When are refunds being isssued?

[tpnl]

I had a client come in today that said "My cousin told me the IRS is giving out money at the end of this month."
Me, "Do you know who told your client that?"
Client, "HRB told him this last night."
Me, "That might be a loan and not an actual refund."
Client, "No, he said it was his refund."

So, does anyone know when the IRS is releasing money this year? The only thing I could find on the IRS website was they will start processing returns January 31, 2014 and issue refunds 14 - 21 days after that. If you have new/more information, I would love it.

Thanks

Kerrie

[BOB W]

Jan 31 is when returns are being accepted. Refunds thereafter, 1 to 2 weeks. HR was not talking about Refunds but processing start date. Client misunderstood.

[David1980]

Return funding estimates are covered in IRS Pub 2043. This pub used to be the refund cycle chart, obviously now it is just general information on how to check the status.

"Caution
,
Don’t count on getting your refund by a certain date
to make major purchases or pay other financial obliga
-
tions. Even though the IRS issues most refunds in less
than 21 days, it’s possible your tax return may require
additional review and take longer."

They even have a spiffy video on the where's my refund page: http://www.irs.gov/Refunds/Where%27s...sy,-and-Secure.

As far as "end of this month" I wouldn't be surprised if there were some on Jan 31 (we saw some on Jan 31 last year), but that's probably not a good expectation to set. Unfortunately there isn't really an incentive for people to be honest. If Jack's Taxes says "21 days" from Jan 31 and Johnny's is promising the refund Jan 31 the taxpayer probably ends up at Johnny's. And it's not like Johnny is going to be able to pull a return back once they have efiled if the refund isn't in by Jan 31.

[ATSMAN]

If this person still insists on getting a refund by the end of the month show them the way to HRB.

I keep the local phone #s of HRB, Liberty and JH handy for such people!

[WhiteOleander]

I am at Block. I can assure you our clients are not getting their refund by the end of this month. The person misunderstood what was said to them.

[taxea]

Quickest way to find out is to download the IRS info from IRS.gov

Liberty Tax in Hawaii is advertising preparing returns from W-2. This flies in the face of false advertising as far as I am concerned as we all know that they are pulling clients in and then telling them the return will not be filed until Liberty receives the actual W-2. I think this stinks. It is an old HRB tactic. Anyone care to comment?

[beck]

Pub 2043

I used this Pub last year as part of my client package. It is a handy little one page flyer with some good info. As of today, IRS has not updated it for 2013. Any rumblings or thoughts? Or am I just thinking too far ahead? It's only Jan 22nd. HaHa!

Thanks,
Beck

[ATSMAN]

Quickest way to find out is to download the IRS info from IRS.gov

Liberty Tax in Hawaii is advertising preparing returns from W-2. This flies in the face of false advertising as far as I am concerned as we all know that they are pulling clients in and then telling them the return will not be filed until Liberty receives the actual W-2. I think this stinks. It is an old HRB tactic. Anyone care to comment?

They have Ms. Liberty flagging people in my state as well.

They want to start the return using the Dec paycheck stub to let you know what you may get back as a refund, and sign you in!. They will file it with IRS just like the rest of us on 1/31 with a W2.

Keep in mind these are mainly EITC taxpayers expecting a large refund so it makes sense for them to hook them in early before they come to us!

[powerage]

I work for JH, and I see there is no respect for JH or HRB on this forum. This is my 9th season with JH, and our training is excellent. In my office alone are 2 EA's with decades of experience, and a third whom just passed part 1 of the exam. I'm not sure about other franchises in JH, but in mine, we are required to do our 20 practice scenarios, which range very from easy to very difficult. Heck, my required ethics course was 2 hours long. Our courses are approved for CE credits. I'm sure HRB has great training also. Liberty, on the other hand, they are shady. I've heard a lot of crap they try to pull in my area alone. Also, we all know clients get false info from a family member or friend, plus they only hear what they want to hear.

Our clients know that they will not get their refund until at least 2 weeks after Jan. 31. They can apply for a loan or a line of credit from separate companies, but it has nothing to do with the tax return or JH.

Cheers, y'all have a good season. We are already busy, I got slammed on Friday. With returning clients.

[ATSMAN]

Many of us independent tax preparers got started at HRB or JH. I got started at HRB. I think the lack of respect for these franchise firms comes from the horror stories we hear when we pickup a new client. For example last week I spoke to a lady who was charged $400 for tax prep at HRB in my town last year. She qualifies for EIC and yes she did get their RAL product.

I am sure there are many qualified tax preparers that work for HRB and JH, but I think it is their business model pushing bank products that bothers us!

I would be just as critical of an independent tax preparer pushing bank products at ripoff prices.

[MDEA]

Ral product

First HRB does not have RAL products they only have ERC products. Part of the price that is charged for bank products is for bad debts.I had over $20,000 of non collected fees. In my pricing I charge every bank product $50.00 to cover for non payments. I am an independent preparer in a store front office in a poor neighborhood. My fees run $100.00 per return cheaper than the majors. We all have to set fees to fit our area.

