| “Arizona’s Dirty Little Tax Secret” November 8th 2010 Sure your contractor has a license and even your barber has a license. But did you know that the person handling your most private of information does not need a license or for that matter any practical knowledge to do your TAXES. The person that you meet with every year and hash out your biggest yearly bill might not be the professional you thought they were. Here in Arizona there are no requirements for someone to open a tax office and prepare taxes. Who are these people and why should you care. Most are honest people that come from accounting back ground or have taking the steps to take 8 to 10 week tax courses offered by many local and national franchise offices. But some are not even that knowledgeable and some are even crime rings that set up shop to “Farm” or “Harvest” unaware consumers for the golden ticket of ID theft, your social security number. “It not only effects the original taxpayer but it now is going on to effect the next generation (children) who have no credit history and give these crooks a clean slate to work from”, Explains Kerry Freeman Enrolled Agent. “Identity thief here in Arizona is one of the largest crimes and we are leading the way in the country”. What should you be looking for when shopping for your current or next tax professional? First, what are their credentials? Starting in 2011 all paid preparers should be registered with IRS and be providing a Ptin (Preparer Tax Identification Number) and signing your tax returns. The IRS is undergoing a large program to find these paid preparers and will be starting to test and register all preparers in 2011. At this time only Attorneys, CPA’s and Enrolled Agents (EA’S) are able to go before the IRS. These professionals also carry continuing Education and hold high standards of Ethics before the IRS. Second, how do they handle your private information? Do you see Shedders? Locked file cabinets? Do they disclose how they will use your information be side doing your taxes? Since 1999 every tax preparer has fell under the Gramm-Leach-Bliley Act that has required that every preparer provide each consumer with a privacy notice at the time the consumer relationship is established and annually thereafter. The privacy notice must explain the information collected about the consumer, where that information is shared, how that information is used, and how that information is protected. Finally, what is there tax Knowledge? When and where do they get their update classes or required continuing education from? “As an Enrolled Agent and a members of the National Association of Enrolled Agents (www.NAEA.ORG) I am required to take 30 hours a year of Federal income tax updates and classes” tells Kerry Freeman, Enrolled agent. “ I have found that on average I take over 60 hours a year from many great speakers in the tax industry including the IRS, NAEA and local Society chapters”. Taxes are complex and this article is not debating reform or Flat tax or Fair tax or any other new idea. But as consumers we all want qualified professionals doing the job that we hire them for. Just remember that a bad hair cut form an licensed barbers will only last a week, A bad tax return from a non licensed prepare can last a life time. Writer Kerry Freeman EA is a registered Tax professional with the IRS. He has been past President of the Central Arizona Chapter of EA’s and in 2009 received his NTPI Fellowship after completing a three year course in tax representation. Mr. Freeman is a second generation EA, makes his current practice in Anthem Arizona after leaving the family practice in California in 2005. They are doing it again! September 30, 2010 Anthem’s Freeman Income Tax Service (FITS) and American Family Insurance(AM FAM) are together moving their respective practices to a new location at 39510 N Daisy Mountain Rd #168 in the Fry’s shopping center. Kerry Freeman and John Kovach made news two years ago with sharing retail office space to help overcome the difficult economic problems that have hurt so many businesses here and elsewhere.“It is a great partnership and our clients like the way we complement each other’s businesses”, explains Kerry Freeman E.A. , and owner of FITS. “We each are experts in our own fields and are here to take care of the needs of Anthem”. Together both Kerry and John have had successful practices here in Anthem for over three years before sharing their location on Anthem Way. That was two years ago and they still find benefits with the shared retail space. The new location will afford both businesses that all important foot traffic that can keep a business running during hard economic times. When they came to the end of their current lease and the opportunity to move presented its self, John and Kerry took no time to move to this high traffic location. As with home prices, the corporate retail side has also taken a hit and with lease prices coming down it just made good business sense to improve both the office space and technologies along with