Tax News and Operational Updates
For any return that was sent prior to removing the option from the software, you will receive a check instead. If you have any questions, please contact the office.
A customer came back this morning with additional paperwork to finish a return I started on Wednesday. Just 2 hours later, we printed her $800 advance check!
2/4/17 1040TaxBiz reroutes and IRS rejections
If your return has not been transmitted for more than 12 hours, please check the following before calling.
- Did you put the return in the Ready to Review queue? We cannot see your return unless it is moved to this status when you complete it.
- Are there any notes? If we determine that identification, income statements or signatures are missing, we will move the return to the Preparing queue and leave a note as to the reason why. Once you correct the reason, remember to place the return in the Ready to Review status again.
If the IRS rejects your return, this is how to determine the reason.
- Under the Office Manager tab, click Rejected List for the returns that have been rejected. Click on the name of the return and navigate to make the correction.
- You can also click the Edit button on the Manage Returns page and it will show the rejection reason.
Once you have corrected the reason, remember again to put the return back in the Ready to Review status.
2/4/2017 1040TaxBiz funding calendar
On Wednesday, February 8, will be the first round of 1040TaxBiz funding. If the revenue share from eFiles is greater than the revenue share from bank products, we will be deducting the difference from your account. Please have money in your account to cover the debit. Revenue statements will be posted to the portal every Tuesday.
|Statement Cycle||Statement Posted||Funded|
|Saturday - Friday||Tuesday||Wednesday|
2/3/17 Overcoming objections
Do you have customers saying they'll wait to file their taxes until after February 15th because of the IRS rule surrounding EIC and CTC? Respond that they'll still have to wait 14-21 days for their refund after they file anyway so they're only delaying their refund. Close the sale by explaining they could possibly get up to $1200 now if they do their taxes with you! Sweeten the deal by offering the Kodi.
2/3/17 Add-on products and services require bank products
Banks products allow us to collect the fees out of the refund and alert us that a customer has requested an item. For the Kodi and apad, the minimum preparation fee is $200.
Anyone who attended my marketing webinar heard about my first client who added tax preparation and credit repair to his insurance company through 1040TaxBiz. Below are photos from Jeff Leavitt's Salt Lake City-based company All American Insurance & Financial. The wrap on the box truck includes tax prep information at the bottom. At first he put the air dancer on top of the truck making him 30 feet tall but the cold Utah winter deterred that. Notice the 1040TaxBiz banner next to his front door.
2/2/17 HoH and EIC deduction red flags
Don't lose customers who think their refunds are too low. Always check your Dependant Details to ensure the appropriate options have been selected for qualifying deductions. Red flags for missing options include columns on the 8867 Due Diligence form not being active and a lower year over year refund. Become knowledgeable about the age and income restrictions on the EIC table which can change qualifications year over year. For instance, in the year a child turns 17, the Child Tax Credit and therefore $1000 credit is lost. Also, qualifying dependents who are students can only be claimed until age 24. Look closely at the highlighted options below to determine if all appropriate selections have been made on the Dependent Details screen.
2/2/2017 IRS PTIN NUMBER PUBLIC NOTICE
The IRS alerted tax practitioners that it will soon be publishing their registration information online. The information includes the PTIN holder’s name, business name, mailing address, phone number, website, email address, and professional credentials. The IRS told PTIN holders that they may now use P.O. boxes for their business mailing address. It also said that if a practitioner used a personal address instead of a business address, or used a street address instead of a P.O. box, he or she may want to change it.
2/2/17 Customer resource for finding health coverage exemptions
Don't let customers leave your office because they're discouraged about the penalty for not having health coverage. At the top left a new Health Exemption link has been added. Familiarize yourself with the web site to assist customers in determining if they qualify for an exemption. Harold our office manager is a great resource to help you help your customer.
2/2/17 Reminder: entering the correct E1 card number
The ONLY number from the E1 card that should be entered into the system is the one in the envelope window that starts with nine zeroes. All zeroes must be included when entering the number.
