Why you should chose a local tax preparer over H&R Block, Jackson Hewitt, or Liberty Tax Service

Often, people seeking assistance with their taxes take the path of least resistance and choose one of the “Big” tax services, such as H&R Block, Liberty Tax Service or Jackson Hewitt.  Let’s be realistic, they are convenient; they are everywhere and they are well known.  However, you should really consider using a smaller tax service.

1.       Many of the “Big Box” preparers are unfamiliar with the tax code.

Part of the reason that there is an H&R Block on every block and a Jackson Hewitt in every Wal-Mart is that they hire a ton of seasonal tax preparers every year.  This means that the people that they hire have little to no experience and very little training.  Once tax season is done, they will go back to looking for a job, presuming that they find a job, they won’t be back next year.  Some of the people are hired because they cannot find a permanent job.  Is this the person you really want with your sensitive personal and financial information?

 

2.      Local companies keep money in the community and bolster the economy all year.

Large tax companies are generally franchises that people can buy.  The person who owns the franchise must send hundreds of thousands of dollars to a large corporation in order to buy the franchise, purchase supplies from out of town companies, and send a percentage of their profits to the multinational company to pay overpriced CEOs.  With all of this money flowing out of the local community, the local economy struggles.  The struggling economy employs less people and creates an oversupply of employees, which reduces wages. 

Your local tax preparer spends money in the community, creating jobs and a tax base.  The tax money will be used to help build roads and help your local community.

Not only that, you will feel better about yourself if you support a local working class family, rather than a rich CEO.

 

3.      Your local preparer will be available all year long.

After April 15, the large tax offices close almost all of their offices.  There is no one there to go talk to if you have a question, get a letter from the IRS, need a copy of your tax return, or any other problem that may come up during the year.  When they re-open the following year, the person that is there will be a new face that is unfamiliar with you and your tax situation.

 

4.      Your local preparer may charge less.

Local tax preparers are part of your community.  They understand the struggles of the people in it.  We generally can’t afford expensive commercials, thousands of storefronts (which are vacant eyesores 2/3 of the year), or ugly green bowties, nor do we send a large part of our profit to someone else.  Who do you really think pays for that?  You do! 

 

How to choose a tax preparer

Choosing the right tax preparer is incredibly important.  Not only is the tax code complex, you are trusting all of your sensitive personal information to this person.  The person preparing your taxes must be trustworthy, intelligent, and experienced.  Making the wrong decision can cost you a lot of money, cause a major headache, and in extreme circumstances, will land you 3 hots and a cot in the Federal Pen.

Here are some suggestions on what to look for in a preparer (many of these are suggestions by the IRS, but I have added a couple of my own.

·  Check the person's qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number (PTIN). In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it.

Note:  Charles M. Langevin, Jr. of Simplified Document Solutions has been preparing taxes for many years and has completed the IRS’ AFSP Program.

·  Check the preparer's history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.

Note:  Simplified Document Solutions is a BBB accredited business with no complaints and an A- rating.

·  Find out about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. Also, always make sure any refund due is sent to you or deposited into an account in your name. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.

Note: Simplified Document Solutions offers one of the lowest service fees in the Atlanta area.

·  Ask if they offer electronic filing. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990. Make sure your preparer offers IRS e-file.

Note: E-file providers must be fingerprinted and go through a FBI criminal records searc to become an authorized E-file provider.  Simplified Document Solutions is an IRS e-file provider. 

·  Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.

Note:  Simplified Document Solutions is open year-round and helps people with both taxes and bankruptcy throughout the year.  DON’T USE SOMEONE YOU MEET AT STARBUCKS!

·  Make sure the preparer has a secure office space.   The IRS still requires that preparers print out sensitive taxpayer information and maintain signed copies.  If an unauthorized person obtains access to your information, your identity could be compromised.  Storefronts with large glass windows do not provide sufficient protection against identity thieves.

