Category: Earned Income Tax Credit

Income Tax Returns Aren’t Toilet Paper

“When did the preparation of income taxes become a commodity item carrying the same importance as a roll of toilet paper? What’s next, buy computer time and prepare your return yourself? The business of preparing income taxes is an important calling, and your choice of an income tax preparer should neither be based solely on how big a refund they promise to get you, (which is illegal, by the way), nor by how little they charge. Instead, ask your preparer the following questions:”

Income tax returns are not toilet paper.

Today, while driving through my home city of Brooklyn, NY, I passed the office of a national income tax preparation franchise. They had a sign outside their office that read, “$50.00 off your income tax return today!!”

Get Your Toilet Paper Here!

When did the preparation of income taxes become a commodity item carrying the same importance as a roll of toilet paper? What’s next, buy computer time and prepare your return yourself? The business of preparing income taxes is an important calling, and your choice of an income tax preparer should neither be based solely on how big a refund they promise to get you, (which is illegal, by the way), nor by how little they charge. Instead, ask your preparer the following questions:
  • How many CPE classes did you attend last year?
  • Which, if any, professional organizations do they belong to?
  • What percentage of the returns you prepare are audited each year?
  • Do they have a Federal PTIN?
  • Do they have a New York State Tax Preparer Certificate of Registration?
  • If they must relocate their office, how will they inform you of their new address?
  • For how many years have they prepared income taxes?
  • Are they aware of the EITC Due Diligence rules?
  • Will you sign my income tax return?
  • What is their Privacy Policy regarding the protection of your personal information?
  • Do they make up their own itemized deductions so you will receive a larger refund?
  • How many times have they been cited for filing fraudulent income tax returns?

Bottom line, stop worrying about today’s sale on income tax preparation. I’d be more concerned about the skills and professional manner of who is preparing my return.

In addition to providing his clients and seminar attendees (many of whom become his clients), with insurance and income tax strategies and solutions, Eustace L. Greaves Jr.,  also prepares income tax returns for over 150 of his clients annually. To contact Eustace L. Greaves Jr., about his insurance and income tax services, feel free to call him at 718-783-2722, or by email to [email protected].

10 Top Reasons You Need A New Tax Preparer |

“Some of you though really don’t know whether or not you are in any danger of an audit which will make your hard-earned money leave your wallet. You aren’t aware of the many subtle ways you can find yourself in hot water with taxing authorities, but you have this nagging ache in the pit of your stomach every time you sign your return. And the thought of taking a group picture while doing 2-5 for tax fraud really doesn’t appeal to you.”

10 Top Reasons Why It’s Time For You To Get A New Income Tax Preparer

Well, soon another new and exciting (Another Federal government shutdown, anyone?) income tax filing season will begin. And as visions of income tax refunds dance in your heads, it is a good time to think about who you will hire to prepare your income tax return next year.

From some of you, it’s a no-brainer: Your last preparer’s actions placed you on the IRS watch list which is akin to being on the world’s worst financial no-fly list.

Some of you though really don’t know whether you are in any danger of an audit which will make your hard-earned money leave your wallet. You aren’t aware of the many subtle ways you can find yourself in hot water with the taxing authorities, but you have this nagging ache in the pit of your stomach every time you sign your return.  And the thought of taking a group picture in stir while doing 2-5 for tax fraud really doesn’t appeal to you.

So here at the Afternoon Show Before My Nap with your host, Eustace L. Greaves Jr., I thought this was a great time to check  the 10 Top Reasons Why It’s Time For You To Get A New Income Tax Preparer!

Reason number 10:

You own and live in a two-family home. Your tenant pays you $12,000.00 in rent, and you have use of 75% of the house. Your tax preparer, knowing you need a big refund, depreciated the house at 100% and shows only $6,000.00 in rental income on your return.

Reason number 9:

You haven’t been to church, any church, in the last 20 years. Yet each year, your preparer says you can claim $10,000. For going to a Church named Church.

Reason number 8:

You receive certified, return receipted correspondence from the IRS. When you show it to your preparer, she smiles and tells you don’t worry, they just want to make sure you receive your thank you note.

Reason number 7:

You’re a receptionist at a medical center. You earn $30,000 each year. Your preparer, preparing Schedule A, gives you itemized deductions of $9,000.00 for uniforms, $3,000.00 for educational seminars, and  $2,000.00 for business-related travel.

