<p>I am a long time CC member but didn’t want to post this under my usual name. I know I’m not supposed to set up a different account so if the mods need to delete me that is ok. </p>
<p>Anyways I am in a dilemma and would be interested in some input from CC parents who usually have lots of opinions.</p>
<p>I have been a stay at home Mom for a long time and as a jump off point for getting back into the workforce decided to do the training to work for one of the big tax prep companies. I’ve done several weeks of training (all unpaid) and have now been hired, though have not started yet. I find though that I am very uncomfortable with some of the products that these companies sell in addition to doing the tax prep - namely the loan products. These are basically advance loans on peoples refunds. I am somewhat horrified by them and the high charges. We are not expected to heavily push them or anything, but it seems like a lot of people really do want them. Mostly people who can really ill afford to pay that money. </p>
<p>My husband thinks I should just go ahead and do the job or at least give it a couple of weeks, saying as long as people want the products (many are return customers) and I am not expected to do a hard sell. But I am increasingly uncomfortable and really quite dreading it now. I was looking forward to doing the tax prep side, but the loans remind me of those pay day cash advance places that charge usurious interest rates. I feel like a real quitter if I quit the job before I even start it. I am really struggling with this.</p>
<p>if you can find a way to emphasize the cost of the ‘advance refund’, do so.</p>
<p>You can’t prevent people from being idiots. Most people could do their own refunds for $20 using online tax software. </p>
<p>the people that use these advance loans are the same people who are used to paying late charges, bank fees and just generally being in debt. You aren’t going to solve their poor money management skills.</p>
<p>Most people that get their refunds back quickly (i.e. the loan type products) usually already have an idea of the cost involved, especially if they are return customers. The reasons why they are ok with this run the gamut. In the past we have used the rapid refund option and we are certainly not ok with bank fees, late charges or the like, we just needed the money then instead of later for a variety of important issues. Now however, we do use online software and the direct deposit option for what it’s worth.</p>
<p>I do not think these people that use the rapid refunds are idiots, just for whatever reason they need the money sooner rather than later.</p>
<p>As for you situation kindabothered, did you really have no idea that tax preparer places push these products? The place that we went never pushed anything. They gave us our refund options and let us decide without any prodding. It seems a bit naive to me that you had no idea about this walking in.</p>
<p>A great deal of the people using Rapid Refund and getting large refunds are receiving money due to the Earned Income Credit. They are receiving a refund of money that was never theirs anyway. They don’t mind $250 less refund to get it faster.</p>
<p>Having said that, IMO, it’s almost always a poor choice. Direct deposit will result in the money in one’s account in 7 to 17 days. If they wait all year, what’s an extra 2 weeks?</p>
<p>The fees these “big box” tax prep firms charge on indeed heinous. Almost always, their fees are higher than what CPAs in my community charge, and their preparers are part-time and have 6 weeks training rather than 5 years. To each his own, I guess.</p>
<p>I am glad to hear they don’t <em>push</em> their bank loans, but it certainly appears to me that most of their clients take them. OP–if you enjoy the work and especially because they don’t make you push the loans, I’d go for it. You can always get experience and then work for a CPA firm in the future. Many/most of them don’t offer the bank loans. They are often seeking experienced preparers willing to work during tax season.</p>
<p>It’s my 2nd year working for a “big-box” tax firm. We are trained to to show preference one way or another regarding the options for tax refunds, simply to compare the differences side by side, including all fees involved. To my knowledge, it is not our tax firm making money off of these bank products…the banks do, (as usual.) We simply collect our fees from the refunds so that the client doesn’t have to pay up front. Kindabothered- I know you will enjoy your new part time job. It’s a lot of fun to be able to help people and try to find every possible refund they’re entitled to!</p>
<p>^^Are you sure your firm isn’t making money from the loans??? I don’t think that is true, at least not based on my experience in the tax arena. Firms would not do the extra work if there were not reimbursement for it.</p>
<p>You are correct–it is lots of fun to tell people they get a refund and make them happy! Much less fun to tell them they owe tens of thousands…</p>
I know. I have not used a CPA (our taxes are fairly simple), but I have a good friend who is not comfortable doing her own taxes and I was surprised when she told me what her CPA charges. I decided to do this this year is I am also back in school and starting an accounting degree so thought it would be good experience. And it works around school hours fairly well.</p>
