Discussion:Gaining 1041 expertise
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Dynasty3011 (talk|edits) said: | 5 March 2008 |
| I am self-employed sole CPA and tired of needing to know everything. I would like to specialize and create a niche to offer 1041 prep to small law firms who do not want to be bothered with the complexities. Do you think this is a good business idea? Now that I have "book knowledge" about Trusts and Estates, how do I gain more hands-on experience with complex, comprehensive case studies using my software (Intuit Pro Series)? Is there a better software for the complex issues like separate shares, etc.? Thanks! | |
| 5 March 2008 | |
| First, can we ask you to fill out your profile to know a little more about you?
Second, it's never a bad idea to create a niche. Since we don't know much about where your market is located, we really can't advise you that 1041 prep for small law firms is a great idea. For example, if you are in a rural area, I would doubt that type of work would be steady. In a metropolitan area, such as NY, DC, Chicago, etc., then I am sure there is more than enough business. Networking is the key. Joining your local chamber of commerce, civic group, church group, temple, whatever, etc. is important. And client referrals are a definite bonus. That's where most of my business comes from these days. Once you fill in your profile, more people might be able to assist you with some other advice I mught be missing at this moment. Good luck, Tom | |
| 5 March 2008 | |
| You would gain a lot of experience by partnering up on some real returns with an experienced local EA or CPA who can hold your hand while you do them. Once you become a local expert, you can network with others to get referrals. Many tax pros don't want to learn, or don't have time during tax season to get up to speed. Don't insulate yourself in the CPA community - reach out and touch somebody's hand (my apologies to Diva Diana). | |
| 5 March 2008 | |
| not to stoop to the level of ambulance chasing chiropractors, but would there be a tasteful way to contact families of the decedents in your local obituary column? | |
Dynasty3011 (talk|edits) said: | 5 March 2008 |
| Thanks for your input. I am a sole practitioner CPA, two miles from downtown Pittsburgh, PA, have an MBA, just completed a CSEP (Certified Specialist in Estate Planning) which is basically a self-study program consisting of eight courses in Estates and Trusts. Even after that, however, I feel like it's all just the tip of the iceberg. It is amazing how complicated this area can be. As far as ambulance chasing, my target market would be small law firms who do not have on-staff accountants and do not have the skill and/or desire to prepare their own 1041 forms, rather than my dealing with individual clients. Client referrals at this point would not work as most of my current QuickBooks-type small businesses would have no relationship to Trusts and Estates. Please let me know if you think there would be a market and how I could practice complex returns before offering these services publicly. | |
| 5 March 2008 | |
| In an ideal world, you would do as Kevin suggests.
I am not an expert on fiduciary returns myself. However, one problem you will have is that there is a tax vocabularly and a legal vocabulary, and many of the small firm lawyers will not know the tax vocabulary. So, it's not as easy as saying "Just ask the lawyer if you have a legal question." because there are different levels of misunderstanding (note I say misunderstanding!!!). You can spend some time at a law library and look over some books and forms on the subject of trusts and estates in general. Especially the drafting books with model forms. Then play a game of imagining how you'd do the taxes if confronted with this document, and some made up figures. Finally, though this sounds like heresy, you will never learn it unless you jump in and have a return to actually complete. Just be ready to jump out and say it's beyond your competence is all I can say. | |
| 5 March 2008 | |
| Besides things Tao mentioned, check out local bar association websites for possible leads. | |
Dynasty3011 (talk|edits) said: | 5 March 2008 |
| Thanks, CrowJD. Actually, I am an alum of Duquesne University, so I would have access to the Law library there. Who, in your experience, prepares the 1041 forms for small law firms? | |
| 5 March 2008 | |
| I will give you an example. I am a lawyer, and I do neither 1041's or 706's. I have worked on both of them years ago when I was with a larger firm: at that time, we would either do them, or refer to a tax person. Mostly refer, and the person we suggested was a CPA, but that was primarily because my boss knew his firm. I mean, if the boss had known an EA that did them, it would have gone to an EA etc.
So, I would really have to get up to speed to even think of doing them at present. So there are lawyers, and even other preparers that would refer to you I imagine. Also, it is doubtful that even a mid-sized firm would do these type returns, unless they had a tax partner(s), or encouraged a lot of estate work. Then too, you have some estate planning boutiques. It's hard to generalize about law firms. They seem to have their own flavor depending on geogrpahics even today. With demographics being what they are, there will be more and more tax people looking into this area. Some will never want to touch it. Some will study it a little, and decide not to touch it. But, it sure seems like the demand will be there. | |
Dynasty3011 (talk|edits) said: | 6 March 2008 |
| Thanks, Crow. Actually, next to Miami-Dade County in FL, Allegheny County (Pittsburgh) has the oldest population in the country. Your remarks regarding demographics made me think of this. If anyone out there knows of a good textbook / workbook, please let me know. Otherwise, thanks, everyone. | |
| 6 March 2008 | |
| NCPE has seminars on trusts and estates. Contains loads of practical tips. You might give them a try. | |
| 7 March 2008 | |
| Look around for Banks that have trust departments.
Also, look around for free standing Trust companies. In other words talk to businesses that do fiduciary work for a living. (Yes, some do have in-house tax preparation. But many prefer to farm that out to keep their overhead down.)
Obviously, you will need a high degree of competency in order for you to be considered. | |
Dynasty3011 (talk|edits) said: | 7 March 2008 |
| Which, at this point, I don't know how to get. I am stuck at the book knowledge level. That is why it would be great to have access to comprehensive case studies in a textbook or workbook. I just don't know of any. I have tried contacting professors from universities, and the institute that sponsored the certification for specialist in estate planning and have received zero replies. Thanks for your input. | |
