Ef

[T C THomas]

First time filing EF. Would appreciate any helpful comments.

Has anybody read 'The Flat World?'? I understand some CPA firms are having their clients taxes filed in India at very low cost. We should all be aware of this changing world and prepare ourselves. The broadband has brought them next door, you might say and at a very low labor cost.

T C

[taxmandan]

Outsourcing

First time filing EF. Would appreciate any helpful comments.

Has anybody read 'The Flat World?'? I understand some CPA firms are having their clients taxes filed in India at very low cost. We should all be aware of this changing world and prepare ourselves. The broadband has brought them next door, you might say and at a very low labor cost.

T C

FWIW, the IRS has proposed new regs this week that outsourcing tax work overseas must be disclosed to the client and a signed approval obtained (a good idea). I have my doubts that very many tax clients will approve, what with id theft such a concern. It's my understanding that this is primarily for entity returns, seldom for personal 1040s, though that is offered.

I would never do such a thing, my service is based on my professional knowledge and tax expertise, you can't farm out the work without suffering a loss of professional image with your clients. Don't get all excited about the latest fictionalized novel of what the world is coming to, remember Orwell's 1984? I don't think we quite made it to his expectations.

[Bees Knees]

I started e-filing two years ago when Minnesota mandated it for all professionals. I’ve only had two rejects. One when I typed in the wrong employer ID, and another when an ex-husband already had claimed the kid as a dependent. Other than that, everything has gone very smooth. Once you get the hang of it, it’s a piece of cake.

Never read The Flat World. I know about the India thing. Its not limited to tax preparation. I think medical facilities and insurance companies also outsource to India companies.

[T C THomas]

Ef

Virginia made us start e filing too. It looks easy, just like my first year of tax prep 30 years ago. I like this forum.

[Roberts]

I think every other tax preparer should try outsourcing everything to India. I'd be a very busy tax professional!

[Bees Knees]

Interesting article, written by my former boss:

http://www.lcpa.org/lag_foreignoutsourcing.html

[Unregistered]

FWIW, the IRS has proposed new regs this week that outsourcing tax work overseas must be disclosed to the client and a signed approval obtained (a good idea). I have my doubts that very many tax clients will approve, what with id theft such a concern. It's my understanding that this is primarily for entity returns, seldom for personal 1040s, though that is offered.

I would never do such a thing, my service is based on my professional knowledge and tax expertise, you can't farm out the work without suffering a loss of professional image with your clients. Don't get all excited about the latest fictionalized novel of what the world is coming to, remember Orwell's 1984? I don't think we quite made it to his expectations.

The book was non-fiction. All fiction!

T C

[Joe Btfsplk]

Outsourcing

Smaller tax preparation firms will be unlikely to jump on the outsourcing bandwagon. HRB, JH and a few other larger firms may do so. I don't think any of my clients would want their return outsourced to a foreign country.
The client would have almost no way to communicate with the person preparing the return. I the US firm had to have someone as an intermediary to talk with the client and with the foreign preparer, that would be pretty inefficient.

Would you outsource the repair of your Yugo to Yugoslavia?

[JON]

It has been happening for years...

Electronic preparation of returns from India has been going on for 7-8 years. Information scanned and electronically sent-actual preparation enterred their and then sent back to USA for whatever review is necessary. Do you think the people who input at the larger firms know who reviews the return? In most cases not. Preparation can happen in the room next door, down a few blocks, in another town or in a foreign country. There is only one reason it is done-preparation is chaper and if it was of a lower quailty they would not do it. Big TV show on it a few years ago-showed the the India office. If it can be done as well or better the free enterprise moves to it. Remember none of these are returns prepared while a client is in the office.

An article last summer was talking about the pressures in India from workers to get paid more and the fear of becoming to Westernized.

[Bird Legs]

Outsourcing

Remember several years ago, over the news. Transcription of medical records had been outsourced to India. One day a lady, who had been a patient in that hospital, received a
phone call.
The caller said "Mrs. So & So, I have your soc. sec. no., and I am needing $3,000. U S dollars. Please send immediately.

[oceanlovin'ea]

EFiling

I have been electronic filing since I started my own business. The first 2 or 3 years I filed direct with IRS. I never had a single problem. IRS was very helpful if I had a reject. Taxslayer now allows us to EF through them at no charge so I now go through them.

I think EF is the best way to file. You just present it to your clients in a positive way. "I will electronically file this return for you. We will have acknowledgement in a day or two that IRS and received and accepted your return. You can either have your refund directly deposited to a savings or checking account and your refund will be in your bank account on ______. (which is usually less than 10 days) or IRS will mail your check which would be mailed on __________."

I have not had anyone say no to the electronic filing. They are just so excited to get their refund so quickly.

On outsourcing, I recently upgraded my HP printer. I spoke with people from India 3 or 4 times. I was supposed to get the new printer the next day. I took a week. HP has ignored my requests for a "real person in the US to call me". They didn't charge me for the shipping. I was so frustrated. I HATE OUTSOURCING!!!!!!!!!! We have people in the US that would work midnight shifts to answer phones and that would feed our own people.

Linda F

[JON]

Here in MPLS

Nothing was outsourced-patients SS#s and info was stolen right from the hospital records and people are still trying to get their credit ratings repaired. As much if not more of a chance for identity theft in the US as anywhere... Probably more of a chance.

[Joe Btfsplk]

Outsourcing technical support

I use a DSL service that outsources its technical support to India. I can never understand what the Indians are saying since they use strange terminology sometimes and also speak with an accent so different from my Texas drawl. Even a Brooklyn accent is easier for me to understand.

Once I was told to unplug the "yellow cable" To me a cable is a much larger thing than the wire he was referring to. Also, the wire was only yellow in a picture he was looking at and my computer has only black and grey wires.

I finally gave up, paid for a service call, got a US citizen to come and fix the problem.

[DTS]

Outsourcing

This whole outsourcing frame of mind that is being shoved down our throats, drives me nuts! Like most of you who posted comments earlier, I have had tons of trouble when I call some tech that is offshore and try to have a problem worked out.

For the most part, the language problem is not too bad. Can be, but I have been able to get past that. Where I have problems are these techs will not stray from their "script". Typical conversation..."unhook the yellow cable from the back of the computer. I don't have a yellow cable, I have a blue cable. SIR, unhook the yellow cable from the back of the computer..."

With regards to outsourcing, I don't know what the answer is, but it seems to me this country could put incentives in place that would be most appealling to anyone doing business in the USA, but something to encourage an all-American workforce. Something that is "win-win".

Dennis