“Early Bird” Specials ... 20% off until June 15th
It may not be the first thing on your mind now that your tax practice consists only of extension returns, but there’s
good reason to plan ahead. We’re getting ready for the biggest tax season yet with more e-file support and more
Windows features. And you can get it all at our best prices of the year if you order now: 20% off all Standard Level and
Premium Level products, including discounted e-file upgrades for high-volume filers.
Order securely over the internet, or phone, fax, or mail us. We accept all major credit cards.
There’s no better time to get ready for next year.
Professional software at personal prices.
It’s no longer a novelty. More than 50% of all individual returns were e-filed this year!
That means that if you aren’t offering e-file to your customers,
you’re missing the competitive boat ... and it
won’t get any better! Congress has mandated that
the IRS expand their e-file program so that
80% of all individual returns will be e-filed by 2007. So
now is the time to join the e-file trend the painless
way ... with HowardSoft’s Tax Preparer.
It’s easy to join. Once you’ve ordered Tax Pre-
parer (Standard or Premium Level), you’re half-
way there ... and we guide you the rest of the
- We’ll help you complete Form 8633 (available
on our web site or by mail from us) to get
your IRS Electronic Filing Identification Num-
- Once you receive your EFIN, we’ll register you
to use our transmission software and sign you
up for bank products.
- Once you receive our software (by mid-
January, when the IRS first accepts e-file re-
turns), we’ll help you transmit some test re-
turns to make sure you’re ready for real.
It’s that easy, and you’re ready to transmit as few
or as many returns as you want from mid-January
through mid-October, 2006.
You can still print graphic forms. Even though the
IRS sees only the electronic file, you can still print
returns for your clients with the familiar look of
the IRS forms. And you always have the choice of
filing the graphic forms with the IRS instead of e-
filing the return, because full Windows-graphic
printing is built-in as well.
Top 10 reasons to e-file with Tax Preparer:
- 1. Unlimited e-file – FREE and built-in.
have to turn away customers who want their
returns e-filed because e-file is built into all
Standard Level and Premium Level CD-ROMs
at no additional cost. It’s easy to sign up, and
we’ll help you with the process so you can
get set up as easily as possible.
- 2. e-file as easy as printing. You just generate e-
file output from our Print Menu then import
the output to the transmission software that
we provide. Once you’re connected to the
internet, you can transmit to the IRS and get
acknowledgements on-line. It’s that easy!
- 3. Transmission fees lower than ever. The FREE
e-file that’s included with all Standard Level
and Premium Level CD-ROMs now lets you e-
file for just $5.95 per federal return without
having to purchase anything else.
- 4. No transmission fee for e-file Platinum. If you
expect to e-file at least a hundred returns next
year, you’ll benefit from our e-file upgrade
that lets you file as many returns as you want
without a transmission fee.
- 5. Personal customer service for fastest
response. We don’t make you go-it-alone with
the cryptic messages you get from the IRS.
We give you immediate personal help so you
can resubmit rejected returns quickly.
- 6. Software updates at lightning speed. While
the IRS makes changes in their e-file
specifications during the tax season,
HowardSoft responds with software changes
that you can get over the internet within
hours. No big-company bureaucracy here to
slow us down!
- 7. Fast help with the all your returns. Whether
it’s a complex decedent return or a simple EIC
return, we help you get it through the
restrictive IRS e-file formats by phone, e-mail,
or internet. In some cases we’ll even change
our software to help you with unusual returns
that aren’t immediately accepted by the IRS.
You can’t get that kind of help anywhere else!
- 8. Fewer IRS notices to your clients. Because
you get immediate feedback from the IRS on
issues that your client would have to handle
months later, you can avert IRS notices to
your clients on such problems as erroneous
SSNs, missing data, and mistyped names.
- 9. Banking products for easier collection. We
offer a full range of banking products,
including Refund Anticipation Loans (RALs)
for your clients and automatic deduction of
your fee from your client’s refund.
- 10. Confirmed receipt by the IRS. There’s no risk
of penalty for a return lost in the mail. You
get confirmation of acceptance by the IRS
NEW: A web site for your tax practice!
We now offer a product that can help you build a
presence on the web, collect information from
your clients, and manage your practice. Customized
for tax professionals, the package includes a
website template, web hosting, domain name
registration, business e-mail accounts, on-line
client interviewer, and on-line scheduling. Call us for
pricing and more information at (858) 454-0121.
You’ll be surprised how much is done for you!
What Congress has in store for you
After two major tax bills signed into law just before the
election last year, you can expect this year to pale by com-
parison. While taxes are still on the mind of most legisla-
tors, the only bills likely to be passed are those that extend
provisions slated to expire after this year. But for tax year
2005 there is no significant tax legislation on the books.
