IRS to start regulating paid tax preparers

[Pacun]

H and R block will start charging more since their preparers will not come from the street in August, attend a class, and be preparing taxes by January 15. They are very reasonable with their pay though. Yes, I said that. They pay them little, but they don't have any experience. Do you now agree?

I have taken a lot of classes from HRB and they are very good classes. I have had a chance to help my friends with their homework and no matter how good the classes are, taxes cannot be learned in 3 months. I always tell my friends, if you do not pay HRB more than $400 for your retun, you didn't get someone with experience behind the desk. Isn't that the case?

[taxguy057]

I worked for H&R for two seasons awhile back and trust me I know how raggedy they can be. I took the test they gave back then and it wasnt that bad so if the test is along those lines then we all will be ok! It wasn't that the classes weren't up to standard (they were great), but there has to be a passion factor to want to help people prepare their tax returns. Most are there to earn xtra money so they could care less if they do the returns right or not. Plus the culture in the H&R office is to get them out as quick as possible so you can get to the next unsuspecting victim of this madness. I have my 4 yr degree(BS MGT,Minor Accounting) and had taken tax classes in college. My professors always said you could make good money partime by doing taxes, hence me signing up for H&R, but I knew you were to treat it as a learning experience b/c of the fact that tax laws change and the public is trusting you to take care of their tax prep needs. Needless to say I didnt like the way they treated people in the office with the "we dont care about you we just want to get you tax fee" attitude so I did what i needed to do to become an authorized efile provider and went out on my own. That was 8 yrs ago and I feel joy in knowing I actually treat my clients the way any person would want to be treated, for one when spending their monies for services rendered and helping them with a task that must be done for the IRS. I think everyone in this community shares the same thoughts as I do as far as their clients are concerned and if it means taking an exam to continue providing that service for our clients, then I'm all in!! I just hope that once we get past the testing and so forth that we will all be recognized for that achievement by some certificate or letters we can put behind our names so the public will know that we went through to trials and tribulations to serve them like the CPA's, Attorney's and EA's....

Thank you and you all have been a wonderful audience!!! LOL!

Taxguy

[Lion EA]

The HRB fee is based on the forms, schedules, worksheets, lines, etc., in the return and not on the experience of the preparer. I worked for Block for years (although only 1 1/2 in a regular office; Premium the rest of the time) and charged whatever the computer calculated or the price list said or the Block hourly rate. I had one nice couple at about $139 for years. Gentleman is still with me (wife passed away a couple of years ago) at $140 now. But, I don't do any other returns that low and didn't even while still at Block. You can't tell how experienced your preparer is at Block by the price.

[Pacun]

The HRB fee is based on the forms, schedules, worksheets, lines, etc., in the return and not on the experience of the preparer. I worked for Block for years (although only 1 1/2 in a regular office; Premium the rest of the time) and charged whatever the computer calculated or the price list said or the Block hourly rate. I had one nice couple at about $139 for years. Gentleman is still with me (wife passed away a couple of years ago) at $140 now. But, I don't do any other returns that low and didn't even while still at Block. You can't tell how experienced your preparer is at Block by the price.

The cases that will not require many forms or lines go to the roockies and the price is below $400. If you bring a case like the warm up case I posted, it will not go to a roocky, it will go to an experienced preparer. That's the point that I try to make. Of course it will cost you much more than $400 to have difficult returns prepared. No one has challenged this: You can bring a person who doesn't know what a W-2 is, have him/her take the basic course, pass the exam and be an HRB preperer 4 months later. Trust me, the instructors are very experienced and knowledgeable but the company pays very little to preparers and that's why they have very inexperienced people working for them. With the salary HRB pays its preparers (and the non-compete agreement you sign), it is very hard to keep preparers after 2 years of experience. They teach their course every year everywhere because that's how they hire their employees.

[Lion EA]

The company line is that a new client gets an experienced preparer but a returning client can get a new preparer. They've researched that a returning client is more likely to forgive a problem and return again the next year, even if not to the same preparer. In practice, however, the experienced preparers can be totally filled with their "regular" clients and have no openings for new clients. The new preparer can get any client not requesting a specific preparer and be in waaaay over his head. You're relying on manager-types and the front desk to manage traffic flow, and the receptionists (called by a different title) are the least trained, least knowledgeable, etc.! A new client can find himself a good, experienced HRB preparer if he makes it clear that he has some more complex issues and what they are and is willing to wait, or better yet, to drop off his information and undergo the interview via telephone. Also, the Premium offices are not supposed to have any new preparers, but charge a premium over the usual fee. Sometimes an office can be filled with too many new preparers and not enough experienced ones, just a fluke of geography and hiring that season. Office managers are not necessarily seasoned preparers, so you can't always get good advice there, but they will know their people as the season progresses, know their strengths and weaknesses. A client can always speak up for himself, state that he's not comfortable with the preparer's level of skill with his return, and request another preparer. But, most probably just pick up and go to a different office or different franchise.