[WhiteOleander]

HRB does not offer RALs. We will offer a RAC. This is simply allowing our fee to be paid from the refund. Our fee is the same no matter how they choose to pay for it. There is no interest charged. If they choose a RAC, the bank will charge a fee for handling the transaction. The IRS deposits the refund into the acct at the bank and the bank sends the net to the client. The client can choose to have the bank send them a check, direct deposit it into their own account, or they can get a debit card loaded with the funds.

Now, if there is some reason that the IRS holds the refund we will not get our fee. The taxpayer has a timely filed return. We have no money. They rarely come in on their own and pay for it. The refund may be held for a debt or child support. Or if the IRS holds the return to check something before they release the money, they do not honor the request for the RAC. They just send the money straight to the client.

I am not going to say that every return done by Block is correct. I myself have seen some jaw dropping returns that were prepared at a Block office. I have also seen some horribly prepared returns from independent preparers, some CPAs. It is everywhere in this profession. We have 7 EAs in our office. We have several non credentialed preparers with many years of experience. We have a CPA in a sister office. We try to do the absolutely best returns we can.

[Black Bart]

I work for JH, and I see there is no respect for JH or HRB on this forum...

I wouldn't say there's no respect for JH/HRB here; it's just that (as ATSMAN said) we go by what we hear from complaining ex-clients. I'm cheaper, but have no real idea what they charge and (as YOU say) "..we all know clients get false info from a family member or friend...". Fees aside, most franchise work I've seen is good quality and I know well-qualified people there. Early-season people used to annoy me saying "Block/Jackson are giving refunds now; are you?", but I don't have much "quick-money" trade now (mostly settled boomers/oldsters). Actually I feel bad about sending them several "junk" cases over the years (bet I've got lots of company here) and can't imagine how they handle all comers.

This is my 9th season with JH, and our training is excellent...Liberty, on the other hand, they are shady. I've heard a lot of crap they try to pull...

Well, you've certainly got an airtight case there against Liberty, so no point in getting into that.

I am not going to say that every return done by Block is correct. I myself have seen some jaw dropping returns that were prepared at a Block office. I have also seen some horribly prepared returns from independent preparers, some CPAs. It is everywhere in this profession. We have 7 EAs in our office. We have several non credentialed preparers with many years of experience. We have a CPA in a sister office. We try to do the absolutely best returns we can.

To me, this seems the best explanation for all of us.

[Nashville]

StoreFront Bashing Thread

I see this has turned into a Block-bashing thread [or JH/Liberty], with various defenders.

I think we need to come to grips with the different business models involved. It is not (nor can it be) the same business model for HRB as for those of us in a single-owned proprietorship. The different objectives even creep into the tax preparation. I prepared taxes for a guy once who got out of his chair and left me when he found I would not give him an instant check for his refund. Obviously this guy was looking for a different kind of service than what I do.

HRB has diversified into a financial products provider, with a listing on the stock exchange. For example, Cir. 230 prohibits us from charging a fee based on a percentage of the refund. This applies to HRB as well, and pertains to the tax preparation fee. However, it is entirely possible (and even economically necessary) for a BANK to charge a fee based on principle. If HRB charges a BANK fee for an RAC, this would not be limited by Cir. 230.

Those of us not franchised with one of these large companies cannot possibly compete with what they spend on advertising. But I feel like I do get some benefit when I see Block telling the American public they left a billion dollars on the table last year because they did it themselves instead of consulting with a trained preparer. [Incidentally, I'm certain they are correct and not just full of hot air like most advertising].

If we've been in business very long, we will encounter going behind returns from these large storefront companies. We will go behind other preparers such as ourselves, and CPAs. I've been around a long time, and have seen good and bad from every type source. Quite frankly, some of the very worst are from attorneys not trained in taxation.

If you visit this forum quite often, you will grow to appreciate the broad-based knowledge and training of White Oleander, a long-time Block employee. There is also Gary who works in a Block office in Phoenix - a retired nuclear physicist, certainly not some "bubba, pass the taters" preparer like myself.

Let's focus on our own practice - to a large degree I can provide what most others can't - and they can provide what I can't. It's not worth fretting about the guy down the street. We all have a different business model with respect to the services and products we provide, our objectives for growth, training, advertising, etc.

[powerage]

Much respect

Hi y'all, thanks for your responses. I've skimmed through them, and I have much respect for y'all. I mostly lurk here. I love reading the problems and solutions to difficult tax situations I'll probably never see, that y'all solve. I've learned a lot from yinz. One year, my 2nd season, I had a brutal return (for me). Stuff I had never done in real life, only on paper. Long story short, they looked it over and were happy. As was my boss.

As my sig says, you all have much more tax knowledge than me. Y'all can run circles around me with your knowledge. The scary part is, I have far more tax knowledge than the average American.

My last thought, I always tell anyone I meet "Do not take tax advice from someone who does not prepare returns for a living". I sent out a tweet saying if I found out a friend or follower did that I would send them every IRS pub.

Cheers y'all!