Don't Wait For Your W-2--

[taxmandan]

Early RALs

ecb: Thanks for the reply. I was curious as to what kind of money they were putting out, although as independents we can never compete with programs like that. I've never really "talked" to somebody who worked for the "other guys" and am quite interested in your viewpoints if you'd care to share some--if not okay. What's a GM type? The JH software sounds rather sophisticated--what's your opinion of it and their business operation as a whole? Any idea how they get around the interest percentage problem? Although it seems to me that Block has more of a "quality" operation, there's not much doubt that JH has "taken over" the RAL business locally (no other chains here & I started too late to generate any momentum). Neither is the HRB here offering any of the programs described above. Given the type of trade that comes with RALs, I'd think your job would be very stressful--do you feel that it is? Thanks.

dan: Since it's "not a problem" getting the offset info, would you mind posting the IRS toll-free number for the board? Thanks.

Independents can offer the same early loans if their software offers it. The banks are all the same and it can be done if one chooses. My software has that capability, but I choose to not do it.

As a former JH franchisee I have some experience in that area and their software was definately the best thing they had going for them. It was structured very different than most tax software and intended to serve the EITC client primarily. Easy for "Non-tax" people to learn how to input data for simple returns. However, in states with strict licensing laws for preparers their business model isn't effective. They used to hound me about my payroll costs, said I should be paying minimum wage plus a bonus to preparers. Well, our minimum wage as of Sunday is now $7.50/hr. JH always insisted that I should only pay the federal wage of $5.15/hr. But with our licensing laws qualified preparers won't work for less than $10/hr. Tax Consultants, which are required to be present in each office can demand $20-25/hr. Never could get JH to understand. Been an independent office for 9 years now and love it. I get to keep the money.

As for the offset number at FMS: 800-304-3107. There is a form 13 that the client must sign to grant permission for you to access their data.

[Black Bart]

This is what doesn't make sense to me. What makes them more credit-worthy to JH than they are to any other loan company? Is there a secret forumla?

I'd bet the people who are getting those pre-tax return loans could get the same loan at a commercial lending institution. Maybe I'm wrong, but it just doesn't make sense that a person would have good enough credit for the tax preparer, but not good enough credit for the lending institution.

Unless the lending institutions don't take those customers because they're prohibited by law from charging those kinds of rates.

It's not a secret formula and they're not any more creditworthy to JH than anybody else, it's just that the loan company doesn't have tax people on staff and has no idea how much the (probably sole collateral) refund is going to be unless they rely on the word or estimate of some third party. JH has the capability to check the figures and sources to know to the dollar just exactly how much refund the client's getting. The loan company doesn't.

[Black Bart]

As for the offset number at FMS: 800-304-3107. There is a form 13 that the client must sign to grant permission for you to access their data.

Thanks for the number. Do you have any idea how JH gets around the interest rate limits?

[taxea]

Don't wait for W-2

To All:
This is just another way for Block to make more money. They charge for the substitute the client W-2.
taxea

[taxmandan]

Interest rates

Thanks for the number. Do you have any idea how JH gets around the interest rate limits?

As I understand it, interest rate laws apply only to financial institutions regulated by the government. We have many check cashing stores around here that charge the same high rates for payday loan advances. A consumer protection group raised the issue about RAL interest rates but the Attorney General determined that the law only applies to banks, not to others who make loans but don't take deposits. That may change next year in the legislature, they tried this year but it died in committee.

[ecb34691]

To taxmandan:
If you left JH 9 yrs ago, that was in the DOS days. The new software is 3-4 times better now. Re-written by Arthur Anderson (prior to the bad days) and floated on top of their A-Plus or what ever it was called platform. Much easier to navigate, etc. Definitely not EITC based now although we still have the accelerated interview mode passing Sch A.

To Bart:
In our area we have been drawing Block clients for many reasons including price, not forcing all the "other options, etc." and the fact we have each office open at least one day a week during the off season and our primary office open 4 days a week off-season including evenings.

[Unregistered]

Which tax SW shows all possible refund options?

To Bart.
Our s/w gives a screen for the client which shows all possible refund options with the refund from IRS directly to the client to the various bank products they can chose from and all associated costs.

Which Tax SW does this?

[Unregistered]

Which Tax SW does this?

Please ignore my question. I should have finished the thread before asking.

[Black Bart]

No problem.

Wish I had a dollar for every time I've started holding forth on a subject and my wife said "that's not what they're talking about!"

Nothing human is foreign to me--FRENCH PROVERB

[Black Bart]

Atx

Hey Bart, this will be my first year using ATX. I hope I won't be dissapointed. I am a bit nervous about it.

This is my second year and I'm nervous too, but I think it'll be okay (let's both keep whistling past the graveyard). I switched because Lacerte priced me out of their office ($2K-$3K) and there's no way I can beat ATX's $500-$600 and still have decent software.

We had lots of trouble last year with their electronic file processing going haywire (at their office--not mine), but they eventually got it all straightened out. The ten-day EF people weren't too upset about stretching delivery time an extra week, but a few of the desperate RALers were upset when it ran to four or five days rather than one or two. I got terrible technical support for the most part, but fellow ATXer Sandy (a board member) of California said hers was great. I'm not sure what the difference was except that I learned after tax season that I had not signed up for their "Super Support" phone line (cost-$80 extra). I don't know if she bought it or not. Anyhow, I bought the tax package a while back and today I called and signed up for the SS tech line (now $110), so maybe I'll be able to talk to somebody with sense when problems come up.

I think you'll like the software. It's very similar to the 1040 form and (I think) easy to use. One downside is that it's not as "smart" as Lacerte--by that I mean that you have to know something about taxes to know when something's missing or not. For instance, sometimes EIC won't calculate unless you open the EIC form. Don't panic, though--it will figure it right; it's just that you have to notice it's missing and click on the form to bring it to the 1040. The upside there is that they have an absolutely great diagnostics module. Always look at that before you finish up a return and, if you didn't do EIC or whatever, it'll tell you that this client is a possible EIC or such-and-such form candidate, plus all other possible blunders and/or mistakes you may have made/overlooked are brought to your attention.

Other things: Upside: All states are included-all free. Downside: You have to read the instructions or know something about that state to figure if certain schedules are needed. It won't automatically post all state sub-schedules like my Lacerte did. It's not bad if you don't do too many states, since you're generally somewhat familiar with the forms necessary for your surrounding states.

Upside: All electronic filing is free--no limit, no extra charges.

Gimme a post if you get stuck--maybe we will have run into it last year.

[Unregistered]

US Treasury Refund Offset Number

THE NUMBER FOR US TREASURY OFFSETS IS 800-304-3107.

The automated system tells you that you can only request information if you are the Taxpayer but ITS just that an automated system. HOW WILL IT KNOW! It does state that your number is being recorded.

It will tell you that their records are updated on a daily basis and if there is an offset and they will provide you with the Agency, Bank, etc. who they should contact.

I work for a large Tax preperation company, actually the largest and if a client has doubts or wants to know about a debt offset, I have them call the number and find out even before the return is completed.

Last year the Department of Agriculture (FOODSTAMPS) caught alot of people in the state of TX who owed them money. I got 5 no telling how many my office received.

I will be joining this message board because you guys have some very informative information.

-shanibthetaxlady