This is war

[Bees Knees]

http://articles.moneycentral.msn.com/Taxes/PreparationTips/10ThingsYourTaxProWontTellYou.aspx

10 things your tax pro won't tell you
Unless you have a complicated return or a one-time big financial event, you won't necessarily get what you pay for and even may be better off on your own.

You want to know why do-it-yourselfers are not welcome here?

We as an industry are under attack by the media. What are we going to do about it? Give free advice to do-it-yourselfers?

Not on this message board...

[SueBaby]

http://articles.moneycentral.msn.com...ntTellYou.aspx



You want to know why do-it-yourselfers are not welcome here?

We as an industry are under attack by the media. What are we going to do about it? Give free advice to do-it-yourselfers?

Not on this message board...

WOW!! I don't like that either. Who wrote that??????

[DTS]

You're right!

I read this late last night and was furious. She makes mention of "so-called Enrolled Agents" close to the start of the article.

I decided last night that I am going to write a couple of letters, the first going to the "so-called journalist".

Dennis

[JoshinNC]

Now I'm a "so called EA"

Well, I'll just have to put that on my business cards won't I? This is definately a hit piece dreamed up by some "journalist" looking to get an article in by the deadline. I didn't know CPA's charge 15 time what HRB or JH charge either. I could just charge 10 times more and corner the market!

Pure BS, plain and simple.

[Zee]

This is an indeed an insulting and poorly researched article. I'm really angry with the statement, "On average, tax preparers make more mistakes, and costlier ones, than Josie Taxpayer does". I wonder where the writer got that statistic, from Turbo Tax?

I think questions posted on this board by those preparing their own returns, should be forward to Smart Money for a reply.

[Y2KEA]

As usual, truth & accuracy are sacraficed in the name of sensationalist journalism.

[Bees Knees]

One thing we can do as an industry is refuse to cooperate with the media when they call wanting our opinion on tax issues. Kerry Kerstetter, an Arkansas CPA, http://www.taxguru.net/ is quoted in the article saying:

"For one W-2, mortgage interest and a couple of kids, TurboTax is just fine"

Kerry, did you know your quote was going to be used in a hit piece against our industry? You use to be a speaker for Gear Up, back when it was a reputable tax seminar. I know you do not think most people would be better off doing their own taxes.

This just illustrates why we need to be careful and keep our mouth shut sometimes.

[thomtax]

Web site

If you go to his website at www.taxguru.org , you will see that it appears to be mostly an ad revenue generator site. He advertises just about everything. I did not look at all the ads, but afterwards was surprised that the did not have sexual aids on there.

I also notice that he states, in his words and opinion, "referred to by other CPAs as the Tax Guru". If I was guessing, I would guess that most of the reputable CPAs refer to him as something else, probably unprintable.

LT

[Lion]

So called

I bristled at that phrase. Dennis, do write to that so-called journalist on behalf of all EAs.

[Nashville]

Clean Up Our Act

This is no doubt a controversial post, but to some degree we should look and see where some of these complaints originate, and do the best we can to take away their cannon fodder.

Which of the "10 things" are generally true, totally untrue, or dangerously only partially true?

1. "A big name doesn't always mean better service." Absolutely true. This is not a Block-bashing session, but my general observation is that the bigger companies offer only more resources, and seldom more personal service.

2. "You wouldn't believe what I get away with." This is true, but this is a critique on the government, the IRS, and lack of enforcement, and has absolutely nothing to do with the tax preparation industry standards. Most of us would love to see the IRS crack down on abusive preparers who allow taxpayers to "get away with" abuses.

3. "You'd be better off without me." Absolutely false. The family with one w-2, a kid and a mortgage thinks they have saved a bundle on tax preparation fees simply because they don't know what tax breaks are available to them. My "average" recovery going behind a TurboTax return? Between $700 and $900 dollars, and ranges from $0 to $4200 this year.
Why don't they print that??

By the way, ever notice how many of these websites advertise Turbo Tax?

4. "What are my qualifications?" Same story as #2 above. The industry supports qualifications for tax preparers. The government has done nothing.

5. "If it's February, you're too late." This is true. It's like the long gas lines when gas is in short supply. No different than any other industry, and we do the best we can. The tone of this article implies no responsibility on part of the customer.

6. "You hired me, but your return is being done by some guy in India." This may or may not be true. I have found it to be more blown-up heresay than anything else, and am not personally aware of ANY tax work being outsourced to India - not even by the big firms.

7. "Taxes, shmaxes -- let me see what else I can sell you." Very true. If you're more interested in selling RALs, IRAs, and other financial products than doing taxes, you deserve all that this paragraph brings to light. And one area where I do think we should "clean up our act." Some of us do RALs because of overwhelming client demand, and this is not the same thing as pushing financial products.

8. "If I screw up, I'll pay up." No comment, as there is an element of truth to the article. But why should a preparer go beyond penalties and interest and be responsible for someone's actual taxes? Tantalizing, however, for any readers who think someone else should be responsible for anything.

9. "Tax preparation is an art, not a science." If anyone can tell me what this means, I'll listen. Makes for eloquent speech I suppose.

10. "You could find a much better deal if you'd only shop around." The most ridiculous observation of all. Whereas this is universally true, what kind of quotes will the client get? You have to practically analyze the client's situation to even come close to estimating a fee. Sorta like having someone put your car on a rack, tear off your brakes and wheel to diagnose an axle problem. The repair shop has already spent 90% of their cost before they can quote a price.

[Nashville]

So-Called EAs

Yes, to those who are informed, this writer only trumpets his ignorance.

[Bees Knees]

My act is very clean, thank you very much.

As much as I hate to admit this, all this kind of talk will do is push for the move to require all paid tax preparers to be registered on a federal level. Since I am already an Enrolled Agent, there is no skin off my back. However, there are plenty of qualified non-licensed preparers out there doing a great job that will now be required to jump through even more hoops.

Let’s all learn from the Doctors and Attorneys; If we are regulated, we charge a lot more. If Mr./Miss Journalist thinks CPAs charge 15 times more to prepare a tax return, wait until everyone needs to be licensed like a CPA or EA. Tax preparation is never going to get any easier. Just more expensive. And Turbo Tax is going to get a whole lot more expensive when all the professionals refuse to patronize ProSeries next year.

[LawrenceGR]

Bees

does this mean you'll be changing software next year? I read this article a while back, I don't think this guy really know stick'em. I wonder if he goes to a pro or if he buys a box of knowledge.

[Nashville]

ProSeries and LaCerte

Many of us won't buy these products because their parent company is dedicated to putting us out of business.

I'll bet there's plenty of discussion on this, but would like to see it in a separate thread so we can stay on this topic.

[glgillis]

Smart Money Magaziine

This article originally appeared in the March issue of Smart Money Magizine, a Dow-Jones publication. They have a " Ten Things" article every month where they roast somebody. Just happened to be our turn!!!!