Reason number 6:

Lost your 1099 Int and 1099 Div forms? “No worries”, says your preparer. “The IRS doesn’t worry about interest or dividends under $75.”

Reason number 5:

Your return shows three (3) brand-new dependents you’ve never met.

Reason number 4:

Your preparer guarantees you everyone qualifies for the Earned Income Tax Credit. “You earned an income last year, didn’t you?”

Reason number 3:

You ask your preparer if they have a PTIN and they tell you they’ve never liked certain foreign sports cars.

Reason number 2:

Your preparer relocates each year. Luckily you find them. Again.

And now the number one reason Why It’s Time For You To Get A New Income Tax Preparer is:

Your preparer tells you, “Don’t worry, my system never fails. I know how to get you the best refund you’ve ever gotten.”

Thanks for reading. And just in case you don’t understand why these are bad things, you can watch this blog for more information,  give me a call at 718-783-2722 or send me an email at [email protected].

Eustace L. Greaves Jr., is a business owner who provides integrated insurance and income tax strategies and solutions for his clients. He does, however, hate telling you your last tax preparer’s errors have you owing the IRS really big money.

EITC and PIRP. Perfect Together | Brooklyn Covered

Tell you what, let’s apply the same penalties to everyone who’s ever claimed to attend and participate in a six-hour Point and Insurance Reduction Program class, but didn’t. They would lose both the 10% discount on their auto insurance, and the reduction of up to four points on their drivers license. And they would not qualify for either benefit for a period of no less than ten (10) years.

Let’s Apply EITC Penalties To PIRP

You may be wondering why I think EITC and PIRP ( Earned Income Tax Credit and Point and Insurance Program, respectively) share any similarities. Well, they don’t. At least not yet.

Under the current personal income tax law, if you claim the earned income tax credit, and it is later disallowed because you made a fraudulent claim, you lose the right to claim the EITC for ten, count ’em, ten years. Which means by the time you’re able to legitimately claim the EITC again, you’ll either be too old, or the children you would’ve used to qualify for it have children of their own.

What Types Of Penalties Should We Impose?

Tell you what, let’s apply the same penalties to everyone who’s ever claimed to attend and participate in a six-hour Point and Insurance Reduction Program class, but didn’t. They would lose both the 10% discount on their auto insurance, and the reduction of up to four points on their driver’s license. And they would not qualify for either benefit for no less than ten (10) years.

Even better, for those we catch engaging in fraudulent actions, let’s give them two (2) points for the first infraction, three points for the second, license suspension for a period of not less than six months for the third, and license revocation for no less than a year for the fourth infraction for as long as they have the privilege of a New York State Drivers license.

If they’re crazy enough to try it more than four (4) times? Well, you can’t fix stupid.

Mandate that those so caught must actually attend an actual  PIRP class at least once every three (3) years, without the benefit of getting either point reduction or a discount on their insurance. Talk about your new assessment!

Wait, you supposedly attended a class, and you claim to have never heard about assessments?

Are you sure you attended a full six-hour class?

So why am I venting about this today? Well, as a NYS-certified PIRP Delivery Agent and Instructor, I take great pride in making sure everyone who attends one of my classes leaves feeling;

  1. Empowered by the knowledge they’ve acquired,
  2. Confident in their ability to “survive the driving experience” or,
  3. Afraid to drive ever again. And wondering how the heck they’ve lived this long.

What really drives me nuts is when I talk to clients about an upcoming class, and they tell me they did it the easy way. They are not ashamed to tell me they go to certain agencies where they pay about $100.00, copy the answers to the driving test, fill out a few forms.

No six-hour class. Heck, I’m surprised if it takes more than six (6) minutes to “complete” a course this way. This is dangerous for you and anyone else near the road. For insurance companies, they are losing premium dollars. For the driving and walking publics, you’re sharing the road with people who shouldn’t legally have drivers licenses. And the United States Treasury loses because these crooks require payment in cold, hard, cash. Just imagine how much taxable income is not being declared.

Isn’t it just amazing how I can make my wild titles work out at the end?

How Do We Prevent This Type of Fraud?

In my next post, I’ll outline the methods I’d use to stifle the growth of this felony activity.

What Ever Happened To The Series On Force-Placed Homeowners Insurance?

Not only will that series continue, I’ve got some new wrinkles for you. Stay tuned.

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