IT'S ALL ABOUT CHOICE

A recent IRS article talked of restricting tax preparers such as H&R Block Inc and Jackson Hewitt Tax Service Inc from offering refund loans to customers because doing so could encourage fraud.
If adopted, the IRS proposal would limit tax preparers’ ability to provide customers’ tax return information to lenders that provide the tax refund loan.
The article goes on to say, “that because the loans are often limited to the size of refunds, unscrupulous tax preparers might be tempted to inflate refunds to collect higher fees.” “Loan fees might create an incentive for preparers not to comply with due diligence requirements to ensure that claims for earned income tax credits are accurate.”
It’s all about choice. Taxpayers come into our office with thoughts of getting refund money as quickly as they can without regard to what it’s going to cost them.
I talk to my clients, try to get as much information out of them as possible to help lower their tax liability under the guidelines of due diligence. When it comes time to go over the refund options, I make an effort to encourage them to wait two weeks for their refunds. I explain all of the options, but in the end the taxpayer has the final decision on how they will receive their refund.
I find it very disheartening that in the article tax preparers are portrayed as the ones that would inflate refund claims to collect higher fees .
You must know:
1. That the banks offer the loans
2. The tax services provides the product
3. The tax preparers explain the refund options to the taxpayers
4. Taxpayers make the final decision whether to accept or not.

Am I the only one that is upset by this article?
P. Harker, Tax Advisor 4/Tax Preparation

http://www.effectur.com/