The Tax Preparation Blog

Archive for the ‘Tax Preparation Services’ Category

Question: Should we use H&R block to to fill our tax returns?

Hello, I am a first-time home buyer, and my husband and I hope to get an Obama stimulus package. Our tax return should be quite simple, just joint return and no additional forms. My husband insists that we should use H&R block service to get a stimulus money, I believe that we can just fill our taxes online as the taxes look simple. Could you advise us? Thank you!

Answer: I would say that you can do it yourself. Use Turbo Tax it is a great e filing tool and it walks you through the process step by step.

Land trusts to benefit from preservation program’s return

A federal program that provides tax incentives to property owners who give up their development rights will return in 2011 after a one-year absence.

Taxation Services

Question: Should You be held accountable for the mistakes your Tax Preparer makes?

Most people don’t know much about Preparing Tax Returns, that’s why we go to those who are supposed to be the professionals. But what about when we are asked to pay for Their mistakes? Is that fair?
H&R Block and Jackson Hewitt now offer “peace of mind” guarantees that are supposed to pay for any errors, but is it what it really seems to be?

Answer: There are many different types of errors…some made by the tax pro and some made by the client. Whose error is it if the tax pro asks if the W-2 was the extent of their income and the client says yes, but the client failed to mention that they got unemployment? Is it the tax pro’s fault for not explaining the myrid type of income or the client’s fault for not bringing it up? What about when someone claim a dependent that the IRS disallows. What about when the IRS insists the activity is a business and not a hobby?

When the tax pro is clearly at fault, most places (H&R included) will pay for the filing of an amended return as well as reimburse the client for any fees or penalties. In the end, financially, to the client, it would be like the error was never made except the client got a chance to sit on some of the IRS’s money for a while. For an additional fee, H&R offers the POM which not only pays the interest and penalties, it pays the taxes owed too up to $9999. Since their butt is on the line, the POM also pays for their CPAs, EAs, and lawyers to fight for your cause against the IRS without you even needing to show up. It is this last feature that is the real selling point. And for $27, most people with complicated tax returns or large refunds usually go for it. With the POM, it is actually beneficial to the client when a tax pro makes a mistake because they won’t have to pay back the extra refund they never should have recieved.

However, neither occurs when it is the client’s fault. If the client says that they are the custodial parent when they are not, if they fail to bring in a W-2, if they say they have records of mileage used for business and they really don’t, then the POM won’t help.

In general, H&R will lean towards the benefit of the client to avoid PR hastles. However, the more obvious it is that the client is at fault, the less likely H&R will pay out. A lot of times it is the client’s word against the tax pro’s.

IRS Enforces Stricter Rules on Professional Tax Preparers

Effective January 1, 2011, the Internal Revenue Service will expand its watchdog duties and require all paid tax preparers who sign, prepare or assist with preparing federal tax returns to have a Preparer Tax Identification Number .

Beware of Bad Tax Preparers This Year!

Six Important Tips For Surviving A Tax Audit

I had just left our Scarsdale, N.Y., headquarters on a business trip a couple of years ago when an Internal Revenue Service collections officer named Celeste Green stormed in, waving a “Notice of Intent to Levy” and demanding that we pay the IRS $25,000 by the end of that month.

Question: Any advice on becoming a seasonal tax preparer by taking Liberty’s or HR Block’s classes?

Do you learn enough in the tax prep course to be offered a seasonal position? Is being a tax preparer stressful? Any helpful comments/advice would be appreciated from experienced tax preparers.

Answer: Block’s classes are great and Jackson Hewitt is not bad too. I would consider them before Liberty. Make sure you take the standard delivery course where there is an instructor to teach the class. Do not take the online course.

The most stressful time would be the first few weeks of the tax season because of the volume. After that, it’s slower so you have more time for each customer.

For me, Jackson Hewitt works better for me because they offered more hours than when I worked at Block. And the location is closer to my house.

Liberty Tax Service Faces Class Action Lawsuit

Columbia, SC (WLTX) – A widely used tax filing company is the being sued for allegedly falsifying documents and ripping of the Internal Revenue Service, as well as their clients along the way.

Build your own commercial- Liberty Tax- Chillicothe Ohio

Question: Status of tax refund?

We filed electronically and our tax preparer said our refund would be deposited in our bank account on March 21. She seemed pretty certain of that date. But it’s not here and the accountant’s office is closed today. Do you think she would have known for sure? Also, is there an 800 number or website where I can check the status of our refund?

Answer: Check the status at irs.gov – click on “where’s my refund”. You will have to enter the primary ss# from the return, the filing status, and the exact amount of the refund as shown on the return. If that shows a deposit today, it might show in your account later today or if not, should show by Monday sometime.

IRS Seeks to Improve Quality of Tax Prep Industry; Tax Preparers Must Act Soon on ID Numbers

Director, IRS Return Preparer Office The Internal Revenue Service recently launched an unprecedented effort to provide some oversight over the tax preparation industry.

PTIN: Preparer Tax Identification Number