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Tax Season Ads - Don't Be Taken In


Have you seen that ad for tax preparation software? You know the one I mean. It says that anyone, even a caveman - no, wait, that is a different commercial - even a "math impaired" or an "unorganized" individual can prepare his or her own income tax return by simply using the software package.

This is pure bull! No tax preparation software is a substitute for knowledge of the tax code. And no tax preparation software is a substitute for the services of a trained tax professional.

As with any software program the rule is "garbage in - garbage out". If you don't know how to enter the information, or what information to enter, you will not get the best, or even the correct, answer.

As a professional tax preparer I attend several tax preparation workshops, seminars, conferences and conventions during the year. I am constantly hearing instructors and participants alike discuss the problems with their tax preparation software, the answer often being that one has to override the system and "force" the correct entry.

IRS statistics indicate that taxpayers using do-it-yourself tax software spend an average of between 6 and 10+ hours longer preparing their tax returns (depending on the number of worksheets and schedules) than preparers who did manual calculations. Further, the IRS estimates that do-it-yourself software users spend an average of 10 to over 20 hours longer than a tax preparer, again depending on complexity.

H+R Block has sued the company that produces the tax software in the above mentioned ad, and has asked a federal judge to shut down the advertising campaign.

The bottom line is - if you don't know what you are doing do not rely on a tax preparation software package to make up for your lack of knowledge. Using a tax professional will save you time, aggravation and money!

Speaking of tax season ads, the commercials for the Henry + Richard and Jackson Hewitt fast food tax preparation chains continue to emphasize the fact that you can walk into their office and walk out with a check, and not that they can prepare your return competently and accurately so that you pay the absolute least amount of tax possible (to be fair, H+R does have an ad that tells you they will pay the interest and penalty for their mistakes).

These chains are pushing Refund Anticipation Loans (RALs), which are very profitable. While a great thing for Henry + Richard and Jackson Hewitt, a Refund Anticipation Loan is NOT a good thing for the individual taxpayer. It is nothing more than a short-term loan at a usurious interest rate. The interest rate on some of these RALs is triple-digit, similar to a loan shark. A recent Washington State Journal article reported that the interest rate could be as high as 521%, with more than 10% of the refund going to fees!

Henry + Richard have gotten into a lot of legal trouble with their RAL programs. In December H+R Block reached a $62.5 Million settlement with an estimated 8 Million customers in more than two dozen states over Refund Anticipation Loans. But they continue to aggressively promote RALs during the tax season because of the huge profits.

Unfortunately, Refund Anticipation Loans appeal most to, and take unfair advantage of, the working poor and other low-income taxpayers who need every penny of their tax refund.

If you need your refund quickly use direct deposit. With direct deposit your refund should be deposited into your bank account within 10 days. If that is not good enough investigate other methods of short-term borrowing. Even a cash advance from a credit card is "more better" than a Refund Anticipation Loan, providing you pay back the advance as soon as the refund arrives.

copyright (c) 2006 by Robert D Flach LLC

Robert D Flach is a tax professional with 34 tax seasons of experience preparing 1040s for individuals in all walks of life. He writes and publishes the free monthly online newsletter STUFF AND SUCH (http://rdftaxpro.tripod.com/stuffandsuch) and several other websites, as well as several print newsletters and reports on tax planning and preparation. For more information on his websites go to http://rdftaxpro.tripod.com/websites

Find the Right Service to Prepare Your Taxes


It is possible to save money on your tax preparation fees by doing some advance preparation of your own. Make sure that you organize your paperwork and receipts to save time and ensure nothing is missed. It is still important to review your tax return carefully before you file it, even if you have used a tax preparation specialist. Firstly, it is worth deciding if you really do need a tax preparation service or if you could benefit just as much from a tax software program. Tax preparation specialists can be expensive to use if you only have a basic tax return with no special circumstances. Tax software can give you the help you need in this case for a lot less money. Most people don’t like doing their taxes and that is where tax preparation services come into their own. Using a tax preparation service is the ideal way to get your taxes done, especially if you have fairly complicated tax returns. The tax preparation service keeps ahead of all the developments in taxes so that they can deal with any issues. However, it is important that you choose your tax preparation service carefully to ensure that you get the one who can do the best job for you.

If you have a more involved tax return then you are going to need a specialist tax preparer rather than a generic service. These are likely to be expensive because they are formally qualified in dealing with tax return issues. Some tax preparation specialists are public accountants or CPAs but the best choice is an enrolled agent. Enrolled agents are tax preparation specialists licensed by the federal government but, more importantly, they are also able to represent their client if there is a problem with their tax return. There are a number of large groups of tax preparation services. These are the perfect choice for filing tax returns that are fairly complicated. The tax preparation services are usually the cheapest because of the numbers of tax preparers. The only issue for some people using one of these larger tax preparation services is that you cannot specify to have the same person working on your tax returns from one year to the next.

It is important to consider the style of the tax preparation specialist that you hire. For example, if you are keen to push the limit on your deductions aggressively then you don’t want a conservative tax preparer. Find one who has the same philosophy as you do, or as close to it as possible. All tax preparation specialists should be able to provide references for you to check. One of the main issues that you want to confirm is the speed of response that they have given their past clients. Remember that if a tax preparation specialist delays the filing of your tax return then you are liable for the fines and charges.

Learn more about Tax Software and gain access to a wide variety of resources at http://www.alltaxsoftware.info You'll find articles, resources and links to helpful sites.

Property Tax Attorneys


Property tax is the tax that property owners must pay for their land. Property to be taxed is appraised for its value, and the property tax is calculated on that basis. Disputes arise when the property is seen to have been wrongly appraised, or the ownership and tax liability is under contention. It is a property tax attorney’s job to resolve such disputes with the tax authorities and represent the owner in case of legal proceedings being initiated.

A property tax attorney is experienced in the matter of tax appraisals and can advise you if the property appraisal is seen to be arbitrary or discriminatory. This can save you from paying excess tax that was calculated on a ‘flawed’ basis. He can guide you through the laws relating to exemptions, rebates, tax laws in case of inheritance, tenancy, lease agreements and other kinds of issues related to ownership of property.

Sometimes disputes might arise between joint owners, or the owners and an external party over tax liabilities. The job of the property tax attorney is to negotiate such disputes on behalf of his client.

Property tax attorneys have clients ranging from large multinational companies to industrial units, supermarket chains, office complexes, residential complexes, and small stores. Even unique cases of property tax or property ownership are handled by expert property tax lawyers.

Most new property owners, senior citizens, and certain other sections of people are not aware that they qualify for tax rebates. A property tax attorney looks at all tax laws to see how they can be used to get rebates and exemptions for a property owner.

Property tax laws are concerned with laws relating to inheritance and ownership. A property tax attorney must also be knowledgeable about property inheritance laws for spouses, and non US citizens. If property is of considerable value, then it is always a good idea to engage a property tax attorney who can advise on issues relating to taxation.

Tax Attorneys provides detailed information about tax attorneys, income tax attorneys, international tax attorneys and more. Tax Attorneys is affiliated with Tax Lien Certificates.