2/2/17 Keep your customers in the know
Customers always want to know when they're getting their refunds. To minimize the number of repeated calls asking you when they can expect their refunds, here are resources to include when ending your transaction.
1. myepstax.com and Where's My Refund?
The myepstax.com website not only lets people know about the status of their advance but also links to the IRS website for the status of the refund. Make sure the customer understands the following information is needed and how to find it: social security number, filing status, actual amount of the refund reported to the IRS (not the refund less preparation fees).
This is an app that customers can download on both android and iphones.
2/2/17 Don't let 6 more weeks of winter slow your business
2/1/17 Valentine's Day Marketing
James Wells is having a contest to win a $100 gift card to attract customers between now and February 13. He created this nice looking ad to encourage people to visit his web page for more information about the contest. How can you market getting early funds through the cash advance or a contest to get people in before Valentine's Day?
1/31/17 Check printing software
The check printing software link has moved to the bottom of the Bank/Client Forms dropdown menu. Please download the file and call so we can help you set your system for printing checks.
1/31/17 Repost: Ethical office practices
1040TaxBiz observes the stringent ethical preparation standards set by the IRS and monitors preparer returns to ensure compliance.
Preparer due diligence items include:
- Verifying taxpayer’s valid form of identification.
- Recording responses in a customer’s own handwriting.
- Asking probing questions for the Preparer Due Diligence Form 8867.
- Scanning and attaching all documentation proving identity, income, and credit eligibility.
Penalties on each return for each infraction of the 8867 alone are $510 meaning you can be fined $1530 for all three in one return. Penalties and prison time can also be assessed for improper use of a Schedule C that either increases a customer’s income to qualify for higher credits or that decreases a customer’s tax obligation.
Please contact our office if you have any questions about any tax forms, preparation, or ethical procedures.
1/31/17 Check and bank card documentation
These following 4 forms are under Bank/Client Forms are to ensure all check and E-1 cards you receive are recorded and destroyed properly. The information below details how to use each form.
Use this to record the total number of cards and checks you received during the tax season. Because you will get a second batch you could keep a running total on the received line like 100+100 until the end of the season. Voided checks will be counted as used because they show up in the check register as voided. Count the total number destroyed at the end of the season to verify you accounted for all items.
This sheet is to ensure you’re matching the correct check number the check printing software. To ensure you're matching the check number assigned to the check you're about to print with the number on the check stock in your hand, it requires you to write both on the page.
CheckDistributionLog and CardLogOut
Record each card and check you hand out to customers on the respective form. Have them sign under name to prove they received the card.
1/31/17 Add-on services and social media
We've been updating our links to the left! There is a new section called Marketing Tools. Among the links are a series of 5 ads regarding the promotional products to attract customers and the add-on products to improve their physical and financial well-being while you earn additional revenue. You can periodically put them on Facebook, Twitter, et cetera to keep your space looking fresh and inviting.
Once the customers are in your office, have the forms under Product Addons available for them so you can close the sale. Here is how to use the materials:
I recommend printing (and laminating) the 2017 Value Added Services Promotional Items file so it’s on the desk facing customers when they sit down. It gives them the opportunity to ask questions about the services while you’re preparing taxes.
Point out the deep discounts for the Dental Vision Savings Plan.
Engage customers about the value of connecting to medical professionals in about 10 minutes and the prescription discounts with the Telemedicine program.
Explain the peace of mind Audit Protections provides as the IRS will scrutinize returns claiming Earned Income or Child Tax Credit or with Schedule Cs attached heavily this year.
Provide them with the more detailed flyers below for additional information.
The second page of the file describes how the Android TV box with Kodi streams movies, music, and live television shows.
The Client Copy – 2017 Value Added Services with Rebates should not be customer facing. It shows the rebate you earn for each of the add-on services customers purchase in red parentheses after the customer price.
