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.

5 Simple Actions to Reduce your 2014 Tax Liability and Increase your Refund!

           With only a few days left in 2014, it may seem like there is nothing that can be done with such short notice to reduce your tax liability.  This is simply not true.  While you can’t change how much income you made over the course of the year or increase your tax withholdings that were set too low over the course of the year, there are some small things that you can do to reduce your tax liability and/or increase your tax refund before the end of the year.

           All of these things may not be a good idea for everyone.  Whether these things are best for your situation depends on your past tax years, your current tax situation and income, and your expected tax situation next year.  If you are unsure if something is a good idea, it might make since for you to contact an experienced tax professional before making any moves.

• Pay Your Student Loan Interest:

            This is one of my favorite moves since it is pretty easy and you don’t hear about it very often.  Student loan interest is deductible up to $2,500 per year, even if you don’t itemize your deductions (subject to income requirements).  I generally pay the accrued interest on my student loans on December 30 to reduce my income for that calendar year.

• Pay Your January Mortgage Payment:

            If you do itemize your deductions, one of the biggest deductions is your mortgage interest.  Pay your January mortgage (that you have to pay anyway) in December to increase the amount of interest you pay in this calendar year.

            NOTE REGARDING MORTGAGES:  During the 2012 & 2013 tax seasons, a problem started showing up.  People who had always itemized their deductions suddenly realized that it no longer made financial sense to do so.  This was due to mortgage modifications that drastically reduced their interest rates.  To those that got mortgage modifications early in the year or late last year, you might find that it doesn’t make sense to itemize anymore due to the drastic decrease in mortgage interest paid.  It’s not all bad, if you are one of these people, you are probably saving a lot of money on a monthly basis, even if it means Uncle Sam gets a little more at the end of the year!

• Donate to Charity:

            Have you noticed that charities are pushing for money this time of year?  Not only are people in a more giving mood around the holidays, they are also looking to decrease their tax liability.  Since you can donate to most charities and churches through their website, you can really do this up until the clock strikes midnight on New Years.

            If you don’t have money to give, you can go through your closet to see if there is something that can be given to Goodwill or Salvation Army to be sold in one of their thrift stores.  They will give you a 2014 receipt as long as you can get it to them before they close on December 31.  This might give you a chance to reduce those overflowing closets after Santa gave the kids all of those new toys.

• Invest in an IRA:

            IRAs are a great investment tool to plan for your retirement in the future and reduce your current tax liability.  Most people can deduct a contribution up to $5,500 per year to an IRA and you don’t have to itemize your taxes to do it.  For certain low-income taxpayers, you may also be eligible for a credit of a portion of the contribution.  So you get to take it twice!  An added benefit of this contribution is that you have until April 15 to contribute and you can even use your tax refund to contribute.  Please contact an experienced tax professional to get more information on how to maximize your contribution.

•     Time your invoices:

           

            If you are self-employed, time your invoice to reduce your tax liability.  For those who have had an unusually good year, you might want to send out your last invoice to your clients after January 1.  If you have had a bad year financially and you expect to do better next year, get your invoices out now so you make more income this year.

Simplified Document Solutions provides professional individual tax preparation by an experienced and IRS Certified tax preparer for a fraction of the cost of the competition.  You can reach Simplified Document Solutions by telephone at (678) 490-5841 or you can schedule an appointment online by going to www.simplifieddocumentsolutions.net or www.249bankruptcy.com.  Like our Facebook page for specials.

                                                                                                          

Simplified Document Solutions

100 Hartsfield Center Pkwy.

Suite 500

Atlanta, GA 30354