Instead, you can look for legislation that will provide relief
in future years through:
- Continued itemized deduction for state and local sales
tax. Although set to expire after tax year 2005, we ex-
pect it to be extended another two years.
- Minimum tax relief through indexing. Even though eve-
ryone is complaining about the alternative minimum
tax, it’s unlikely that any major change will take place
because the current law is just too lucrative for the
government. Instead, expect some minor relief through
higher exemptions and fewer preferences.
- Continued credit for retirement savings. The credit for
low-income filers who contribute to an IRA or pension
(Form 8880) is set to expire in 2007, but you can ex-
pect it to be extended through 2010.
- Renewal of 15% maximum capital gains tax. The 15%
top rate on capital gains and qualified dividends is set
to expire in 2009, but you can expect it to be retained
through the end of 2010.
- Renewal of special credits and deductions. Credits and
deductions set to expire after 2005 include the teach-
ers’ allowance, R&D credit, work opportunity credit,
and welfare-to-work credit, but you can expect them to
be renewed for at least another year.
What the IRS has in store for you
Even without a new tax bill, there is plenty that will change
because of previous legislation. Many provisions of the bills
that passed last year take effect for the first time in tax
year 2005, and there are several scheduled changes from
prior bills as well. Nevertheless, the IRS is in good shape to
complete most forms well before the next tax season
starts. In fact, as of May 12th the IRS had already released
advance drafts of 20 of the forms we support! Here’s what
we already know from these advance drafts and the legisla-
tion that is already in effect:
- A jump in standard mileage rates. The standard deduc-
tion for business mileage will be 40½ cents per mile,
up from 37½ cents per mile. Not surprisingly, this is
the biggest one-year jump in history. (The standard de-
duction for medical or moving expenses will be 15
cents per mile, up from 14 cents per mile. The rate for
charitable use will remain at 14 cents per mile.)
- Special depreciation allowance no longer available. The
bonus depreciation of 30% or 50% of the cost of new
property is no longer available. This windfall expired at
the end of 2004, with no legislation to extend it.
- Uniform definition of a child. This change is long over-
due! Last year’s legislation eliminated the inconsisten-
cies in the meaning of “qualified child” among a variety
of benefits starting in 2005: the exemption for depend-
ents, head of household filing status, child tax credit,
child and dependent care credit (Form 2441), and
earned income credit (Schedule EIC).
- A jump in the maximum IRA deduction. The maximum
deduction for each taxpayer will be $4,000, up from
$3,000 for 2004, and $500 higher if age 50 or more.
- IRA phaseout thresholds rise. The levels at which the
phaseout of IRA deductions start will take another jump
that exceeds inflation. The phaseout level for taxpayers
covered at work will start at $70,000 for married filing
jointly and qualifying widow(er) and $50,000 for single
or head of household, each $5,000 than for 2004. (As
before, no deduction is allowed for income $10,000
higher than the start of the phaseout.)
- Deduction for domestic production. A new deduction of
up to 3% of the qualifying income will be available for
a variety of activities performed in the United States.
The IRS has not yet revealed how this broad provision
will be implemented on the forms, but it represents a
significant change for many businesses.
- Car donations restricted. Although it is not clear
whether Form 8283 or Schedule A will be redesigned
to reflect it, your charitable deduction for a donated car
will be limited if the donee sells the car rather than us-
ing it. The deduction is limited to the gross proceeds
from the sale.
- Standard deductions rise. The standard deduction will
rise as a result of the usual indexing with inflation. The
new standard deductions are $5,000 for single and
married filing separately, $10,000 for married filing
jointly, and $7,300 for head of household. The deduc-
tion is increased by $1,000 ($1,250 if single or head
of household) for each taxpayer who is blind or age 65
- Earned income credit rises. The EIC will also rise as a
result of the usual indexing with inflation. You may
now have a credit for income as high as $37,263 with
qualifying children, and $13,750 without.
- Social security base rises. The maximum wage subject
to social security tax will be $90,000 for 2005, up
from $87,900. The tax rates are unchanged.
As far as the forms go, very little is changing. Instead,
most of the changes will be reflected in the IRS instructions
and publications, continuing the IRS trend to make the
forms appear simple through added complications in the
underlying instructions. This will place an added burden on
those who prepare returns manually to notice changes in
the instructions and perform more complex calculations
than the forms imply. By contrast, the changes will be
automated in Tax Preparer, including some of the most ob-
scure changes hidden in infrequently read IRS publications,
so you’ll hardly notice any difference in how you prepare
Quick answers? Fast ordering?
Go to www.howardsoft.com
Remember that our web site is open 24/7 and has a wealth
of information you can’t find anywhere else. You can order
over our secure site with a credit card, get details on our
products, and even track the progress of the IRS in their
design and release of forms for next year! And we have
helpful links to the IRS and state sites!