Tax preparation software and bank products

Hi Everyone, I have been a sole proprietor for the last three years and this will be my fourth year doing taxes. However, i have recently transmitted about 75 returns and have had 12 that they are being reviewed or got a portion of their return. Should i be worryed for my business? Any help, sugestions or advise is greatly apprciated.

They have tax liens for back taxes, child support, etc. Other reason for a hold is a dependent has been claimed by someone else.

Chris

Thanks for your input. It looks like they are checking the EIC more closely.

Thanks Again.

Friendly advice

On new dependents such as nieces and nephews you need to be careful on this. IRS told me for due diligence you need to at least photo copy SS card. Looking at it objectively there maybe a pattern here with your customer base. Do not be afraid to kick a client out of your office. I work low end returns too and I enjoy them. Use common sense if it talks like a duck and walks like a duck. It is a duck

Chris

ACJ IN ATLANTA JUST SAW YOUR QUESTIONS ON LINE JUST CHECKING TO SEE IF YOU ARE OK NOW IF NOT SEND ME AN EMAIL TO PAULSAUNDERS306@AOL.COM, AND I MIGHT BE ABLE TO HELP YOU. YOU CAN TEXT MY CELL . TAKE CARE.

Chris Tax in Los Angeles, California said: Friendly advice

On new dependents such as nieces and nephews you need to be careful on this. IRS told me for due diligence you need to at least photo copy SS card. Looking at it objectively there maybe a pattern here with your customer base. Do not be afraid to kick a client out of your office. I work low end returns too and I enjoy them. Use common sense if it talks like a duck and walks like a duck. It is a duck

Chris

Thanks. I work low end returns due to the side of town im located at, althought they al have 1099 and those are the ones that are being reviewed, they are they same clients for the past 2 years with the same employer. Was wondering if its cause all they recieve is EIC.

If they receive 1099 only for income and show a profit that should not be a red flag. If they have a 1099 and cash income to get EIC that could be could be, Some people set up a phony cash business to get EIC. EIC is serious as you know. Get the client to sign an 8821 authorization you need to know what is going on to protect yourself if there is a pattern here.

You do not want to cross the line between mistake and fraud

Chris

Thank You Chris I really appreciate your help. Every time I tried calling the IRS to question it they are not corporative at all. I stop doing 1099 and self employed altogether; it’s really not worth the stress. Thank Again.

I'm interested in hearing about affordable tax software as well. padreslakers@gmail.com

R.Taxes

I agree

I need any advice on marketing new clients
I am doing web, facebook, craiglist and passing out flyers

Chris

Chris Tax in Los Angeles, California said: R.Taxes

I agree

I need any advice on marketing new clients
I am doing web, facebook, craiglist and passing out flyers

Chris

The first 2 years my son helped me advertise, he walked the entire neighborhood (3 miles radius around the office) knocking door to door and speaking to the adult (s) in the house letting them know we where there and what we offer and do for free and that we beat any competitor’s price. He also went to the bingo locations and past out flyer too, and of course the Uncle Sam outside, flag’s and we setup a moonwalk bounce outside so when clients come with there children, coffee, water and popcorn inside. With God’s Blessing we have been succeeding every year. Hope this helps.

Sounds like a Liberty Franchise marketing. I worked for Liberty franchises and corporate for 4 yrs. I have been doing this stuff on a small scale. I do taxes out of my home

R Tax I have a brother in San Antonio

Chris

Chuck McCabe in Richmond, Virginia said: I'm glad that IRS testing of tax preparers for basic competency is on the horizon. This is a very positive development for the tax industry!

I agree, if you don't no how to do a schedule C before tax season than you have no business doing the tax return. IRS watches schedule C filers closely and so therefore it should be done correctly and with someone that understands the laws not just how to fill out the form.

Southernstylelady in Jackson, Mississippi said: Can somebody please give me info on how to do a schedule C. These traing videos are great until I actually get someone in here, saying that they are self employed. Any information provided would help me out A LOT!!!!!
Thanks
Toria

My advise to you also is that the IRS has a lot of new rules for tax preparers and can get fined, penalized and even spend some time in Jail. When you do a tax return you should know what your doing not just for yourself but for the cient. It is not fair to the client if you don't and schedule C is watched closely by the IRS. What are you going to do if you trigger an audit by not known what you are doing?

keep preaching

Schedule Cs are usually full of alot of lies. I kick some out of my office. Others I have them sign a disclosure letter they are providing me the truth.