LTC Dental Vision
National Tax Audit Protection
These are the forms with more detailed information about each of the services.
Product Add-on Agreement
Have customers complete the section(s) for the products they would like to add to their returns and sign and initial where indicated. Scan and attach this form through the Document Manager in the return.
The customer reviews, signs and initials all parts of the agreement. Scan and attach all pages through the Document Manager in the return.
Please any questions about these ads and add-on services or your own marketing efforts to allen@1040tax. Watch for an upcoming webinar to be scheduled to review marketing tools and the add-ons.
1/28/17 Being in the right place at the right time
Elizabeth McMillan visited her local radio station to purchase advertising for her Fayetteville, NC tax business. The advertising associate told her that it would cost $2000 for 30 mentions over the course of a week. The salesperson then offered a promotional opportunity where the station would broadcast live from a local tax business for several hours and run a contest. Not only would they make 100 mentions of her business prior to the event but also customers could download a scratch-off ticket phone app offering discounts of $10-50. The radio station had originally intended to market the opportunity to Jackson Hewitt or H&R Block. She quickly signed the contract and paid less than $1000 for far more advertising! She was able to put the money she saved toward signage on a bus and flyers. What a coup to take an opportunity away from the competition and stretch her advertising dollars!
If you're pursuing radio or television advertising, please contact 1040TaxBiz for assistance with negotiating a media discount.
1/16/17 Question of the day
What is the name of the program installed on the Android TV box that people recognize and how much is the shipping and handling for this promotional item?
1/16/17 Signature pad options
Because our tax preparation is web based, inexpensive signature pads work well. Here is an option from Amazon for $19.99 that we tested inhouse.
1/16/17 BREAKING NEWS
1040TAXBIZ CLIENTS CAN TRANSMIT RETURNS NOW!
Over the last 5 years, 1040TaxBiz has been selected as an early transmitter for returns. As a benefit of working with us, you can transmit returns A WEEK EARLY! That means your customers can get approved sooner for the Cash Advance up to $1200. Start transmitting your warehoused and new returns today.
Housekeeping before changing the status to Ready to Review:
Any test returns should have the first name Test so you don't accidentally queue one to send.
Be sure that the return is complete and all supporting documentation is scanned and attached.
1/14/17 Question of the day
From what website can you order advertising pole flags for as low as $49 and get replacement flags for the other services you offer after tax season for around $20?
Note: No one has answered the question from 1/13. Be the first to answer both and you can win 2 prizes!
1/14/17 Clases de marketing en español
Como hacer crecer su negocio con otros lugares
Anuncios y cosas como el Android TV (KODI) para atraer nuevos clientes
Otras cosas que puede vender que mejorar la salud y las finanzas: telemedicina, discuentos de visión y dental, reparación de crédito, y protección de auditoría fiscal
Recompensas al final de la temporada de impuestos en forma de tarjetas de regalo, televisiones, y más
1/14/17 Fraud Alert
During tax season, scammers posing as IRS representatives may call. Do not provide any information to these callers. The IRS will contact you by mail not by telephone with any questions.
1/13/17 Location Photo Contest Update
Thank you Patricia and James for sending photos of your locations.
Patricia offers a welcoming sign, professional looking desk space, and refreshing water cooler for her waiting customers.
James placed a sign outside his business enticing customers with the $1200 Cash Advance. He also designed another sign inside his business referencing both the Cash Advance and the Android TV with Kodi. These are the two biggest items to promote this season!
Learn more about these promotional items and the add-on health and financial services through one of the Register for Workshops links to the left. There are 3 pm Monday - Saturday classes and 7:30 pm Monday, Wednesday, Thursday and Friday classes. Next week is the last week to learn how to expand your business, attract customers, and earn more money with add-on services!
1/13/17 Bank Forms
Please check out the bank forms on here or 1040U. You will need all of these for controlling your check and card stock. If you have any questions, please give us a call.
