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Question: How does your service stand out?
Answer: I have twenty nine years of experience working with individual 1040 income tax returns. However in 2018, the IRS implemented the Tax Cuts and Jobs Tax (TCJT); a major tax legislation that changed or eliminated so many individuals and business tax laws. I research tax issues on a daily basis to keep up. I'm always looking for ways to maximize deductions to reduce my client's tax debt.
Question: What is your greatest strength?
Answer: I am self-motivated and self-disciplined. I love my job and I like working with all types of individuals. I also love helping people with their tax problems when things seem hopeless. It is an awesome feeling when someone says, "Thank you... I don't know what I would have done if you didn't help me."
Question: Do you have a standard pricing system for your service?
Answer: I charge $225.00 for a Form 1040 and $200.00 for a Form 1040-X / Amended Tax Return. Depending on the complexity, I charge between $10.00 to $30.00 for additional schedules. I do not charge a separate fee for electronically filing your tax return. Right now... I am preparing current and prior income tax returns. And, I offer a Refund Transfer. This allows the tax prep fee to be taken out of your refund. I accept PayPal via email (secure online credit and debit cards processing) and cash payments with all due upfront.
Question: What is your typical process for working with a new customer?
Answer: Typically... I have a initial phone consultation where we discuss the unique tax situation. Then... during an initial meeting or via email, I collect payment and gather all the tax documents needed to prepare the tax return. If needed, I contact the taxpayer daily to keep them involved in the tax preparation process. I may email updates on the process and then I present two copies of each tax return at our final meeting or email a PDF copy of the tax return to the taxpayer.
Question: What do you enjoy about the work you do?
Answer: I have over twenty nine years of experience working with income taxes but I do not know everything. The IRS Tax Code is vast and everyday you have the opportunity of learning something new when you do tax research. I also get the opportunity to meet people from every walk of life.
Question: What questions do customers most commonly ask you? What's your answer?
Answer: People are always eager to know how huge of a refund they are going to receive. I tell them but I also remind them that accuracy and honesty is still important factors.
Question: What is the importance of tax planning?
Answer: Tax planning allows you to fully maximize your deductions and fully minimize your gross income. Most taxpayers should review their tax planning goals twice a year. Preferably... once in December and then again in June. Especially for my clients that have IRS debt or are non-compliant, I offer general tax planning. My fee is negotiable but averages $150.00 per client.
Question: What important information should clients have thought through before seeking you out?
Answer: My potential clients should ask themselves do they just want to file there tax return and hope for a refund or should they find a tax professional, like myself, who will teach them how to expect a refund year after year.
Question: What questions should customers think through before talking to professionals about their project?
Answer: No tax professional knows all of the IRS Tax Code. It is okay that some days you have to do your tax research.
Question: What advice would you give a customer looking to hire a provider in your area of work?
Answer: Each individual tax return is unique. Ask your tax professional lots of questions and be prepared to answer questions. If you keep having to make a large payment to the Internal Revenue Service each tax year, your tax professional should give you advice on ways to reduce that tax bill.
Question: What questions should a consumer ask to hire the right tax professional?
Answer: Will I be able to find / contact you when tax season is over? Can I trust you with my tax documents? What can I do now to make next year's tax season less stressful? Charlene Dixon Tax Service prepares taxes all year. Me... I am also background check verified.
Question: Describe the most recent Hurricane Harvey tax situations you are fond of?
Answer: I had a client who lost her car due to flooding from Hurricane Harvey. Under normal tax circumstances, she would not have been able to claim the casualty loss because she didn't qualify to file a Schedule A / Itemized Deductions. BUT... because it was a “qualified” disaster loss, I was able to increase her standard deduction by the amount of her net qualified disaster loss ($2,050) instead of itemizing deductions on Schedule A.
I had a client who made a 2018 withdrawal from his 401K to repair the damages on his home after Hurricane Harvey in 2017. He was upset because he thought that he would have to pay a lot of taxes and also the 10% early withdrawal penalty. He decided to hire me because of all my excellent client reviews. Not to disappoint him, I collected all of his tax documents, requested he get a transcript of his 2017 tax return and I began researching the issue. I found out that all 2018 401K distributions, used to repair damages to your main home in a 2017 disaster area (Hurricane Harvey / Houston, Texas) are subject to favorable tax treatment. I was able to include it into his income BUT ONLY in equal amounts over the next 3 tax years. Also, qualified 2017 disaster distributions aren’t subject to the additional 10% tax on early distributions. I found out that any repayments made in 2018 before you file your 2018 tax return and by the due date (including extensions) also reduces the amount of the distribution included in your income. My client was extremely happy and only owed IRS less than seven hundred dollars for his 2018 tax year.
I completed a joint tax return with complex issues. It included three large Pension Distributions, Stock Sales, Alternative Minimum Tax, Excess Advance Premium Tax Credit Repayment, Child and Dependent Care Expenses and a Underpayment Penalty. I researched each issue and maximized all the client's possible deductions. I also double and triple checked my numbers. The client was overall extremely pleased with my professionalism and the final product even though he owed tens of thousands. Throughout the preparation process, we reviewed strategic tax planning for the client's tax return.
