* Hey taxpros, have
you checked out my TAX PROFESSIONALS FORMS, SCHEDULES, WORKSHEETS, AND CLIENT MEMOS yet? Why not?
* New at BOB’S
BABBLINGS – “We’re Not In Kansas Jersey City Anymore!”
* My Tax Tip series
at MAINSTREET.COM continues with “Inside the ABLE Account: How the New Tax-Deferred Savings Account Will Affect 2015 Taxes” and “What to Do Tax-Wise in January to Make Sure You're on the Right Track”.
* Jason Dinesen
thinks “The IRS’s Preparer Directory Will Be Bad News for Enrolled Agents”. I do not disagree with Jason, but I think the
list is basically useless anyway.
Being listed on
this new IRS directory is the only real benefit being offered by the Service
for volunteering for its new Annual Filing Season Program. It is no benefit.
As Jason points
out, the IRS database will list a preparer’s name only, and not the postal or
email address or telephone number.
Will taxpayers
really use a list of alleged “IRS-approved” preparers to find a tax pro in the
first place? I do not think so. Many taxpayers are paranoid when it comes to
the IRS period – and would be wary of a restricted list of tax preparers
“approved” by the IRS. But ieven f they
do actually use the list it will not provide any contact information.
The only possible
benefit that this list could provide to taxpayers is that once they have located
a potential tax professional via another source this list can be used to verify
that the potential preparer has a PTIN and truly possess any credential that
they advertise.
Taxpayers will do a
lot better by searching the various databases I have included on my FIND A TAX PROFESSIONAL website.
What the IRS should do is provide an alphabetical
listing by zip code of all PTIN holders, without designations or credentials, so
a taxpayer can verify that a potential tax preparer is indeed “legal” – has registered
with the IRS and received a PTIN.
* Jason follows
that post with some fine whine, correctly noting that “H&R Block Doesn’t Really Have ACA “Specialists” On Staff” (highlight is Jason’s) -
“Here’s the thing about the ACA: no one in
the tax industry can claim with a straight face that they are a ‘specialist’ or
‘expert’ on the ACA.
I have read the law, sketched out examples in my own
notes, taken continuing ed, and given presentations about the ACA. But I am not
an expert on the ACA.
No one, no matter how much we’ve read or how much CPE
we’ve taken, can call themselves an ACA specialist until
we’ve actually dealt with ACA issues in the real world over the course of
several tax seasons.”
Jason is reacting
to Henry and Richard’s tv ad inviting taxpayers to come in and talk to their “ACA
Specialists”. What does H&R consider
to be an ACA specialist?
“ACA Specialists are tax pros at H&R
Block, that have completed several hours of training both online and in person,
to help them be prepared.”
As Jason correctly
points out (again highlight is his) –
“Excuse me, but
using this ridiculous definition of ‘specialist’, almost
anyone in the tax industry could claim to be an ACA specialist.”
The bottom line
takeaway –
“Block Doesn’t Have ACA Specialists.
If you see anyone who claims to be an expert or
specialist on the ACA, just know that it’s all a bunch of marketing hype.”
I would ad - you
shouldn’t pay attention to Henry and Richard’s often ridiculous ads. And you certainly shouldn’t use H&R to
prepare your tax returns.
* Kelly Phillips
Erb, FORBES.COM’s TaxGirl, provides her thoughts on “How Not To Choose A Tax Preparer: 10 Red Flags To Avoid”.
While, for the most
part, Kelly’s list is an excellent one (with similar thoughts to those I
express in “Choosing A Tax Preparer”), I do take some exception to item #3 -
“3. Tax preparers who insist that you mail
your own tax return.”
Kelly goes on to
say -
“Most preparers, however, are require to
submit prepared returns electronically. If they won’t give you the option (and
there’s not another explanation), you should be concerned.”
I do not offer my
clients the option to submit their federal returns electronically, although I
do offer the option to submit NJ returns online via the NJWebFile system (if
the return is acceptable by this program).
The reason I do not offer this option is that I do not, and will not,
use flawed and expensive tax preparation software to prepare a tax return, and
therefore cannot submit client returns electronically. So I guess I have “another explanation”.
But then I do not
accept any new 1040 clients (period, exclamation point). I just want to point out that there may be a
legitimate reason why a preparer does not submit returns electronically, which,
I guess, Kelly does suggest via “another
explanation”.
Kelly does make an
excellent point that much advertising for tax preparation concentrates on free
stuff, such as Jackson Hewitt’s $50 Walmart gift card, and not the
qualifications and competence of the preparers.
And I certainly
agree with her statement –
“Preparers may lure taxpayers in the door
with the promise of low rates and fancy promotions but quickly add on fees for
their services bringing those ‘low, low rates’ way, way up.”
BTW – there is no
way that the fees of Henry and Richard or the others of their ilk are “low, low rates”, even before their
unnecessary “add on fees”.
* It is a bit early to be thinking about GDEs, but William Perez
gives us “State Tax Extensions: Directory of income tax extensions for each state” at ABOUT.COM.
* Trish McIntire
helps to keep the word out there about “Phishing and Tax Identity Theft” –
specifically IRS phone scams.
Trish’s comments
bear constant repeating -
“The IRS does not, repeat does not, email or call
taxpayers out of the blue with the promise of money or the threat of audits,
liens or levies. These calls and emails are scammers so ignore them.”
* More statistics
on why the Earned Income Credit does not belong on the 1040. According to the TAX POLICY BLOG “The Earned Income Tax Credit Still Faces High Error Rate”.
From a recent TIGTA
report -
“The IRS’s Fiscal Year 2013 EITC improper
payment report to TIGTA estimates that in Fiscal Year 2013, EITC claims totaled
approximately $60 billion and that 24 percent of the EITC payments were paid in
error.”
A 24 percent error
rate means $14.5 billion in tax dollars
were improperly paid out to filers in FY 2013.
How many times do I have to say it - the Earned Income Credit does not belong in the Tax Code!
THE FINAL WORD-
Nobody gets more of
your money back than Block?
More likely nobody
takes more of your money in fees than Block!
TTFN
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