miorelli@pwa-b.UUCP (Bob Miorelli) (01/27/86)
It has been written that large tax prep firms are on the side of the IRS
and actually do their dirty work for them.
Quite the contrary -- At H&R Block we are out to have our clients
pay the lowest taxes possible -- legally, that is. Our avdertising
(being tried in about 1/3 of the markets nationwide) states that if
you can find that you should pay less tax than we figured then your
return is free!!! Come right in, show us, and you'll get your
refund. In addition the coporate policy is clear (paraphrasing
from the "Policy & Procedure Handbook":
1) Never ask for proof of deductions -- we are preparers, NOT auditors.
If the guy says he gave $3,000 to charity beleive him. Same for
medical, etc. One exception -- business use of auto. The IRS FORM
specifically asks if you have WRITTEN RECORDS. We must comply with the
law.
2) Never take an audit into consideration when preparing a return. Audits
are a normal part of our tax system and we will aid our clients in an
audit. If a deduction is a grey area -- take it. If there is
a disagreement between the tax courts' position and the official IRS
position -- use the more beneficial (usually the courts').
Obviously we must prepare a correct return from the information given.
We cannot comply with statements such as "I won $250 in the lottery, but
don't put it down" -- we HAVE to put it down, to not do so is fraud (a
$10,000 fine on me personally). We can't put down $5,000 in charitable
contributions if you say you only gave $500. We can't knowly do things
wrong. That's were you might come out better doing it yourself you can
lie or make honest mistakes in your favor and probably won't get caught.
Now, the large tax firms filing for you. This is a pilot program going on
in three cities. It only works if you are receiving a REFUND. The
tax prep firm will electronically file your return after the close of business
hours so you get your refund in about 2 weeks. A scaled-down tax form
must still be filed on paper. This is a test and fore runner of a
program that will allow people with home computers to file electrnically
from home. This is working to YOUR advantage -- it's a lot more work
for the tax prep firms.
Sorry this was sooooooo long -- thanks for listening.
--
-->BoB Miorelli, Pratt & Whitney Aircraft
also, H & R Block tax perparer and Instructor
pwa-b!miorelli