IRS FREE E-file for everyone.

[PIGLEE]

Take a look at this Web site, and watch the video

http://www.freefile.irs.gov/

It looks like IRS is offering free e-filing for everyone, and has a big campain to tell EVERYONE about it.

First we have to pay to get a PTIN, which we must have, and then IRS is taking away our business. We can't win.

I was expecting my business to be less this year because of the economy, now this.

Has anyone else heard about this.

[spanel]

NO, its not for everyone.

Taxpayers with a 2010 Adjusted Gross Income of $58,000 or less can prepare and e-file taxes for free.

Its just like it always has been.


Chris

[PIGLEE]

For ones over 58,000 they have a way that you can put your info on the forms itself, the forms do some caculation, and it can then be e-filed that way.

[erchess]

Not quite Chris

Look at this from the free efile site: Taxpayers with a 2010 Adjusted Gross Income of $58,000 or less can prepare and e-file taxes for free. You just have to choose one of the many tax software offerings located at the IRS.gov Free File page. Made more than $58,000? You can use Free File Fillable Forms.

So it may be more convenient for those making at or under the 58K threshold but for the first time the IRS is letting everyone have a way to self prepare and efile for free. My guess is that this will be ok for those of us who are Practitioners because while our preparations will decrease our representation cases will increase.

[wv112]

I sold my accounting and tax service business of 30 years this month...Should have sold the year I turned 65 instead of waiting a year..Client base went down a lot last year.. Figured if I waited til I am 70 to sell, there would be nothing left..Used to do 600 to 700 a year. Last year only 423.

I will work with the purchaser this coming tax season part time. It will be my 39th tax season. I am looking forward to a normal life....

[superman]

The same will use it.

The same people will use the free e-file and I would think that those are the people will never come to us anyways because they are the do it yourselfer and will always be until they get the IRS letter.

My thought is some people think they can keep up with all of the tax law changes and I have found when they do come in the first year most of the time you can always find something that was overlooked and then you just earned a customer for life.

Have a Merry Christmas.

Superman

[appelman]

I wouldn't sweat it!

We're selling expertise. Would you really like to prepare a return using fillable forms?

[Snaggletooth]

TurboTax crowd

Those who use this free site are the same ones who use TurboTax and think they are too smart to need a tax preparer.

This site and TurboTax have a ridiculous approach, but they sell this idea to this market of do-it-yourselfers. And they are winning the battle, cutting into our business more and more every year. Do not take solace in the $58K ceiling. Next year it will be higher, as the process becomes more developed, and eventually there won't be a ceiling at all.

Over the course of a number of years, most taxpayers will lose thousands of dollars in tax breaks because TurboTax and other "free" services have convinced them that the services of a tax preparer are not worth our fee. You and I know this is ridiculous, but this market has bought into the idea.

Perception doesn't have to be truth. But perception rules the world.

[BP.]

I sold my accounting and tax service business of 30 years this month...Should have sold the year I turned 65 instead of waiting a year..Client base went down a lot last year.. Figured if I waited til I am 70 to sell, there would be nothing left..Used to do 600 to 700 a year. Last year only 423.

I will work with the purchaser this coming tax season part time. It will be my 39th tax season. I am looking forward to a normal life....

Congratulations! Please tell us how your season goes, and fill us in on what "normal life" is like!

[AZ-Tax]

Competing

I seen something to this with the discount brokerages (DB) when I first became a licensed securities rep in the mid 80’s. I believe for yrs Schwab has exaggerated their degrading of securities reps to point you don’t need them but with this last economic downturn, I had tax clients that are DIY investors contact me about their depressed investments and I laughed when I heard them relay to me their DB rep told me “wait it will come back”. Some corps went BK and their share value is $0. There is no coming back for those corps. It may not be exactly the same but there are tax preparers that are looking out for their clients and those that are looking out for themselves and like the DB’s, TurboTax is playing both sides of the fence by owning ProSeries professional tax software. Fidelity offers clearing services for full commissioned securities firms. For those of you that don’t already offer FREE 2nd opinion, you should strongly consider offering it. Most DIYers are usually arrogant, conceded….your basic know it allers and don’t care to know they made a mistake. That is not good for their ego so most will never take advantage of a free 2nd opinion but some DIYers cant resist the word FREE. Lastly, if you are not in other lines of business like insurance, securities, mortgages etc., you might want to strongly consider it. Your client is entrusted to you and probably would be grateful to have you as their securities rep and/or insurance agent. One of my tax clients told me a couple yrs ago “I like it that I have one person to deal with and one person who has all my vital personal info”. This client is also an investment and insurance client. Upon initially talking to several auto/home insurance wholesalers in 07, they were amazed that I also offered tax preparation. Today these same wholesalers informed me more auto/home ins agencies are offering tax prep. I believe with most local banks, tax prep is offered but so far BOA, Chase etc. here in PHX does not offer it but I believe its just a matter of time. To this day I cannot figure out why HRB does not offer auto/home ins since they pay rent for their offices yr round. If you do decide to add other businesses, I always found it less threatening to the tax client to just inform them you offer these other products and/or services. It could be immediate or it could take months or yrs but eventually your tax client will come around. I think we can all agree the additional fees and mandated IRS licensing is a positive step for our profession. It most likely will reduce the # of tax preparers and deter some others from getting into the business because before, it was simple to just hang out your shingle. I already know of 2 tax preparers that are calling it quits due to these mandates. Neither have a license. As mentioned, I first became a securities rep, then an insurance agent, then a tax preparer (mid 90’s). Out of all the hats I wear, my tax prep hat gets the most respect. My fellow tax preparers, I believe better days are ahead for us so enjoy your Holidays how ever you spend them.

[DonPriebe]

... but for the first time the IRS is letting everyone have a way to self prepare and efile for free. My guess is that this will be ok for those of us who are Practitioners because while our preparations will decrease our representation cases will increase.

The fill-in-the-form free-file was in place last season. We had a client at our AARP site who used it for his federal, then came to us for NY. The free-file return was a mess - it took whatever amounts were entered on the form without checking. For example, he didn't know how to calculate his tax, so he just carried his taxable income to the tax line. We asked if the return had been acknowledged - he had no idea. Hit 'submit' and that's it.

Maybe it'll work better this year.

[Gretel]

I think it takes some patience. T/P will be responsible for all errors and there is a court case about a T/P going to court because she thought she can rely on Turbo Tax. She did not win. After a while two things will happen: Clients get harassed by tax agencies and look for help and some tax preparers will give up and these clients need to find a new home.