crazy calls

[oceanlovin'ea]

I have had two people call me today asking if I can do their return from their paystubs. They had been told it could be done.
I told both of them that I can prepare it and tell them the amount of their refund but IRS isn't even accepting returns till next week. IRS also requires that we have the W-2 BEFORE we file a tax return for anyone.
I told them that this applies to all people who prepare returns. It is IRS rules.

Is there some kind of advertising going on that you can do this?

Linda, EA

[ChEAr$]

I have had two people call me today asking if I can do their return from their paystubs. They had been told it could be done.
I told both of them that I can prepare it and tell them the amount of their refund but IRS isn't even accepting returns till next week. IRS also requires that we have the W-2 BEFORE we file a tax return for anyone.
I told them that this applies to all people who prepare returns. It is IRS rules.

Is there some kind of advertising going on that you can do this?

Linda, EA

For a long time now, even pre dating efiling (pre 1986) preparers have been doing this. They used to simply use the substitute wage statement form and mail the return in on maybe even December 28th.
Even today they're still advertising to bring in last pay stub for tax preparation. How they handle it in office is anybody's guess. IRS really needs to go into offices of car lots and furniture stores, laundries even, before efiling starts to check procedures.

[FEDUKE404]

Falls into the realm of the PT Barnum statement

I have had two people call me today asking if I can do their return from their paystubs. They had been told it could be done.
I told both of them that I can prepare it and tell them the amount of their refund but IRS isn't even accepting returns till next week. IRS also requires that we have the W-2 BEFORE we file a tax return for anyone.
I told them that this applies to all people who prepare returns. It is IRS rules.

Is there some kind of advertising going on that you can do this?

Linda, EA

In this area some of the "known" national firms are preparing refund anticipation loans (or whatever they call them) which can reach up to nearly $10k. Advertisements for such have been on television, and IIRC as early as January 1st.

The process is basically the preparer does an interview, makes a best guess estimate of the federal refund based upon the income/facts presented, and then issues a check. The happy client can walk out the door with a check, and not "pay" anything at the time.

For the EITC crowd, money-in-hand is almost the same as filing a tax return. The logic is the folks forfeit a lot of money if they do not repay "the loan" by returning to have the actual tax return done (when documentation is available) at a later time. And if they decide to do some price-shopping and visit another firm/preparer, they still owe the money back to the first firm after a fairly brief period of time (by ~April 15th?).

It's a marketing gimmick that works quite well, especially for a simple tax return.

I would never consider such a "business approach." And, even if I did, the vast majority of my clients have more common sense than to ever consider such a waste of money.

FE

[taxmandan]

I have had two people call me today asking if I can do their return from their paystubs. They had been told it could be done.
I told both of them that I can prepare it and tell them the amount of their refund but IRS isn't even accepting returns till next week. IRS also requires that we have the W-2 BEFORE we file a tax return for anyone.
I told them that this applies to all people who prepare returns. It is IRS rules.

Is there some kind of advertising going on that you can do this?

Linda, EA

IRS mystery shoppers checking your compliance with the law. You passed, good job!

[taxea]

I would get a retainer before I did the return then hold the return until they provide the W-2s.

[okie1tax]

Calls

Yep, getting those calls. Also, this year the chains that can offer the RALs are limiting them to $1,500. Don't know about small or independent offices.

[Roberts]

Crazy calls?

I've had 2 calls this week already from clients screaming for their 1099's on investment accounts. They do this every year and every year they swear they had them by mid-January last year....

[RitaB]

The good old days

I had a client back there who would hound me to get W-2's done the last week of December. Then, he would wait till the last week of January to get me the information to prepare his 1099's. I don't know why. When I finally decided to send "Been Nice Working For You; You're Fired" letters, he was the first to know.

[taxea]

Crazy calls?

I've had 2 calls this week already from clients screaming for their 1099's on investment accounts. They do this every year and every year they swear they had them by mid-January last year....

Unless the rules have changed I don't think 1099's are required to be issued by the end of Jan.

[Gary2]

Unless the rules have changed I don't think 1099's are required to be issued by the end of Jan.

Most are. The exceptions are the 1099-B, the 1099-S, and certain types of 1099-MISC, all of which are due Feb. 15. Also, WHFITs are given until March 15 for the forms they're most likely to file (e.g. 1099-INT).

[superman]

NEED Money Now

I have had a few of these also. These people always needed there money yesterday and will pay anything to get it. Why should they care it is always EITC money so it was never theirs to start with. I just tell them bring in your last stub pay a depoisit and I will give you a estimate on what you should be getting then when you receive your W2 we will file the tax return. I do not do the RALS or anything similiar so it is always a check or direct dep. No choice so that is the way it is.

A friend of mine that works for the green square stores said that they do the loan thing and charge $45.00 for a max of $1000 dollars. That is crazy!!!

Superman

[FEDUKE404]

Astute observation

I have had a few of these also. These people always needed there money yesterday and will pay anything to get it. Why should they care it is always EITC money so it was never theirs to start with. I just tell them bring in your last stub pay a depoisit and I will give you a estimate on what you should be getting then when you receive your W2 we will file the tax return. I do not do the RALS or anything similiar so it is always a check or direct dep. No choice so that is the way it is.

A friend of mine that works for the green square stores said that they do the loan thing and charge $45.00 for a max of $1000 dollars. That is crazy!!!

Superman

Congratulations - you have hit the nail on the head!!

(See red areas above)

Quite frankly, my perspectives on the appropriate use of my own tax skills changed significantly when I had to consider dealing with "loans" or "security/insurance plans" or "audit protection" issues if I should work with such firms....

FE