Note:  Simplified Document Solutions takes protecting your information seriously.  After-hours access to our office requires the use of electronic access cards in three places, a regular key to get into the office and another key for the file cabinets.  There is only one person with access to all of these access points.  Our electronic files are protected by a world class firewall.

·  Find someone with sufficient experience preparing taxes.  Tax preparation is a seasonal business.  Unfortunately, that often means that the person that is hired in the big tax stores are often unemployed people who are just there to make a quick buck.  They have little to no training, have not had sufficient inquiry into their background, and will only be there one season. 

Note:  Charles Langevin is very experienced and is really the only one that will be handling taxes at Simplified Document Solutions.  We do not hire seasonal people with no experience.

·  Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.

·  Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.

·  Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

·  Make sure the preparer signs the form and includes his or her preparer tax identification number (PTIN). A paid preparer must sign the return and include his or her PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

Employers Should Expedite W-2's; Here's Why!

January is here and employees are turning their thoughts from the holiday season to tax season.  In order to properly file their taxes, people are waiting for W-2's, 1099's, 1098's and other tax forms that must be provided by the companies that they work with or pay throughout the year.  In most cases, these companies are required to provide them no later than January 31, however, they are not required to wait that long, and in most cases it just doesn't make sense to.

• Providing tax documents early is easy;

Just about every employer, mortgage company, student loan servicer, bank, brokerage firm, and other company that issues tax forms uses a computer to track the appropriate information.  Years ago, when everything was done by paper and pencil, it took the entire month to calculate everything, that is simply not the case anymore.  These things can be generally be complete on January 1 simply by pushing "print all."  Why wait until tomorrow to do what you can do today?

 

• Providing tax documents early may keep you out of trouble with the IRS;

If you fail to file W-2s on time, the IRS can assess a penalty of $30 per W-2 if you file the correct form within 30 days of the due date. If you file between 30 days of the due date and August 1, the fine increases to $60 per form, with a maximum fine of $500, or $200 if you operate a small business. Failure to file forms by August 1 results in a fine of $100 per W-2, or $500 a year for small businesses and $1,500 annually for others. Small businesses are those with gross receipts of $5 million or less for the three most recent tax years.

• Providing tax documents early makes your employees happy;

I know many business owners dread tax day because they owe taxes.  However, for many of your employees (especially those not being paid much), they get refunds (some quite large) and they rely on these to support themselves.  I have seen people get most of their income just from their income tax refund.  Consider this, some people will take their tax refund to prevent eviction from their home, repossession of their vehicle, shutoff of their utilities, and to pay off a high interest credit card.  In these cases, filing early is not just convenient for the employee, it is necessary.  Even the employees that will wait until the last minute won't mind you getting them the documents early.

• Providing documents early saves you money;

For those employers still utilizing paper paystubs and W-2s (I encourage using electronic delivery so your employees don't have to bother you when they need paycheck stubs and W-2s for their financial transactions.); you can send out the W-2s with the first paycheck stub of the New Year, saving postage and envelopes.  This may seem like a small expense, but if you have several employees, this may be hundreds of dollars per year.

• Providing documents early may reduce employee theft;

I wish I could tell you that every employee is honest and upstanding.  Statistics show that most theft in a business environment is caused by employee theft.  Even those who are honest may be tempted to steal if they are facing losing their home or car or getting utilities cut-off.  We all have an instinctive survival instinct for ourselves and our families.  You don't know the financial situation of those working for you.  Will an early tax refund save them some pain?  Maybe.  Is the chance of reducing the risk worth the small amount of extra effort to expedite your tax refund?  I think so.

 

 

 

Simplified Document Solutions provides professional tax preparation and support for individuals, as well as bankruptcy support, and educational representation and consulting.  We can be found online at www.249bankruptcy.com or www.simplifieddocumentsolutions.net. 

 

Our office is conveniently located just north of Atlanta's Hartsfield-Jackson International Airport at 100 Hartsfield Center Pkwy. Suite 500, Atlanta, GA 30354.  We can be reached by telephone at (678) 490-5841 or via email at 249bankruptcy@gmail.com.