legally reducing one's tax burden."

I'd like to take that sentiment to a new level: I have found very few tax professionals who could give useful advice. In 1986, I owned a fabulous investment property (vacant land) and sold it because I was told I could no longer deduct the interest and taxes. In 1996 I donated a $12,000 Persian rug (silk, Qum) to my university but could only deduct $5000 because the tax preparer I interrogated before making the gift failed to advise me to get a second appraisal (not from the same guy who sold me the rug). My current accountant is excellent and trustworthy. I just wish these other two had been.

As an outsider, it seems to me that the accounting profession is suffering because the assembly-line tax services that have become very popular in recent years. These services, mostly bank on speed vs accurracy. Preparers are very rarely accountants and rarely trained in accounting. When I worked as a preparer, (after 2 hrs of "training") I was amazed at the large numbers of people that were more concerned with "How fast I can get my money" rather than having an accurate return with a view toward reducing next year's tax liablity. I offered some advice when it was obvious, but it they were rarely interested. I even occasionally tried to talk them out of the outrageously priced "Fast refund" route, but was rarely successful.

It seems that today's most precious commodity for most people is time. These "speed tax" services take this to the extreme and it seems to me, are making a killing doing it. The service provided by accountants suffers because of pressure to compete with the "speed tax" services. There is no longer time to reflect on one particular customer's return for too long. The pressure is also put on by accounting firm customers that see the endless "speed tax" ads promising returns prepared while you wait and refunds within 2 days and compare it to an accountant's much slower (and hopefully accurate) process.

It also can be viewed from the point of view of diminishing returns. Everyone has a point where *they perceive* that a more accurate return is not worth their time. IOW, the time saved is worth the loss of potential extra tax savings and the risk of an IRS audit. That feeling is transmitted to their accountants. I know I reach that point with my mother's taxes when I wonder if it is worth asking her if she can find this piece of paper or another in the huge pile of papers scattered in her office area. I hope this makes sense to the tax gods out there...