1/13/17 Question of the day
What are the 2 add-on health services and 2 add-on financial services available to offer to customers to earn income in addition to tax preparation fees?
Thank you Tsegay for being the first to answer the 1/12 question. The answer was www.SnapStudioPlus.com and you can purchase graphic design, voice over, music, and other services from www.Fiverr.com.
1/12/17 Office Maintenance Request
If you have practice returns in your live software, please do not put them in ready to review, only put in actual returns. Also please change the first name of all practice returns to Test . Please do this asap.
Thank you so much! We appreciate it and you!
1/12/17 Question of the day
What is the website I suggested for creating high quality videos for your website or television that cost only $5?!
1/12/17 Required Forms
When reviewing returns, we will audit for the following documents to be attached. Clients under our EFIN will be required to have all of these documents. As a best practice, it is recommended that everyone require the customer to complete then scan and attach the Client Data Sheet and Schedule C Worksheet to prove the customer provided the information entered into program.
|Government Issued ID|
|Social Security Cards (if available)|
|Income (W2, 1099, or Schedule C)||
Schedule C Worksheet required
if using a Schedule C
|8879/8453 Federal and State|
|If using a Bank Product||Bank Consent to Use|
|Bank Consent to Disclose|
|Bank Application Signed|
Links to 2 Common Forms
Client Data Sheet
1/12/17 Activating the E1 Debit Card
Enter the entire number shown through the window of the envelope of the E1 card that starts with nine zeroes. For the customer to receive timely alerts when funds are available for the card, enter the Phone Details and Email & Security Information on the Taxpayer Identification Information screen. The customer then calls the 1-888 number or goes to the website listed on the card inside the envelope to activate the card upon receiving the alert.
1/12/17 UPDATED Proper Banking Procedures
When a customer pays up front prior to transmitting a return to the IRS, use the Non Banking option.
When a customer defers payment of all fees (preparation, bank product, add-on services, and promotional products) to come out of the refund, use the Banking option. The Banking option allows customers to apply for the Cash Advance. You can select RT/Advance if the customer wants to apply for the advance or RT if the customer only wants to defer the payment. ONLY PREPARERS IN ILLINOIS should use the Advance Only option. The return will be sent back to you if you select that option and are not in Illinois. A PowerPoint file titled Wrapping Up will be posted to 1040U to see the steps easier. Finally, change the status of the return to Ready to Review for 1040TaxBiz to review and transmit the return.
1/10/17 Marketing Webinar Contest
1/9/17 Best Practice
To ensure copies of all supporting documents you upload are retained, save the documents you scan as well as a PDF copy of the signed return in individual client folders on your local hard drive.
1/9/17 Advertising Flags
Below are examples of the flags one of our clients purchased that you can use to call attention to your business. These cost $49 each on ebay.
1/5/17 Start-up contest: First office to warehouse 25 returns wins: $100 gift certificate!
1/5/17 Start-up contest: Submit photos of your office: Best Retail setup wins: $50 gift certificate!
1/4/17 Marketing Materials and Webinars
Have you received and installed your marketing packet which includes the banner and posters?
Now is the time to market your business!
Attend a marketing webinar for more information about location selection, working with host business owners, marketing tactics, add-on products and collateral. Class schedules links will be sent by email or you can view them on 1040U at the link below.
Check out the videos for several of our promotional products and add-on services. You earn a rebate for each add-on service that you add to a customer's return.
1/4/17 Warehousing Returns
Don't delay in preparing returns for customers. Lock them in as your customer by providing free estimates. Warehouse their returns and send them as soon as the IRS accepts them.
1/4/17 Updated Tax Season Hours
Our current operating schedule is below:
|Monday - Friday||9 am - 9 pm EST|
|Saturday||10 am - 5 pm EST|
|Sunday||1 pm - 5 pm EST|
1/4/17 Support Phone Number
Support can only be reached through the 317.543.5570 phone number.