Chris

I agree, there is a lot of fraudulent Schedule C filers, trying to claim the EIC. There usually not hard to figure out because they dont know much about the tax law and are very unsure of what there actually income and expenses are. Thats good that you run them off.

I was only saying that not knowing the tax laws well on the Schedule C can potential get you in trouble. Schedule C filers with no other income the IRS looks at very close.

Schedule C you can cheat both ways.

1.Claim money you never made to get EIC and Aditional child credit.
2. Hide money to afford taxes.

Chria

Chris Tax in Los Angeles, California said: Sounds like a Liberty Franchise marketing. I worked for Liberty franchises and corporate for 4 yrs. I have been doing this stuff on a small scale. I do taxes out of my home

R Tax I have a brother in San Antonio

Chris

I consider myself small too no more than 300 returns.
Having family here in SA is great, I love it here!

R Taxes. Are you planning to take your business to the next level
My guess is 300 returns * $150.00 = $45,0000 (close to your Gross Income) What do you do to supplement your income ?

Chris

Chris Tax in Los Angeles, California said: R Taxes. Are you planning to take your business to the next level
My guess is 300 returns * $150.00 = $45,0000 (close to your Gross Income) What do you do to supplement your income ?

Chris

Lol, not sure yet, i've had two other idea's but nothing set in stone yet. Having a full time job, family and doing taxes seasonal is busy enough for me. I've had a couple of ideas but nothing set in stone yet. So what are your ideas/thoughts or what do you do for the remainder of the year?

Chris Tax in Los Angeles, California said: R Taxes. Are you planning to take your business to the next level
My guess is 300 returns * $150.00 = $45,0000 (close to your Gross Income) What do you do to supplement your income ?

Chris

Lol, not sure yet, i've had two other idea's but nothing set in stone yet. Having a full time job, family and doing taxes seasonal is busy enough for me. I've had a couple of ideas but nothing set in stone yet. So what are your ideas/thoughts or what do you do for the remainder of the year?

Lighthouse Tax Solutions is comprised of a group of independent tax preparers, and has been for the past thirty one years. After years of paying high software prices that seemingly increased rapidly with every tax season, we knew there had to be a better way. Our company came to realize that by joining together with other tax professionals and becoming a tax software provider, we could render the same top of the line professional tax preparation software, including tax, technical, banking, and sales support. The Lighthouse Tax Solutions membership includes all of this along with outstanding and superior customer service for the unheard of price of $299 plus $19.95 s/h ( 1040 package) or $499.00 plus $19.99 s/h ( 1040/Corporate Returns package). Both packages include free unlimited efiling, free unlimited states, and all forms. As an added bonus, as long as the software membership is renewed in future years prior to June 1st, these prices are locked in forever “they will never, ever go up”!!! Contact us today….this ridiculous offer will not last long.

Lighthouse Tax Solutions is a service bureau for Crosslink software, meaning we get the same product that you would buy direct from Crosslink, but for a significantly lower price.
We are able to do this because we purchase their software directly from them in large quantities, thus getting a discounted price. We then pass the savings on to you.

Crosslink for Tax Year 2011 includes unlimited E-filing, all states, and online updates, and all individual schedules, tech support 24/7, online tax research, free installation and conversions from prior software.

You can visit our website at www.lighthousetaxsolutions.com

Interested in taking your tax business to the next level. Diversification is the key. Provide Financial Planning Solutions call me or visit www.PeteAcosta.com You can email me at Pete@PeteAcosta.com. Dedicated to helping Tax Professional expand their business.

DO IT YOURSELF TAX SOFTWARE FOR WEBSITE in Tucker, Georgia said: I'm a new CPA and thinking about offering tax preparation services. I would like to offer customers the opportunity to do their own taxes online, similar to what taxactline and turbo tax offer. Can someone recommend an approve software. Any comments/suggestions on how to do this? Is there anyone who currently doing this with their website? Please let me know. Thanks

