Tax Examiner Essence Tunley explains the importance of understanding standard deductibles
Updated: Aug 18
“I’ve been a Tax Examiner for over 8 years. It’s not uncommon for audits to occur on tax payers. Especially those who use the major name tax preparation companies. Sometimes the company’s software is not updated, the Tax preparer is not educated, or the preparer does not clearly understand tax law. Clients choose to NOT use their preparer as a third party designee, to speak on their behalf, because if an issue arises with the refund, you want to be the first to know. But, when the IRS begin to question documentation, the Client/Tax payer cannot properly answer them because they are oblivious to what form(s) the preparer actually submitted. However, in all cases those companies work like this:
Did you know there is a fee associated with each document a preparer submits to the IRS? Which is totally fine and legal, this is how the tax agency makes its money. Although, often times they will submit additional tax forms that you do not need. Moreover they will process forms that has no benefit to YOUR refund. Most preparers are paid by commission and this practice will, indeed, benefit the preparer and the company, NOT you. For instance, has a preparer asked you “Do you pay any union dues or have any other job related expenses?” or “Is there any charity organizations that you donate to?”. I’m sure you’ve said ‘…Yes.’… and gave your preparer the amount to report. Here’s the secret: If that amount does not exceed your ‘standard deduction’ , those contributions will not impact your refund in any way. The preparer knows this but the client does not. Just that quickly, they are ready to submit a document on your behalf to the IRS that will be disregarded. The company just made an additional $25, or whatever amount is set, off you and every other client that does not know what or how much their standard deduction is. The Client leaves happy because your refund is 3K+ and you only paid the company $300 or $400+. But is that fair pricing??
At Brown Tax Services, LLC this is NOT the practice. The professional preparers are educated and are up-to-date on all tax laws. Friendly, honest service. These are the professionals to have on your side. With all the changes going on, having the proper Tax Preparer is the same as having a great Lawyer. They speak the language of the Internal Revenue Services, understand the terminology, know what deductions will benefit you and your family, they will work to maximize your refund, ensure accuracy, and timely filing. Brown Tax Service, LLC works for interest of the people it serves. If you are already or have been thinking about preparing your own taxes with an online service, GREAT! Before you do, ask yourself two important questions: Am I truly up-to-date on the current year tax law? Am I ready to deal with IRS directly?”