SSC Services, Inc. - Tax Prep Specialist

Why Use a Professional Preparer

2010-02-22T16:52:00.000-08:00

I am certain many of you wonder why you should use a professional preparer when your personal return is not very difficult.

Have you ever thought of it this way? You still need to buy the program - $50 to $100, including the state program. Then you have to download/install the program and spend at least some time learning the program or at least reading the directions and filling in the various boxes. You also need to have a copy of last year's return so that you can see how much your state refund was, to claim on the Federal and to see you Federal refund, which some states require.

After that, you need to go to the website and MAKE ABSOLUTELY CERTAIN that you have input the correct banking information. If you read the disclaimer on the IRS website when you go to electronically file your return, you will note that the IRS takes NO responsibility if you give them the wrong information and the refund is not deposited into your account for any reason, you must fight with your bank for restitution.

Here is a true, horror story. A woman filed her return online using the IRS website. She was claiming a general refund of approximately $2,000 along with a second-time homebuyer's credit of $6,500. When she filed, the site told her to expect her refund within two weeks.

When it had been three weeks and she still had not received her refund, she contacted the IRS who told her that the check had been issued the week before. The IRS would not give her the account number but when she checked her records, she discover that she had used the correct routing number but had inverted a couple of the numbers in the account number section. The IRS told her that they were issuing the $6,500 check on Friday and she could not stop the issuance but she could contact her bank and stop it at that end.

She immediately called the bank, told them the incorrect account number and the entire story and they said that the bank would reject the deposit as the name and account number had to match. Guess what?!? That did not happen.

The bank rejected the woman's state refund but the two Federal refunds went into the wrong account, the account holder immediately took out the money and closed the account. The IRS told her she had to get the money from the bank and the bank told her to get the money from the IRS and the wrong person had the money and was gone!!

Since the IRS clearly states on its website (http://www.irs.gov/) that they are not responsible for those types of errors, the woman probably has a pretty good lawsuit against the bank who allowed the transaction, especially since they did reject the state refund but allowed the federal.

In the meantime, it will probably cost the woman $20,000 to get back her $8,500.

If she would have come to us in the first place, we have safeguards in place to prevent that type of mistake. We have several checks and balances.

Plus, all she would need to do was gather her original documents, bring them into us and we would take all of the responsibility for making certain that the right money got into the right account. She would have spent much less time and not alot more money.

We are always looking for new clients if you are looking for a new preparer. Contact us directly or through our website, www.sscservices.com, and we will be happy to help you now and in the future.

First time and Second Time Home Buyer's credit

2010-02-06T08:46:00.000-08:00

I hope to be able to use this space to expand on some of our tax tips as well as to keep you updated on various topics of interest.

Since we are coming up on a deadline, I thought I would give you some additional information about the first time home buyer's credit (FTHBC) as well as the existing home buyer's credit (EHBC).

The FTHBC came into being originally on April 8, 2008 and ran through December 2009. that bill was subsequently amended and extended until april 30, 2010 with closing occuring by June 30, 2010. If you were eligible for the credit as it was first established and took it, then you will have to pay back the credit over a 15 year period. Homes purchased prior to January 1, 2009 are only eligible for this credit.

For calendar year 2009 and part of 2010, the credit has been changed. If you purchase your home after January 1, 2009 and no later than April 30, 2010 and close by June 30, 2010, the credit for which you qualify does not need to be repaid.

The credit is equal to 10% of the purchase price of the home not to exceed $8,000. The total cost of the home cannot exceed $800,000. The credit will also reduce if your adjusted gross income is more than $75,000 for a single person or $150,000 for a married couple filing a joint return. Two unrelated people can buy the same house and each claim up to $4,000 if they otherwise qualify.

A first time home buyer is a person who has not own a home in their own name for the past three years. The person cannot be married to someone who has owned a home in the last three years. By that I mean, if your spouse bought the house and has lived in it and now you get married and you never owned a home but you buy part of your spouse's home, or you sell the spouse's home and buy one together, you DO NOT QUALIFY!!

To be considered an existing home buyer you are your spouse, if you are married, must have lived in the same principal residence for any consecutive five year period in the last eight years that ends on the date the new home is purchased. the rules are the same as above but the maximum credit is $6,500.

In both cases your must file a paper return and attach Form 5405. You must also include the HUD statement or other documentation verifying the purchase. There has already been many cases of fraud and the government is trying to prevent further fraud.

If you are claiming the EHBC, you should also include proof that you previous owner a home such as a copy of your mortgage statement, insurance records or property tax records showing you owned the home. For the FTHBC, you should include copies of leases or other items showing rent.

If you still want some further information and examples, go to www.irs.gov/recovery. Links within the IRS include:1040 Central and First-Time Homebuyer Credit information Center.

We Are Here!!!

2010-02-03T15:11:00.000-08:00

We've made it here and we are looking for you to find us!! We will be blogging a couple of times a week and will keep you up to date on the latest tax news.

We are also working as hard and as fast as we can to meet the needs of all of our clients. We want to add YOU as a client so go to our website, www.sscservices.com, and ask to be on our mailing list. We do tax returns for people in 46 states and we want to have all 50!

For people in the greater Des Moines area - we are having a walk-in special on Wednesdays - Bring in your information between 2 PM and 6 PM and we will give you a special, low, introductory price!! We have will complete your return and electronically file it promptly.

If you are out of state, contact us for our special, new client price!!

We are looking forward to working with you. Watch this blog for interesting, innovative and great tax information and ideas for saving on your taxes.