<p>OP: I think you should go ahead with the job. It’s hard to get back into the workforce when you have been out for a long time. Most re-entry jobs are going to have some factor that isn’t ideal. As a previous poster said, this could lead to a better job with a CPA firm or at least will give you something current for your resume.</p>
<p>Swim - I agree with post #2: people are not going to change their thinking, or lack thereof, when it comes to their finances. </p>
<p>We know people who signed mortgages before the bust when they had no business buying a house - but no one could talk them out of it.</p>
<p>The way people finagle with tax write offs is also annoying. </p>
<p>Focus on what interested you to do tax preparation in the first place and make the best out of it! (I do hope you have time to continue posting in CC.)</p>
<p>And hold on to your values - they seem mighty good!</p>
Rebelcats - No I really had no idea as I didn’t even know they had loan products until I started doing the training. I just thought the business was doing tax preparation for a fee. We have always done our own taxes so I have never walked through the door of the tax prep company until I went in to ask about the job.</p>
<p>I certainly don’t think the people are idiots. I’ve fortunately not been in a situation where I need the money so much (or have not had some other option open to me at least) from a pay check or tax return that I would pay the fees to get it a small time earlier. But I know some people are in that situation.</p>
<p>I think that full disclosure of all fees involved and the tax preparer’s interest in the transaction (so all conflict of interest issues are addressed) is the key. After that, people should be allowed to do what they think is in their own best interest.</p>
<p>Aside: How can the bank (or whoever) is extending that loan be sure that the tax return information isn’t fake? It would seem that they could be easy targets for fraud. Or maybe that is why the fees are so large?</p>
<p>Many people just don’t have checking accounts. Many immigrants don’t want it or don’t exactly have the right credentials for traditional banking services.</p>
<p>ellenenope–The IRS sends an electronic acceptance that the return has been submitted and accepted. It’s usually very quick–almost always within 24 hours and often within a few hours.</p>
<p>These firms aren’t giving out the money until they receive that acceptance. Earned Income Credit fraud is HUGE and the IRS is very aware of that. They are constantly working compliance on the issue. There are many regulations on what preparers are required to see, and retain, in order to claim dependents, claim earned income credit, etc.</p>
<p>swimcatsmom–good luck with your accounting degree! It’s a great degree and opens the doors to many types of jobs.</p>
<p>Did you know that if you worked at one of these big 3 companies seasonally, you may be able to deduct your tuition/fees for an accounting degree? Even if you have a full time job elsewhere! Good deal for someone looking to return to school.</p>
<p>Do any of you here think less of me because I work at one of these companies for a little (very little) bit of dough? I hope not because I forgot to disguise my identity!</p>
<p>LOL. I didn’t do a new ID because I thought anyone would think less of me because I work there. I have a lot of other posts that would make me somewhat identifiable as far as where I live so was a bit wary of saying something on the internet about a company I will be working for. You read so many stories about people shooting themselves in the foot by something they post on the net and I didn’t want my employer coming back and saying ‘did you post this on the internet’. So ok I’m a bit paranoid maybe :rolleyes:. </p>
<p>Thanks for all the insights from everyone. I was really feeling stressed out about this last night and needed some objective words. I suspect there is a contributing element of fear (terror) about going back in the working world after 100 years. I am a bag of nerves right now, which is unusual for me.</p>
<p>Hey, we hear you, kinda. I’m “kindabothered” by the idea of going back to work, too. I’ve done several part-time things at home for the past 13 years. If my H’s business doesn’t improve real soon, I’ll be out there looking for a job, any job, right quick. </p>
<p>You should feel confident that you took the classes and got hired for this. Onward and upward…</p>
<p>I work for an accounting firm and you’d be surprised how many people ask us to provide the same quick refund that the Big Block stores do. I explain why we don’t do it and they seem okay with it although some people don’t return to us and I assume it’s because they want their “quick refund”. I say that as long as you are clear on the charges involved, it’s not your job to tell them they can’t use a service that they really want to use. I think you should continue to get some experience preparing returns and maybe work for a different kind of firm in the future.</p>
<p>^ “some people don’t return to us and I assume it’s because they want their “quick refund”.”</p>
<p>OK, asked the office supervisor at the “Franchise” last night how much our company makes for providing bank products. She said nothing, that it is to offer our clients options for their refunds.</p>