VOLUME 08 – FALL 2014

Sigma Tax Pro Comments On Cuts To IRS Budget

Recent cuts to the IRS budget by Congress affect hold times experienced by professional tax preparers

As many tax pros are already aware the IRS budget was cut by 7% in 2014. IRS Commissioner John Koskinen feels that these cuts are unfair and may be driven by the IRS’ targeting of conservative groups last year. Koskinen argues that the IRS budget is only $11 billion per year but if compliance with the tax code drops 1% this costs the government $30 billion per year in lost revenues. The commissioner sees the IRS as a money-making entity and that cutting its budget will cause more harm than good in the long run.

Jody Dovich from Sigma Tax Pro explains how this will affect tax professionals: “Hold times are already long when preparers are calling the IRS for assistance. These budget cuts will only increase the hold times and make tax season even more frustrating for tax preparers and their clients.” John Koskinen affirmed this idea in a recent address to the National Society of Accountants and urged tax professionals to call their congressmen and vent their frustrations. Koskinen also highlights that the IRS budget is being cut even as they are being asked to take on the additional work of handling the tax provisions of the current administration’s signature legislation, the Affordable Care Act.

Sigma Tax Pro provides a full range of essential services for tax pros. This includes industry-leading software solutions as well as technical support, tax preparation support and client retention strategies. Sigma Tax Pro specializes in helping tax preparation firms expand their businesses, open new offices and increase their client base. Tax preparers can also become resellers of Sigma’s 10400-CL software and increase their revenue during tax season.

Contact: Jody Dovich Sigma Tax Pro +1 561-450-6422

NEWS AND TIPS

Tax Pros aid In IRS Recovery Of $576 Million In Tax Refunds

Sigma Tax Pro applauds the recovery of refunds by the IRS assisted by financial institutions and tax professionals.

The Treasury Inspector General for Tax Administration recently reported last year’s recovery amount, which is more than double previous years’ recoveries. This success was attributed to the IRS’s External Leads Program. The program generates leads about potentially incorrect tax refunds from banks, brokerage firms, law enforcement and the tax preparation industry. The refunds in question can be Treasury checks, direct deposits or prepaid debit cards which are the standard refund options that tax pros will offer to their clients. While the leads program has undoubtedly been a success, the Treasury Inspector General also sees room for improvement through faster follow-up on leads.

The recent success of the program can be attributed to the exponential increase in partner financial institutions that the IRS has enjoyed since 2010. Jody Dovich from Sigma Tax Pro comments on this increase: “When the program first started in 2010, they only had 10 institutions signed up. Now in 2014, they have over 250 institutions on board. That’s a massive increase.” The program has also increased its revenue from $233 million to last year’s record of $576 million. If the IRS is able to achieve their goal of verifying and responding to leads quicker, then next year’s revenue should only grow, as well as the number of institutions participating in the program.

Sigma Tax Pro provides a full range of essential services for tax professionals. This includes industry-leading software solutions as well as technical support, tax preparation support and client retention strategies. Sigma Tax Pro specializes in helping tax preparation firms expand their businesses, open new offices and increase their client base. Tax preparers can also become resellers of Sigma’s 10400-CL software and increase their revenue during tax season.

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