I completed six prior year tax returns. It involved a total of eighteen W-2's, 1099's and a 1099-R. Just about each tax year had multiple Schedule C's. It took five days to prepare because the client was missing tax documents. With the client's help, we also reconstructed business expenses. The client was pleased with the final product because it accurately reported business income and expenses. The client plans to make initial payments on all tax years, and with my assistance, set up an IRS installment agreement.
Question: Describe two recent jobs you've completed.
I recently had a client that need to file five years of prior and current tax returns. The client had a Pension distribution in one year and Royalty Income in four years. I was able to prepare all years in two days. The client was pleased with my work and excited that she had refunds for three out of the five years.
I had a client that needed five years prepared as well. The client was upset and felt extremely hopeless. Since the client was experiencing a financial hardship, I was able to set up a payment arrangement so he could afford to pay me to file all five years. IRS had sent the client a bill for just one tax year of sixteen thousand dollars. After preparing four tax returns, the client now owes less than half of the original IRS bill. I have one more year left to prepare. The client per-qualified for IRS' Offer In Compromise and will have the $189.00 dollar application fee waived due to financial hardship. We will be filing soon so he can finally pay fractions of what is now due. The client is now happy and less stressed out. I also analyzed the current income and deductions and the client should now finally get to pocket a refund for several thousand dollars due to the Earned Income Credit.
Question: Describe a project, what it involved, and how long it took.
Answer: An elderly and health challenged couple received an IRS inquiry and needed me to file three prior year tax returns. All of their taxable income was from Social Security and a Pension. Unfortunately...he was disorganized and did not have all his tax documents at the time of our meeting. Previously, he had explained that he had been busy with home repairs and his failing health. I was able to communicate that he needed to get the tax documents to me ASAP. He quickly complied. In the end, he was due a refund on two of the three tax returns. I was able to complete the job in one week and we negotiated a reasonable summer special fee. Now... he claims I have a client for a lifetime.
Question: What are the latest developments in your field? Are there any exciting things coming in the next few years or decade that will change your line of business?
Answer: The latest development in tax preparation is the shared responsibility payment is reduced to ZERO under the Tax Cuts and Jobs Act for tax year 2019 and all subsequent years.
IRS is going more paperless and W-2 and other information forms will be required to be initially accessible online for each taxpayer.
From 2018 and beyond, taxpayers are going to demand that their employer pay for business related expenses because it is no longer deductible.
Alimony paid will no longer be tax-deductible and alimony received will no longer be taxable income. For decades, alimony, typically paid by men, has been tax deductible for the person paying it and taxable income for the person receiving it (typically women). But that basic tenet of divorce will no longer apply 2019 and beyond, due to provisions in the Tax Cuts and Jobs Act.
Question: If you were a customer, what do you wish you knew about your trade? Any inside secrets to share?
Answer: Most tax preparation companies, in addition to charging a tax preparation fee, charge a separate bank fee of $35.00 for electronically filing your return. They are counting that you will be too excited about the amount of your refund to notice.
Question: How did you get started doing this type of work?
Answer: I thought about working as a librarian but I decided on taxes because I love to do tax law researching. The Internal Revenue Code is vast and no one person knows all of it. As a tax professional, you get the opportunity to learn something new each day. That is the fun part of the job. That... and meeting people from all walks of life.
Question: If you were advising someone who wanted to get into your profession, what would you suggest?
Answer: You must like interacting with all types of individuals and personalities and working with numbers. You must learn to embrace change and enjoy learning new things on a continuous basis.
Question: What are you currently working on improving?
Answer: I will be taking more webinars on the Tax Cuts and Jobs Act which made major changes to the tax law. The Tax Cuts and Jobs Act (TCJA), enacted in late 2017, produced the most sweeping tax law change in more than 30 years. The TCJA, often referred to as tax reform, affects nearly every taxpayer and every federal tax returns file in 2018 and beyond.
Question: Do you have a favorite story from your work?
Answer: I had a client come to me with her tax return for a second review. I was able to properly re-calculate her American Opportunity Credit and show her how to report her additional Schedule C business expenses. She left with an additional $1,500 tax refund.
Question: I can't pay my IRS tax debt or I am not current on my IRS payments. What can I do? .
Answer: Have you considered IRS' Fresh Start Initiative? Have you considered qualifying for an Offer In Compromise? An offer in compromise (offer) is an agreement between you (the taxpayer) and the IRS that settles a tax debt for less than the full amount owed. The offer program provides eligible taxpayers with a path toward paying off their tax debt and getting a "fresh start." The ultimate goal is a compromise that suits the best interest of both the taxpayer and the IRS. To be considered, generally you must make an appropriate offer based on what the IRS considers your true ability to pay.