Sunday, January 24, 2010

Why I would do my own taxes.

Yesterday I happened to go to 2 different tax professionals (????) from well known tax services and I was surprised by lack of knowledge of these so called experts. Of all the people working there only one was certified to represent you for IRS audit rest are those who have done some crash course in 'taxes 101' and following the software to fill up the forms.
My first professional shocked me with his first few words like "I did not prepare taxes for some years lately and I will need some time" and "I am not sure how first time home buyer credit works". I was suggested to efile today (and pay him) federal and later file an amendment (again pay them) for tax credit. And worst part he was expecting me to pay for that visit too even if I don't file anything. I was out of there.
Second professional was amazing too. I was his first client ever. Up till now he was doing some test cases. Obviously he had just graduated from 'taxes 101'. He was quite old (no offense to oldies) and was not able to read correctly. At one point he made me think that he has never filed taxes for himself. Forget about others. I myself had to punch in my W2 in his software. He was confused how to 'go back' or 'refresh'. He was not sure if I will qualify for certain deductions. After couple of hitches and glitches he was able to (some how) finish off the forms and tell me how much will I get refund. Again I made something up and got the 'F' out of there.
I am surprised how these people operate. Most surprising is the claim they make that will pay 5000$ if there is any mistake from their side. If I had used this guy I would have been 5000$ richer at expense of IRS audit.
Even couple of years back I had similar experience with another tax service. Ask these tax professional about form W7, procedure for ITIN for some one who doesn't have SSN (still legal residents), Procedure for POA for taxes, Partial taxes outside US where business calender year is not same as US, Expenses outside of US, how to claim dependents who satisfy residency criteria / test but no SSN (again legal guest (parents)). I am at a point where I am thinking I can give tax advices to others and make some money. :)

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