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This is how it starts! Unbelievable


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My office is across the hallway from our HR manager.   Employee comes in to the office today asking for his W2.   Says he needs it right away so he can file before his baby-momma because she took the kids last year and he wants to file first.   HR manager explains that the W2s will be coming out mid-January like always.  Employee asks "Can I file with my last check stub?"   HR manager replies "Yes".

Here we go with the start of a new tax season.

Tom
Modesto, CA

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H & R Blocks advertises that people can bring their last paystub... I guess they use some sort of RALs.

I guess the difference between H&R block and myself is that they are running a business like a business and make enough money to pay their executives much more money than what I make and they don't even prepare a return. In my case, I don't make enough money to pay someone to answer my phones. Perception is key and people rather pay double to H & R and the person who will prepare their taxes doesn't even know half of what I know.

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In the past, a taxpayer could take their last paystub to H&R Block to qualify for a RAL or RAC. However, their return would not be e-filed until they returned with their W-2. (Full disclosure: I worked in a Premium office and don't think I ever did a RAL or RAC.)

PS: After leaving Block, I make sure that I charge MORE than Block. I still do NOT do RALs or RACs or any other bank products.

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It will happen the same thing that happens with any other return. The return that is processed .0000006 seconds before gets the deduction and the second return will be rejected because the dependents social security was already used.  The second parent will have to paper file and the other will enjoy the money temporarily or permanently. 

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28 minutes ago, Pacun said:

It will happen the same thing that happens with any other return. The return that is processed .0000006 seconds before gets the deduction and the second return will be rejected because the dependents social security was already used.  The second parent will have to paper file and the other will enjoy the money temporarily or permanently. 

Agree, Pacun, but is there anyway to time it so your return goes in that .0000006 seconds earlier?  Do certain software providers have the inside track?  It seems to me like some of the ones that do testing for the IRS might be able to get the return in earlier than smaller firms that have to wait until the actual opening (or at least it used to seem that way.)  Does a big firm like HRB get their returns processed before a small firm using ATX?  I just don't know - and mostly don't really care because I don't want to get in these kind of contests for who can file first. 

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  • 4 weeks later...
On 12/24/2020 at 2:28 PM, Lion EA said:

In the past, a taxpayer could take their last paystub to H&R Block to qualify for a RAL or RAC. However, their return would not be e-filed until they returned with their W-2. (Full disclosure: I worked in a Premium office and don't think I ever did a RAL or RAC.)

PS: After leaving Block, I make sure that I charge MORE than Block. I still do NOT do RALs or RACs or any other bank products.

Just curious what options you give your customers to pay your fees. The software I use and the banks they work with only offer Refund Transfer which is still a type of bank product. Is there any other way to get your fees from the customer's refund?

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I take all major credit cards, PayPal, Venmo, checks/e-checks, and cash. Clients can pay me in person (not since March!!), via a link on my website, or give me their CC or bank information (for e-checks) over the telephone that I then process via QuickBooks. My clients seldom get much of a refund, but I do NOT take my payment out of their refunds.

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11 hours ago, jh5637 said:

Just curious what options you give your customers to pay your fees. The software I use and the banks they work with only offer Refund Transfer which is still a type of bank product. Is there any other way to get your fees from the customer's refund?

I will take a post dated check from my clients with the stern warning that if it bounces I will never do their taxes again.   

Tom
Modesto, CA

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A good seminar instructor (Chris Bird from Champagne IL) this fall stated that the IRS does not have the manpower to chase down the "rush-and-take-the-kids first" abusers.  They not only would have to catch them, but they would also be drug into the facts and circumstances to determine whether someone is righteous or not.  This is true even if the second filer follows up with a paper return.

Not right.

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My clients are all long-term clients, often referrals from other clients, their family members. I trust them to mail me a check or pay via my website after their next payday or give me their CC info to charge on a certain date, that type of thing. During 2020 a few asked to pay me on installments, which I took. Two paid their last installments in December, which is not as late as it sounds because I was preparing returns through 15 October.

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I'm with Lion; I've had a couple of local clients pay me with cash, but most pay with their credit cards through my website.  A few send checks, which I don't mind since PayPal takes out quite a bit in fees.

I've got to admit, taking the fees for 3 years of back tax returns in cash was kinda nice...

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I have them mail me a check with 8879.  Some will send check separately when they get their refund, and some drag it out like I forgot them.  After a friendly call I usually get paid.  The very few, I can't even remember who, if they don't pay by next filing season I don't do return until paid for last and current year first.  It's a system that works well for me.

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10 minutes ago, FDNY said:

if they don't pay by next filing season I don't do return until paid for last and current year first

But are usually embarrassed enough to add a generous tip! 

 

The biggest problem I have with my clients is trying to answer due diligence questions about "documents" when most of the answers I know through long, personal relationships.  But they do get a kick out of it when I ask if little Bobby is still their kid.

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12 hours ago, FDNY said:

if they don't pay by next filing season I don't do return until paid for last and current year first

We also have this requirement for the few who "forget" to pay us.  Once, in over twenty years, I had a client pay for the prior year and current year, and then not return.  Whatever.  Her information was always a bit sloppy so it didn't hurt to see her walk away.

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