We have site online at www.1040.TaxMix.com for client to prepare their one taxes online Got it thru Drakesoftware / 1040.com. I you are interested in diversifying your practice. Financial Services is great way to separate yourself from the average CPA. visit www.PeteAcosta.com you may contact me at Pete@PeteAcosta.com

erbrowning24 in Smithville, Tennessee said: Lighthouse Tax Solutions is comprised of a group of independent tax preparers, and has been for the past thirty one years. After years of paying high software prices that seemingly increased rapidly with every tax season, we knew there had to be a better way. Our company came to realize that by joining together with other tax professionals and becoming a tax software provider, we could render the same top of the line professional tax preparation software, including tax, technical, banking, and sales support. The Lighthouse Tax Solutions membership includes all of this along with outstanding and superior customer service for the unheard of price of $299 plus $19.95 s/h ( 1040 package) or $499.00 plus $19.99 s/h ( 1040/Corporate Returns package). Both packages include free unlimited efiling, free unlimited states, and all forms. As an added bonus, as long as the software membership is renewed in future years prior to June 1st, these prices are locked in forever “they will never, ever go up”!!! Contact us today….this ridiculous offer will not last long.

Crosslink for Tax Year 2011 includes unlimited E-filing, all states, and online updates, and all individual schedules, tech support 24/7, online tax research, free installation and conversions from prior software.

You can visit our website at www.lighthousetaxsolutions.com

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I don't see any different in Lighthouse Service and fees compared to other similar businesses like TRX for example.
Besides, the problem with the delay in paying the preparers the Service Bureau Fees from Tax Year 2009, TRX offer the
same.

Has anyone received their their Rebates from TRX? I received a small one last week - the memo was unclear what it was for.
However, the amount is incorrect if it is for the service bureau fee. I am due much more than that.

Rochelle in Jacksonville, Florida said: Has anyone received their their Rebates from TRX? I received a small one last week - the memo was unclear what it was for.
However, the amount is incorrect if it is for the service bureau fee. I am due much more than that.

would like to see what you got from them. You must be the only ERO that has gotten anything from tha company!!

Tax Preparer in Muscatine, Iowa said: The question becomes why are you still going with TRX??? They did this same thing to you guys last year as well! Ultimate Tax Service has software options for every tax preparer. They have been paying out rebates all year long to their customers! Go to www.ultimatetaxservice.com for more details!

Don't be another one that is duped by TRX!

I didn't go with them (trx), just wanted to know if Rochelle really got her SB fees! cause i sure didn't

fastaxman in Huntsville, Alabama said: would like to see what you got from them. You must be the only ERO that has gotten anything from tha company!!

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I received a check in the mail dated 3/25/11 for $37.72. It stated "Fee Receipt". I'm not quite sure what that meant and I haven't had time to enquire. I vaguely, remember something about a rebate they would give this year, it might have to do with it.

But I most certainly know it can't be a service bureau fee because he owe me waaaay more than that. I'm still with them because I like the software, the online training courses, and the overall service. I did not do the service bureau fee this year. I don't have that many bank products. Most of my clients pay out of pocket. But from the emails I received from them, they were sending out weekly or biweekly service fees to those who participated.

Hello folks! I am a first year tax preparer, and I found it to be such an intriguing and rewarding experience to provide this service to our fellow citizens. I am looking forward to the changes coming forth for legit tax preps too!
I would like to take my newfound career to the next level for the following tax season by operating my own tax service as opposed to working as a "W-2" for one of the bigger companies. Does anyone have any advice on how to set up shop? For example, I know I will need to renew my ctec & ptin, but where do I go for an ERO number? Also, it seems DLC Taxwise is the preferred choice for e-filing, but what about it makes it stand out?
Thank you in advance for any guidance!

You have to get EFIN from the IRS to efile Tax returns. We paid our 60.00 PTIN fee last yr. You usually do not have to renew a PTIN. There is no IRS additional education requirement this year for us. You do have complete the CTEC education. Also, call CTEC they are very helpful

Chris
CTEC Preparer California

Ambiprep in Irvine, California said: Hello folks! I am a first year tax preparer, and I found it to be such an intriguing and rewarding experience to provide this service to our fellow citizens. I am looking forward to the changes coming forth for legit tax preps too!
I would like to take my newfound career to the next level for the following tax season by operating my own tax service as opposed to working as a "W-2" for one of the bigger companies. Does anyone have any advice on how to set up shop? For example, I know I will need to renew my ctec & ptin, but where do I go for an ERO number? Also, it seems DLC Taxwise is the preferred choice for e-filing, but what about it makes it stand out?
Thank you in advance for any guidance!

Hi Ambiprep, I would love to speak with you regarding your upcoming venture into the Tax Industry. I am sure that I can guide you in the right direction and help you be prepared. please email me at brandonlee@qmtaxsolutions.com I too remember how frustrating it can be to get started in this business!

