Increase on preparers due diligence failure for EIC credit
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You are right. Instead of a contingent fee, just bill them at $350 per hour. That is about what a lawyer or some CPAs charge. It is a lot less than most Doctors charge.Comment
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I thought about this thread while listening to a story on NPR this afternoon. The story was about the "Buy Here, Pay Here" car dealers. Turns out they make up about 1/3 of all car dealerships in the US.
Typically they mark up the car an average 200% over their cost, get a high down payment in relation to the actual cost of the vehice, then finance at rates in the 30% range. A high percentage of the cars get repossessed, and the dealer just cleans the car up, makes minor repairs, and puts it right back on the lot to start the process all over again.
So how do people who have to borrow money at 30%+ manage to accumulate money for a down payment? About 40% of sales at these dealerships occur in the Jan - Mar time frame, and they offer tax return preparation services for their customers...."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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MLINDER - about the audit
ML -- I do a few hundred EITC returns and was trying to gauge/guess/judge the amount of new risk involved.
I know from your past posts that you do good work and are with a reputable firm, but was wondering if maybe the sheer volume of returns y'all do was what triggered the audit. Didn't you say when you originally posted about it last year (or whenever) that your company did two or three thousand EITC returns?
Thanks.Comment
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The auditor wanted back up for both income and expenses.He never would answer what back up we should have.This is why I wanted to fight the fine.My boss took the easy way and paid the fine.The fine was against the preparer not our EFIN and not against me.If either of these had happened I would have talked him in to fighting it.Comment
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