driving new traffic to the front door. The opening date is slated for October 1st with a month long Re-Grand opening to let the neighbors of Anthem know of their new location. On Tuesday the 12th of October the networking group “ Preferred Businesses of Anthem” (PBA) will have its weekly networking meeting hosted by FITS on that day at 7: 00AM. Guests are encouraged to come and share their businesses and find out more about networking. Special speaker Steve Moss of Future Financial will be speaking to the group. Everyone is welcome to come by and see the new location and celebrate that business is getting better and growth is coming back to Anthem. John and Kerry are looking forward to seeing old friends and to show off the new office to new friends. You can reach John Kovach at 623-551-7900 and Kerry Freeman at 623-518-2157. Eight Tips to Help You Choose a Tax Preparer January 14th, 2009 The IRS urges people to use care and caution when choosing a tax preparer. Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm. Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients. Therefore, it’s important to find a qualified tax professional. The following tips will help you choose a preparer who will offer the best service for your tax preparation needs. 1.Check the person’s qualifications Ask if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics. Kerry Freeman, EA is a proud member of the National Association of Enrolled Agents, as well as a member of the Arizona state society and the local Phoenix West Chapter of Enrolled Agents. 2.Check on the preparer’s history Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Mr. Freeman and Freeman Income Tax Service(FITS) has no negative reports with the BBB or any of it's Professional Organizations 3.Find out about their service fees Avoid preparers that base their fee on a percentage of the amount of your refund or those who claim they can obtain larger refunds than other preparers. FITS Charges for the Forms used to prepare and file a complete tax return. 4.Make sure the tax preparer is accessible Make sure you will be able to contact the tax preparer after the return has been filed, even after April 15, in case questions arise. FITS is open all year to handle off season notices and letters. 5.Provide all records and receipts needed to prepare your return Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. During your interview with FITS, we collect all needed information to prepare your tax return. Most interview last 30 minutes and some times additional information might need to be gathered in order to prepare the very best tax return. 6.Never sign a blank return Avoid tax preparers that ask you to sign a blank tax form. Signing accrues at a closing interview, Where the staff of FITS will review the tax return with the taxpayer before asking for signatures that might be required for e-Filing. 7.Review the entire return before signing it Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it. Part of the closing interveiw will be allowing you time to ask questions and review your tax return. 8.Make sure the preparer signs the form A paid preparer must sign the return as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return. Every Taxpayer that leaves FITS will leave with a copy (Either paper or electronic) of their tax return. We are proud to sign your tax return and that is why we say that "Fits is the only name that belongs on the bottom of your tax return. You can contact Mr. Freeman or his staff at 623-518-2157. Higher Standards to Boost Protections and Service for Taxpayers, Increase Confidence in System, Yield Greater Compliance with Tax Laws IR-2010-1, Jan. 4, 2010 WASHINGTON –– The Internal Revenue Service kicked off the 2010 tax filing season today by issuing the results of a landmark six-month study that proposes new registration, testing and continuing education of tax return preparers. With more than 80 percent of American households using a tax preparer or tax software to help them prepare and file their taxes, higher standards for the tax preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term. To bring immediate help to taxpayers this filing season, the IRS also announced a sweeping new effort to reach tax return preparers with enforcement and education. As part of the outreach effort, the IRS is providing tips to taxpayers to ensure they are working with a reputable tax return preparer. "As tax season begins, most Americans will turn to tax return preparers to help with one of their biggest financial transactions of the year. The decisions announced today represent a monumental shift in the way the IRS will oversee tax preparers," said IRS Commissioner Doug Shulman. "Our proposals will help ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of the nation's tax system. In addition, we are taking immediate action to step up oversight of tax preparers this filing season.” Based on the results of the Return Preparer Review released today, the IRS recommends a number of steps that it plans to implement