Rochelle in Jacksonville, Florida said: ----
I don't see any different in Lighthouse Service and fees compared to other similar businesses like TRX for example.
Besides, the problem with the delay in paying the preparers the Service Bureau Fees from Tax Year 2009, TRX offer the
same.

The biggest difference is the fees, including bank fees, flow directly to the preparer. Also, we have a tax practice ourselves keeping us in tune with our clients' needs. Finally, we have excellent customer service. If fact, our software clients have my personal cell phone number so they can call anytime. Though I am the owner of Lighthouse Tax Solutions, I also still do the majority of tech support. I treat others the way I expect to be treated. If more information is needed please contact us. Visit our website at LighthouseTaxSolutions.com.

Good Afternoon Ambiprep:

I can definitely help. I have walked that road personally, and part of our company's services directly relates to getting people started in their own tax business. Email me at Lakelighthouse@gmail.com. Our website is Lighthousetaxsolutions@gmail.com. I look forward to speaking with you!

Tom

Every so often I see post in regards to TRX rebate payments concerning 2009 and this tax season. I can’t say one way or another about their situation for the 2009 tax season and with the Bank they used then. I can tell you…. This year through ATLAS Financial Services and Citizens Bank, rebates have been paid and being paid on time every month because I’m personally the one that makes sure it happens.

My advice when choosing your software provider would be make sure you do your homework (bank fees) because there are aggressive reseller’s out there that will say just about anything to get your biz.

Bob Johnson
Vice President
ATLAS Financial Services

Rochelle in Jacksonville, Florida said: -------
I received a check in the mail dated 3/25/11 for $37.72. It stated "Fee Receipt". I'm not quite sure what that meant and I haven't had time to enquire. I vaguely, remember something about a rebate they would give this year, it might have to do with it.

But I most certainly know it can't be a service bureau fee because he owe me waaaay more than that. I'm still with them because I like the software, the online training courses, and the overall service. I did not do the service bureau fee this year. I don't have that many bank products. Most of my clients pay out of pocket. But from the emails I received from them, they were sending out weekly or biweekly service fees to those who participated.

Rochelle, Please e-mail me your infomation include your EFIN. I will run reporting on your rebates and provide an awnser to your question above. bjohnson@atlasfinancialservices.com

Hi Bob

Glad to meet you.

I just started my tax business this year and I need some marketing ideas for the off season

Chris

help in Spring, Texas said: My company has used taxvision for past couple of years and we are not happy. Just the other perparer perviously stated the tech support is a joke and you have call in continously because they either hang up after you've been on hold for 2 hrs or the idiots that answera the phone don't have answers for you. They send you to voicemail and you Never ,Ever get are areturn call. This tax season I have been waiting for debit cards because 90% of my customers don't have bank accts and this is an easy way for them to get their returns but today is 2-08-11 and we are still waiting for them to send out the cards. The bank is telling us that taxvision never ordered cards through them and the idiots that answer the phones tell us to call the bank. On top of we have went thorugh two pay cycles and still have not been paid. This company is horrible it is a nightmare. Furthermore all the returns that we filed th first week had problems because taxvision gave the IRS the wrong bank acct numbers so the Irs processed the returns and sent them directly to my customers with no payments to my company. You can imagine how crazy this was trying go back and collect fees that were supposed to be taken out! This whole ordeal makes me want to scream. And it's only 2-08-11

I would love to talk to you about joining the Lighthouse Tax Solutions Family. Email me at Lakelighthouse@gmail.com and/or visit our website at Lighthousetaxsolutions.com.

tax headache in Miami, Florida said: OMG!!!!! I'm trying to be patient with this company but they are running all my clients away!!!!!!! I have had one customer to get about three checks and then had to chase him down to get a repayment!!!!!! What a joke I hate the fact that they dont know anymore than me and I had to pay for these service.

VERY UPSET CUSTOMER!!!!

I would love to talk to you about joining the Lighthouse Tax Solutions Family. Email me at Lakelighthouse@gmail.com and/or visit our website at Lighthousetaxsolutions.com.

Rochelle in Jacksonville, Florida said: ----
I don't see any different in Lighthouse Service and fees compared to other similar businesses like TRX for example.
Besides, the problem with the delay in paying the preparers the Service Bureau Fees from Tax Year 2009, TRX offer the
same.

A major difference is that fees go directly to the preparer in the first place, not through Lighthouse Tax Solutions.