[taxguy057]

See that's the case and point... why should a client have to go through all of that hassle and inconvience to get their taxes done. They come to the #1 tax prep franchise in country and get passed around like a beer funnel until you just cant take it any more (b/c your tax preparer drunk) then you go to another office where 9 times out of 10 the same thing. You should feel at home and comfortable with your preparer. They should be in contact with you during the year if changes occur that might affect their taxes for that year. Most of time you come back and the preparer you had no longer works there and you have to start the bonding process all over again. I knw i wouldn't want to have to do that year after year...

[JRS]

See that's the case and point... why should a client have to go through all of that hassle and inconvience to get their taxes done. They come to the #1 tax prep franchise in country and get passed around like a beer funnel until you just cant take it any more (b/c your tax preparer drunk) then you go to another office where 9 times out of 10 the same thing. You should feel at home and comfortable with your preparer. They should be in contact with you during the year if changes occur that might affect their taxes for that year. Most of time you come back and the preparer you had no longer works there and you have to start the bonding process all over again. I knw i wouldn't want to have to do that year after year...

I think the average person/persons that go to HRB, doesn't really care as long as their taxes get done. To them it is just like going to DMV, it is something that has to be done and they know that can't do it themselves. They see all the "fluff" ads on TV and figure why not. Most, probably don't realize we exist.

Another point, as least to me, HRB prepared roughly 900,000 less returns over the 2008 season, but the average fee increased from $175 to $187.

A quote from Dow Jones News: "And Barrington Research analyst Alexander Paris said that the regulation's orders for employees are weaker than what H&R Block already imposes, meaning it could actually help the company by eliminating competition.

"They have a very professional tax preparation [system]," Paris said. "It's the moms and pops that don't and could be forced to close if they have to."

[jainen]

>>"It's the moms and pops that don't and could be forced to close if they have to." <<

I don't appreciate the financial press belittling independent tax preparers. In my observation, small shops generally have a far higher standard of quality than franchise operations.

There are some people--bookkeepers, mortgage brokers, and other professionals--who do a little tax work as a convenience for clients or supplemental income. They may give that up if they find annual update classes too much trouble or expense for three or four returns. A similar situation has happened with financial audits, which has become an expensive specialty for CPA's because of the requirements for training and peer review.

Companies like ATX will need to adapt to the loss of low-end preparers. Perhaps they will bundle qualifying training with the software, offer their spreadsheets as standalone modules, or add features to compete at higher prices. Anybody have some other guesses about how registration will change the tax industry?

[Tax Prep by Deb]

"I don't appreciate the financial press belittling independent tax preparers. In my observation, small shops generally have a far higher standard of quality than franchise operations."

Thanks Jainen.

I am a small one person operation, but I give everyone of my clients 100% of my attention. I've been accused of going to far, making their problems my problems, but when I first started out I wanted to build a good reputation of being honest and hard working for each of my clients. I started my first year with about 20 clients and today I have over 200. I've done very little advertising, I haven't needed to as my clients advertise for me!

Deb!

[taxguy057]

I'm the same with my clients too. I don't think we "mom&pops" will go out of biz... in this economy we cant afford too! We'll just have to knuckle up and fight for our businesses and comply with the new rules and all will be alright. All these years our clients have stayed with us and I don't think they will bail out on us now. If anything, those of us who stay in business after "the change" will probably grow our businesses more because people who are use to the small home feeling of not so flashy tax prep offices will seek us out b/c they will still want that when getting their taxes done.

[mcb39]

"I don't appreciate the financial press belittling independent tax preparers. In my observation, small shops generally have a far higher standard of quality than franchise operations."

Thanks Jainen.

I am a small one person operation, but I give everyone of my clients 100% of my attention. I've been accused of going to far, making their problems my problems, but when I first started out I wanted to build a good reputation of being honest and hard working for each of my clients. I started my first year with about 20 clients and today I have over 200. I've done very little advertising, I haven't needed to as my clients advertise for me!

Deb!

I echo Deb to a T. I also thank you, Jainen, for your support of us "little guys".

[kcjenkins]

In my experience, the single member office or small two or three person office has to be good or they don't make it. While the franchise can rely on national advertising to bring in business regardless of the quality of the employees, the small operation has to deliver good, competent service to survive for long.

[Tax Prep by Deb]

In my experience, the single member office or small two or three person office has to be good or they don't make it. While the franchise can rely on national advertising to bring in business regardless of the quality of the employees, the small operation has to deliver good, competent service to survive for long.

That makes me feel good! I've been doing this for 17 years and each year my business grows through referrals. I even had a lady call me who told me someone had referred me to her, and she couldn't even remember who it was!

Deb!