[Wanttrepreneur]

Hey Guys!

This question is not related to the exams but I want to start my own business of preparing tax returns for individuals and corporations, both federal and state. My question is, Is there a place where I can download tax returns for free or cheap in order to submit them electronically? I know there are programs like Drake and Sage, but those are not cheap. Since it is a start up, I want to be as cost efficient as possible. Any recommendations will help. Thanks!

[Want2BeCPAsoBad]

Honestly, the best way to start is by using software for tax preparation. You can request free forms at IRS website but you can't electronically file them with the state or Fed. On top of that NO CORPORATION will give you their taxes knowing that you are doing it manually, plus once you start doing taxes you will know that all the flow through schedules, and forms that are necessary to complete a return are very time consuming. Instead shop around compare lacerte, prosystems, go systems, etc… Your best bet is go work somewhere else for couple of years under a CPA firm then once you have experience in software, workbooks, trails, etc. Then go open your practice, by then you know what it takes

[Missy]

Also make sure you have a PTIN and EFIN if you plan to charge anybody to prepare and file their taxes electronically.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Wanttrepreneur]

Thanks guys! This was a big help!

[TommyTheCat]

agree with the above, I suggest you buy a full blown tax preparation software package. It's not cheap but the efficiencies in having such a program in place far outweigh the costs and risks.

[Tax lady]

I use TaxAct for professionals and it's very economical.

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[ryan.andrew6]

Many of the tax software providers offer a PPR (pay per return) plan. Usually you will have to give them something upfront (around $200) but you may be able to find one that will waive the fee.

Don't bother looking into Lacerte, Prosystem FX, or Gosystems – not to crap on Want2BeCPA. They are great programs (I don't really care for Lacerte but that's just me) but they are high end and EXPENSIVE. Lacerte will cost you several grand minimum, Prosystems will be over 10k (unless you can get their small firm plan which will still be in the neighborhood of 5k) I have no idea what Gosystems fees are but they probably wouldn't even do business with a startup (they are generally considered a “big four” offering although some of the other national firms use it). Even the PPR plans for these will cost a fortune.

Be cautious with some of the budget software like Drake, you really have to know what you are doing and how things are supposed to flow. Drake in particular (for what I do/have done with it) required a lot of manual overrides for what I would deem simple operations.

That said, I would recommend ATX, I find it to be better than Drake as far as flow through and calculations. There are some pretty decent sized firms that use it too. It's owned by CCH and has improved every year I have used it. I would also look into Pro-series and Ultra Tax.

Like others have mentioned make sure you get an EFIN and a PTIN if you don't already have one.

[Author]

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