Tom I am not being hard with you.

That is illegal. A fee cannot go directly to a Preparer from a refund.It has to go to a third party first. If this was true, why do we we need you?

Chris

Chris Tax in Los Angeles, California said: Tom I am not being hard with you.

That is illegal. A fee cannot go directly to a Preparer from a refund.It has to go to a third party first. If this was true, why do we we need you?

Chris

I Agree, collecting ERO fees via Form 8888 is illegal.

Bob Johnson

Atlas Financial Services

Hi Chris:

I may not have made myself very clear. I apologize. Bank rebates, etc., passes through us to the preparer. In other words, the monies do not rest in our account. Also, Lighthouse Tax Solutions charges a nominal service bureau fee to begin with (9 dollars). We do not charge outlandish fees and then give rebates. Besides being a Service Bureau, I also have my own tax practice. I strife to treat others as I would like to be treated because I know what its like. I hope this cleared up any misunderstanding.

Tom

Tom in Murfreesboro, Tennessee said: Hi Chris:

I may not have made myself very clear. I apologize. Bank rebates, etc., passes through us to the preparer. In other words, the monies do not rest in our account. Also, Lighthouse Tax Solutions charges a nominal service bureau fee to begin with (9 dollars). We do not charge outlandish fees and then give rebates. Besides being a Service Bureau, I also have my own tax practice. I strife to treat others as I would like to be treated because I know what its like. I hope this cleared up any misunderstanding.

Tom

Just wanted mention that with our muti-bank program ATLAS, we charge no Service Bureau Fee and with all of our banks we pay ERO fees daily.

ATLAS the muti-bank system provides local bank option and if you have enough volume and want to work with a local bank ATLAS is a complete solution including Tax Prep, E-file and bank settlement products.

ATLAS is also RAL capable... For anyone out there that knows a bank that will process your RAL loans (locally) we have the technogly, experience and the system to process all aspects of a RAL loan.

Bob Johnson
Vice President
ATLAS Finanical Services

Yes that is illegal, but who in the world is doing that!!! That is far from what I said. I apologize for any misunderstanding!

Besides operating my own personal tax practice, I also operate a Service Bureau.

Once an ERO prepares and tranmits a return it naturally goes to the IRS. When the IRS authorizes the refund, the bank that is used authorizes me to print a check or deposits the refund in the taxpayer's account only. The bank used deducts my nominal service bureau fee as well as the transmitting fee, which goes to the software manufactor, and the remainder goes to the taxpayer. If there is no bank product used, I, of course, receive nothing. Some service bureaus charge additional fees, and/or keeps the bank rebates if there is any. It is my policy to allow any bank rebates to pass through to the ERO instead of keeping them. Failing to charge ERO(s) as much as others is certainly not illegal. I have been preparing taxes 31 years and a Service Bureau for 2. Everything I do is above board and will always be.

Thanks for you time,

Tom

www.Lighthousetaxsolutions.com

Tom

Very impressed with your answer. You know what you are doing The written word can be unclear some time.

Chris

Tom and Bob:

I am very impressed with both of you.

I need clients. This is my first year on my own. I did marketing. I am a product of four years with Liberty Tax. I even do free returns to build clients. This is a referral business

Any advise

I am a California CTEC Preparer

Chris

Hi!
This was my first year in e-filling and couple times I've run into problem regarding signing form 8879: if only person from MFJ present, how do I get the second one to sign 8879 and how I make sure that this signature is indeed his signature?

I was under contract this year to do out of state RALs. It did not work out. You do not have to witness a signature on a tax return You. do have to witness a signature on a bank product. I checked this out with IRS legal department. Call them to verify this

Chris

IRS do not have anything to do with bank products. Frankly, at the IRS Forum last year, the Bank topic came up
by one of IRS Reps. The rep informed us that they are trying to get rid of the banks because they feel the banks are profiting from taxpayers. We commented in support of the banks, IRS was not even aware of all the documentations that the banks required a taxpayer to sign.

I have out of state clients also and they sign by fax and mail. I have not seem anywhere that you must witness the signature on a bank product. It states that the taxpayer must sign the disclosure before they are transmitted.

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Chris Tax in Los Angeles, California said: I was under contract this year to do out of state RALs. It did not work out. You do not have to witness a signature on a tax return You. do have to witness a signature on a bank product. I checked this out with IRS legal department. Call them to verify this

Chris