The United States has a complex tax system. Some politicians have even declared that a “flat tax” would work in maintaining a consistent, marginal tax.

In the meantime, it is up to us to do our own taxes. Taxes to me, is another service that is provided that you can probably do yourself. Most tax preparers have software where they can submit the same, simple information you can enter into tax preparation platforms like Turbo Tax or Tax Act  on your own.

Over the last decade, more and more individuals have been either doing their own taxes or having a friend do them (In 2010, professional tax preparers handled only about 60% of those returns)…. and staying away from all the price gouging that companies like HR Block and Jackson Hewitt impose, particularly if you are in financial need and require a rapid return. (Note: as of last year, Rapid Refunds were restricted by federal regulators at HR Block and capped at $1500 for Jackson Hewitt.)

My wife, who is not a certified tax professional, often does the tax returns for about 10-15 of her co-workers and various family members. Does this appear to be the trend now?

While the Mrs. seems to be doing a good job, what are some red flags you should look for when a tax preparer is referred to you? Just because they appear confident and ready to earn your business, should you let them?

5 Red Flags To Look For: Think Anyone Can Prepare Your Taxes? Think Again!

1) Lack Of Availability/Lack Of Integrity — Giving one access to your financial documents and exposing intimate details about your life, family, income, expenses, and deductions is not something you should take lightly. Take some time to meet this person in person and learn about them. You want to know about their background, experience… plus, you want to know what level of support you can expect if something goes wrong now… and 5 years from now!

If I’ve given documents to my tax preparer, I expect, he/she will have questions, need more clarification, or may even request supporting documentation. When that’s not the case, and when the preparer is anxious to rush to a filing, I’d worry!

Another concern is when the tax preparer wants to remain anonymous and your friend who recommended them wants to pick up your W-2′s and deliver them on your behalf.

Also, be weary if someone who works at a tax firm is scraping work on the side for their own benefit  and either misrepresenting their company or misrepresenting what their role is.

2) Big Promises — The reality is many Americans actually end up owing money. If you haven’t evaluated my financial situation, how can you promise… anything?

This type of approach is insulting and a ploy to take advantage of people’s unfortunate naivety.

Sure, anyone can promise a BIG refund if they grossly manipulate the numbers, but the IRS will surely target these miscalculations and audit you!

3) Credentials — Oh, they don’t have any? May I have some references? I want to speak with clients you have worked with in the past.

You can avoid potentially serious issues by checking if your tax preparer has the correct identification. The IRS recently began assigning Preparer Tax Identification Numbers (PTINs), and if your tax specialist can’t provide one, you may be courting trouble by using an unlicensed preparer.

4) My Refund Is In YOUR Checking Account?  — If a tax preparer insists that any refund check be made out to his or her company, or deposited directly into a bank account without your name on it, that’s a huge red flag that your refund may not find you when all is said and done.

5) Your Fee Is What Percentage Of My Return? — Reputable tax-prep firms charge a flat fee for their services, based on the size and scope of your tax return. If a preparer bases your fee on a percentage of your tax refund, that should be an immediate deal-breaker. That gives the preparer incentive to pump up your refund by any means possible, which can invite some mishandling of your financial information.

Bottom Line 

Just because someone has done something for a long time, does not mean they do it well.

In the end,  including claiming too many exemptions, failing to claim allowable tax credits and missing tax deductions that could have saved you money is YOUR responsibility. Your good name on the line (literally), it’s best to thoroughly review any tax specialist you’re thinking of bringing aboard.

People take a lot for granted when they are buying a home, a car, giving their money to a Financial Adviser, or getting their taxes done. Don’t be that person.

Source Blogger says: Be Careful!

Back in the 1990′s “No-haggle pricing” was a concept that Saturn created, here in the US.

When I was younger, and looking at starting a career in auto sales, Saturn was the place. Why? Because potentially, as a new salesman, I didn’t need to have a lot of experience to sell cars. Car buyers looked at the window, saw the price, and signed on the dotted line. I was sure of at least some type of consistency in the markup.

Well, that didn’t work for Saturn or for the parent company, General Motors, as you will read later on in the article. But, in all fairness, “no-haggle pricing was not the primary culprit.

As a consumer, you have to be suspicious about a concept that is so loved by the auto industry.

“No-Haggle Car Pricing”

The sticker price you see on the vehicle is the actual transaction price of the vehicle. The dealer or the seller is not prepared or authorized to negotiate from that price. The caveat being that the sticker price, of the MSRP, needs to be set at something that is very fair and reflects true market demand for that vehicle. So if you’re going to go into a no-haggle dealership, you need to expect and hopefully agree that the MSRP price is close to what is a fair price for the vehicle.

If the vehicle has a lot of add-on fees and additional market adjustment fees added on, then it’s not a no-haggle dealership. If you’re the type of consumer that is fearful of the dealership environment, thinks it’s a hassle and don’t like to negotiate, and just want to get the new car and get out, then a no-haggle environment is probably best for you. Essentially, the MSRP is your pre-agreed transaction price of the vehicle. So you come in, see the price, you like it, that’s what you buy and off you go.

The Dealership: My Way Or The Highway?!

But how “no-haggle” is no-haggle pricing? Does it mean a buyer is guaranteed to pay the same price as the next person who walks through the door? Will no-haggle dealerships refuse to shave a few hundred dollars from the deal rather than lose a sale?

Perhaps the biggest question is whether most consumers really want no-haggle pricing. Buyers may be so conditioned to negotiate a deal that they feel they are leaving money on the table in a no-haggle dealership.

The jury is a long way from a verdict on no-haggle pricing, but there are some things today’s new car shoppers should know.

First, dealers — even the much-heralded Saturn dealers — were not absolutely bound to avoid haggling.

Federal law says that manufacturers can’t dictate pricing to dealers. That’s where the phrase manufacturer’s suggested retail price, or MSRP, comes from.

Saturn

The issue came up over how some dealers handled the debut of the hot-selling Saturn Sky Roadster. With more buyers than vehicles in stock, some dealers jacked up the price above the MSRP and then bargained from there — not exactly a no-haggle attitude.

A representative for Saturn admitted there was little that GM could do to discourage such practices, aside from counseling the offending dealers that their attitude could limit future sales.

Even if a dealership adheres to a one-price-fits-all policy, there are other ways in which a buyer can wind up paying more — or less — than another customer.

The value of a trade-in, the cost of financing and prices for extended warranties can all pad the price of that no-haggle vehicle. So buyers need to keep their eyes on the bottom line and not be dazzled by the low-pressure sales approach over the posted price of the vehicle. Otherwise, they could end up giving away hundreds or even thousands of dollars in other parts of the purchase process.

Who Likes “No-Haggle” Pricing?

Then there’s the issue of whether significant numbers of buyers will ever be comfortable with no-haggle pricing.

After a century of buying new cars through an adversarial process, people are understandably distrustful of deals where they have no apparent leverage.

And don’t forget the ego factor. Many buyers love to boast they “bargained” the dealer down to an incredibly low price, even claiming they bought the car for less than the dealer paid. Of course, no dealer can sell cars at a true loss, but that doesn’t stop the bragging.

The buyers who unquestionably benefit from no-haggle pricing are those who have an abject fear of the car-buying process. Even if those folks give up some extra dollars, no-haggle is probably worth the cost.