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Sigma Tax Pro Advises Tax Preparers To Use Taxpayer Cash Advances This Tax Season

Taxpayer cash advances are a big incentive to bring in new clients, tax professionals must have this option available to ensure they do not lose business to competitors

 

As the IRS delays the funding of returns again this year for millions of American taxpayers, the option of receiving a cash advance on a refund is very attractive. Most of the major players in the tax preparation industry are offering this product including, H&R Block and Jackson Hewitt. Independent tax professionals will want to be able to compete and have their own cash advance available to taxpayers. Fortunately it is quite simple to offer this option and requires tax pros to sign up with an IRS approved refund transfer provider such as TPGRefund AdvantageEPSRepublic Bank or Refundo.

The refund transfer provider will advance the taxpayer anywhere from $500 to $2,500 depending on their underwriting guidelines. Ian Gardner from Sigma Tax Pro notes an important distinction, “These advances are not based on the taxpayer’s credit but on the information submitted in the tax return”. The advance will be given to the taxpayer on debit card or a check. Once the tax refund is funded the IRS transmits the refund to the refund transfer provider who will then pass on the balance of the refund minus the advance to the taxpayer. In the event that the IRS does not fund the refund there is no recourse to the tax professional or the taxpayer.

Many tax professionals already use refund transfer providers as a way to collect their preparation fees directly from the taxpayer’s refund. There are many advantages to working with refund transfer providers including pre-season loans for tax professionals, in-season advances on preparation fees and a variety of disbursement options for taxpayers.

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.

For the original version on PRWeb visit: http://www.prweb.com/releases/2018/01/prweb15102478.htm

 

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Sigma Tax Pro Announces That The Funding of Pre-Season Loans Will Begin Shortly

DELRAY BEACH, Fla.–(BUSINESS WIRE)–

Every year thousands of seasonal tax offices rely upon a small loan, usually in December, to help get their office up and running for tax season. This loan can cover anything from paying employees to funding a marketing campaign. Each of the major refund transfer banks offer their own variation, but the idea is the same all around.

The requirements to be approved for one of these loans is based mainly on the number of funded refund transfer products processed by an individual tax office or group in the previous tax season. Additionally, the banks want to check an office’s “funding ratio” which analyzes how many of the submitted refund transfer products actually funded. This means it’s not just about quantity, but more about quality. The third deciding factor is usually the total amount of prep fees that an office received. The reason for this metric is to ensure that the lender will receive back their funds with little risk. Ian Gardner, of Sigma Tax Pro reminds tax professionals that, “The banks aren’t underwriting these loans in the traditional way. Rather, they’re looking at a snapshot of the office to make sure they are going to get their money back, and not risk too much.”

Applying for the loans is simple and easy. If the tax office was using the RT bank the prior year, all they has to do is apply through their banks login portal. If the tax office used a different RT bank than the one through which they are applying in the current year, the new RT bank will normally request some records from the tax office, such as earning reports, and prior year RT reports. Once the requested documents have been submitted and decisioned, money is disbursed automatically via direct deposit. Repayment of these loans is automatic as well, by the RT bank taking a portion of the tax offices incoming preparation fees.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171129005361/en/

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Sigma Tax Pro Warns That Tax Returns Will Not Be Processed Without Health Coverage

This will be the first tax season where a tax return will not be processed without addressing the Affordable Care Act requirements.

 

Last year, taxpayers were penalized for not having the required health care coverage. They were penalized by experiencing longer than normal delays in processing their refunds, as well as being forced to pay an individual shared responsibility payment if they did not qualify for an exemption. However, this year any return that does not address the ACA requirements will not be processed. Taxpayers can still indicate whether they qualify for an exemption, or have decided to make the individual shared responsibility payment, but they cannot simply skip the question.

While President Trump and fellow Republicans have attempted to repeal the Affordable Care Act, it will still be in place for the 2018 filing season. The IRS have reviewed the law and their stance is that “this process reflects the requirements of the ACA and the IRS’s obligation to administer health care law.” Last year, they would accept returns in which the taxpayer was silent on the issue, and would follow up after filing if needed. Ian Gardner, of Sigma Tax Pro reminds tax pros that “Handling the issue at the time of filing can save you and the taxpayer a significant amount of time and money that would have otherwise been spent attempting to resolve the issue.”

The IRS is still behind on handling this issue from prior years, and in fact didn’t start sending out letters for the 2014 and 2015 season until this past September, in which they requested info from around 130,000 taxpayers. This shows the system as it existed was clearly flawed, so they have taken steps to proactively improve the process. With the delays experienced last year due to the PATH Act, tax professionals need to ensure they’re doing everything they can to get their clients refunds processed as quickly as possible.

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.

For the original version on PRWeb visit: http://www.prweb.com/releases/2017/10/prweb14840387.htm

 

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Sigma Tax Pro Warns Summer Doesn’t Mean Scammers Take Time Off

Sigma Tax Pro warns taxpayers that the scammers have recently redoubled their efforts to cheat innocent victims out of their hard earned dollars.

 

In a recent press release from the IRS, taxpayers are warned of a new scam targeting American taxpayers. As described, the scammers call the taxpayers and angrily demand a tax payment be made using a prepaid debit card. What sets this recent scam apart is that the taxpayer is told the IRS has attempted to send them notification via certified letters which have been returned as undeliverable. The culprits then go on to warn the victim that they will be arrested if the payment is not made immediately. They place increased pressure as well by specifically warning the taxpayer not to contact the IRS, their tax preparer, or an attorney before making the payment.

While it may seem obvious that this is a scam to some, many can fall victim to a high pressure call and threat of jail time. IRS Commissioner John Koskinen reminds taxpayers that “People should remember that the first contact they receive from the IRS will not be through a random, threatening phone call.” Ian Gardner, of Sigma Tax Pro also notes that, “While some state offices have outsourced their collection attempts, those private companies tasked with the job have multiple levels of verification available to ensure the taxpayers feel comfortable.”

If any tax preparers are confronted by their clients with issues like this, they can verify through a number of means. If a bank product was used on the return then the bank can help to verify that no refund was received. To verify any calls without the help of a tax professional, taxpayers are urged to consult the Electronic Federal Tax Payment System, which is a free service offered by the Treasury Department for paying taxes. The IRS also reminds taxpayers that since the system is automated, they will not receive any phone calls. The IRS also allows for multiple options for paying an authentic tax bill, and would never be required to use a specific method.

Taxpayers and tax pros alike are reminded to be wary of anyone posing as an IRS agent, and should always report any suspicious activity. If you suspect fraud, contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.

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.

For the original version on PRWeb visit: http://www.prweb.com/releases/tax/software-for-professional/prweb14458454.htm