Wednesday, May 10, 2006

More Woes for America’s Tax Preparation Firms????

Here is a little information for all of you out there that have used or plan to use a tax preparation firm like H&R Block, Jackson Hewitt, or Liberty Tax that may make you want to question the accuracy of their services. In my NSA Special Alert e-mail I just received, it appears that the Senate Finance Committee chairman Charles Grassley (R-IA) is inquiring into the business models, training, and compensation of the major tax preparation firms. This is due to the recent release of the General Accounting Office’s (GAO) report that uncovered dishonesty, inaccurate information, and poor service provided by tax preparation firms.

This is all in the midst of the potential passing of the current legislation, the Taxpayer Protection and Assistance Act (S.832) which would require the registration of all non Circular 230 paid tax preparers (Non CPA’s, EA’s and public accountants). This is something that the average consumer must keep in mind when relying on a tax preparation firm to prepare and file their taxes. Many times these tax franchises are owned and operated by CPA’s, EA’s, and other Circular 230 tax professionals, but sometimes the staffs are not as fully trained. Be sure to do your due diligence when selecting a tax preparation firm and remember that the tax responsibility ALWAYS falls upon the tax payer.

To your prosperity

Brian N. Stovall
The Brico Group, Inc.
www.thebricogroup.com
bstovall@thebricogroup.com
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