Quote:
Originally Posted by gusmahler
How did the tax preparer gig work out for you? I know you posted that the hours were extreme, especially in May. Besides that, would you recommend such a job? Is the money decent?
I missed this one along the way.
I'm glad I did it, for reasons I'll discuss below. But I would recommend it to no one.
I earned my Enrolled Agent qualification, which basically means the IRS allows me to represent clients at audit; that required passing some pretty brutal tests, which in turn required that I learn a ****-ton about income tax. Couple that knowledge with my natural abilities and proclivities, and I'm pretty damned good at it, for someone with as little experience as I (and overall, I think).
With that as background, we proceed to working for H&R Block, which I think is probably typical of, or somewhat above average for, the storefront tax prep industry. And it turns out, unsurprisingly I suppose, that that industry is populated by idiots and slimeballs. More of the former than the latter, but on the other hand it's the latter who climb the ladder and design the structures.
In the office in which I first worked, a majority of the preparers were just plain too dumb to figure out complex situations, and not trained in them well enough that they didn't need to do work them out. And that was fine with Block. To illustrate the corporate attitude: every year, a certain number of hours (I think it was around a dozen) of training in the latest marketing methods are required of every tax pro. You know what's
not required? Training in the changes in the tax laws from the previous year. Think about that.
Now, take those incompetent people, but give them a really good software setup and good tech support. What do you get? Strangely, perhaps, what you get is people who can often do taxes pretty well, just because of the system. In fact, almost everyone will do better going to a firm like Block than doing his taxes on his own, and even though I refuse to work for them again I urge people to go there for their own benefit.
The other problem says more about the state of our tax system than anything else, I think: I learned in my year there that most people cheat. I suppose I knew that, but I have now seen it. The only people who don't cheat are those who can't — nothing but W–2 wages, no deductible expenses that can be fudged. Everyone with rental property is cheating. Everyone with any cash income is underreporting it. People with their own businesses are fudging the numbers, always. And everyone on EIC (earned income credit — it's where we hid welfare, when Reagan said he was doing away with welfare but realized he couldn't really do that) is screwing around. Married people who've moved apart are filing as head of household (which they usually can't). And so on, and so on, and so on.
And this is fine with Block too. We were specifically instructed not to delve into too much detail unless it could help lower someone's tax bill — unless the client flat out told us he was lying, we couldn't do anything about it. No matter how wolfy, the client was assumed to be right. (EIC was an exception, but only because the IRS was cracking down on EIC fraud.)
I had a lot of down time in my office until crunch time, and I wound up reading through most of the returns that all the other pros in the office did. On about a third, I found facial errors — things that I could see, without knowing the taxpayer or seeing the underlying documentation, were wrong. I reported these... and got shut out of my work, because more of the errors (both directions) were made by my office manager than anyone else. And I reported the office manager (including two incidents of out-and-out fraud by him)... and nothing happened.
By the way, those of you who are sure your CPAs do better — most of them don't. I had occasion to see perhaps twenty returns prepared by CPAs, both independent and from big name firms, costing up to $12,000 to prepare. Not a single one was correct. The CPAs seem to err much more away from the obvious cheating (probably just hiding it better), but they miss legal opportunities on just about every reasonably complex return. There's a reason for this, too — the way those firms work, they tend not to spend a lot of time talking with the client, and it's in those talks that some opportunities come to light.
So what should you do as a taxpayer? First, don't do your own taxes (certainly not without running them by someone else). You're smart, TurboTax seems pretty good... but if your taxes are at all complicated, there's a decent chance you'll miss something. (TurboTax doesn't catch everything, btw, even if you know how to use it perfectly — and you don't.) Second, have two different professionals look at it. If you're having a CPA do it, take the resulting return to Block (or whoever) and have them look it over; for a smallish fee, you'll find out whether anything was missed. Or go to two or three different offices of storefront places and have them each do a workup — you don't have to pay unless you actually file the return they prepare for you. (It sucks for the preparer when you don't, but that's part of the deal.) And if you want, maybe even have me look at it — I'll do it informally for free (which is dumb for me but I like doing it), and if there's big work to be done, we can maybe work something out.
This reminds me, I promised one POGger I'd look over his stuff; my bad for not having gotten to it yet. Sorry.
Last edited by atakdog; 02-11-2011 at 12:34 PM.