for future filing seasons, including: Requiring all paid tax return preparers who must sign a federal tax return to register with the IRS and obtain a preparer tax identification number (PTIN). These preparers will be subject to a limited tax compliance check to ensure they have filed federal personal, employment and business tax returns and that the tax due on those returns has been paid. Requiring competency tests for all paid tax return preparers except attorneys, certified public accountants (CPAs) and enrolled agents who are active and in good standing with their respective licensing agencies. Requiring ongoing continuing professional education for all paid tax return preparers except attorneys, CPAs, enrolled agents and others who are already subject to continuing education requirements. Extending the ethical rules found in Treasury Department Circular 230 -- which currently only apply to attorneys, CPAs and enrolled agents who practice before the IRS -- to all paid preparers. This expansion would allow the IRS to suspend or otherwise discipline tax return preparers who engage in unethical or disreputable conduct. Other measures the IRS anticipates taking are highlighted in the full report. Currently, anyone may prepare a federal tax return for anyone else and charge a fee. While some preparers are currently licensed by their states or are enrolled to practice before the IRS, many do not have to meet any government or professionally mandated competency requirements before preparing a federal tax return for a fee. First Step: Letters to 10,000 Preparers The initiatives announced today will take several years to fully implement and will not be in effect for the current 2010 tax season. In the meantime, the IRS is taking immediate action to step up oversight of preparers for the 2010 filing season. Beginning this week, the IRS is sending letters to approximately 10,000 paid tax return preparers nationwide. These preparers are among those with large volumes of specific tax returns where the IRS typically sees frequent errors. The letters are intended to remind preparers to be vigilant in areas where the errors are frequently found, including Schedule C income and expenses, Schedule A deductions, the Earned Income Tax Credit and the First Time Homebuyer Credit. Thousands of the preparers who receive these letters will also be visited by IRS Revenue Agents in the coming weeks to discuss their obligations and responsibilities to prepare accurate tax returns. This is part of a broader initiative by the IRS to step up its efforts to ensure paid tax return preparers are assisting clients appropriately. Separately, the IRS will be conducting other compliance and education visits with return preparers on a variety of issues. In addition, the IRS will more widely use investigative tools during this filing season aimed at determining tax return preparer non-compliance. One of those tools will include visits to return preparers by IRS agents posing as a taxpayer. During this effort, the IRS will continue to work closely with the Department of Justice to pursue civil or criminal action as appropriate. Steps Taxpayers Can Take Now to Find a Preparer In addition to the stepped-up oversight of preparers, Shulman also announced a new outreach effort to help make sure taxpayers choose a reputable preparer this filing season. That’s particularly important because taxpayers are legally responsible for what is on their tax returns -- even if those returns are prepared by someone else. “Taxpayers should protect themselves from unscrupulous preparers,” Shulman said. “There are some simple steps people can take to choose a reputable tax preparer.” Most tax return preparers are professional, honest and provide excellent service to their clients. Shulman offered the following points for taxpayers to keep in mind when selecting a tax return preparer: Be wary of tax preparers who claim they can obtain larger refunds than others. Avoid tax preparers who base their fees on a percentage of the refund. Use a reputable tax professional who signs the tax return and provides a copy. Consider whether the individual or firm will be around months or years after the return has been filed to answer questions about the preparation of the tax return. Check the person’s credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared. Find out if the return preparer is affiliated with a professional organization that provides its members with continuing education and other resources and holds them to a code of ethics. More information about choosing a tax return preparer and avoiding fraud can be found in IRS Fact Sheet 2010-03, How to Choose a Tax Preparer and Avoid Tax Fraud. To learn more about EA’s visit, WWW.AZTAXPROS.ORG. Or look in the telephone yellow pages under "tax preparation". You can also call the Arizona Society of Enrolled Agents toll free referral line at 1- 866-AZTAXPR(OS) (1-866-298-2977). Mr. Freeman can be reached by calling 623-518-2157 |
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