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Started By
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re: Taxfyle. New Tax Prep Website for CPAs. Is it legit?
Posted on 2/8/16 at 3:40 pm to LSUFanHouston
Posted on 2/8/16 at 3:40 pm to LSUFanHouston
Hi Guys,
We appreciate the insight as we aim to make the process of accepting and completing work as fluid as possible.
To LSUFanHouston's point, we are appealing to the market of individuals that view tax preparation as a commodity (the 70%). Our target market are millennials who in most cases have simple returns and don't require constant support or complex planning from a CPA. We are promising our clients convenient (through app) and quality services (CPA workforce) at a cheaper price than they would find at their local brick and mortar tax preparation office.
The CPA's are offered an opportunity to supplement their income without the effort of soliciting potential clients.
To address Poodlebrains concerns, any communication with the clients will need to be done through our in app messaging system. These communications are encrypted to ensure confidentiality of private information. Should any disputes arise between CPA and client/customer, we will make our records available to the necessary parties. This functionality supports the AICPA's SSTS No. 3, regarding due diligence. A member may in good faith rely, without verification, on information furnished by the taxpayer or third parties. If required to substantiate documentation for a reported deduction, a member should make appropriate inquiry through our app's chat feature in satisfaction of such condition. A prepares declaration on the tax return states that the information is true, correct, and complete to the best of the preparers knowledge, this does not require a member to examine or verify supporting data. Although a member holds certain responsibilities in exercising due diligence, the tax payer has the ultimate responsibility for the contents of the return. Our app makes use of a taxpayer’s returns for one or more prior years to help in preparing the current return. Reference to prior returns and discussion of prior-year tax determinations with the taxpayer should provide information to determine the taxpayer’s general tax status, avoid the omission or duplication of items, and afford a basis for the treatment of similar or related transactions.
We appreciate the insight as we aim to make the process of accepting and completing work as fluid as possible.
To LSUFanHouston's point, we are appealing to the market of individuals that view tax preparation as a commodity (the 70%). Our target market are millennials who in most cases have simple returns and don't require constant support or complex planning from a CPA. We are promising our clients convenient (through app) and quality services (CPA workforce) at a cheaper price than they would find at their local brick and mortar tax preparation office.
The CPA's are offered an opportunity to supplement their income without the effort of soliciting potential clients.
To address Poodlebrains concerns, any communication with the clients will need to be done through our in app messaging system. These communications are encrypted to ensure confidentiality of private information. Should any disputes arise between CPA and client/customer, we will make our records available to the necessary parties. This functionality supports the AICPA's SSTS No. 3, regarding due diligence. A member may in good faith rely, without verification, on information furnished by the taxpayer or third parties. If required to substantiate documentation for a reported deduction, a member should make appropriate inquiry through our app's chat feature in satisfaction of such condition. A prepares declaration on the tax return states that the information is true, correct, and complete to the best of the preparers knowledge, this does not require a member to examine or verify supporting data. Although a member holds certain responsibilities in exercising due diligence, the tax payer has the ultimate responsibility for the contents of the return. Our app makes use of a taxpayer’s returns for one or more prior years to help in preparing the current return. Reference to prior returns and discussion of prior-year tax determinations with the taxpayer should provide information to determine the taxpayer’s general tax status, avoid the omission or duplication of items, and afford a basis for the treatment of similar or related transactions.
3
Posted on 2/8/16 at 7:36 pm to rlavina1
Do you have a standard engagement letter? If so, would you provide a copy of the engagement letter?
Posted on 2/8/16 at 8:20 pm to rlavina1
1) So we are the CPA's signing the return?
2) We use our PTIN and EFIN?
3) Do you provide E&O insurance and cover the preparer for any liability resulting from the client?
4) What type of software are you using if the preparer uses taxfyle? Lacerte? Prosystem?
2) We use our PTIN and EFIN?
3) Do you provide E&O insurance and cover the preparer for any liability resulting from the client?
4) What type of software are you using if the preparer uses taxfyle? Lacerte? Prosystem?
Posted on 2/8/16 at 10:37 pm to rlavina1
Does this in-app communication system feature video/audio, or is it purely text/written communication?
As a professional, I would have difficulty signing a return without full control of the entire process. The fact that my communications can only take place via a protocol that is NOT of my choosing is pretty much a non-starter for me.
You have to understand, when we sign that return, every time we sign that return, our license and our good standing gets put on the line. You have to understand while the law says CPAs can rely on the client and not audit information, the IRS' pattern of imposing preparer penalties says otherwise.
While I think there is a lot of potential in your company, what your are offering is very much a subcontractor relationship. The taxpayer's relationship is to you, the Taxfyle company, not the CPA. As such, in most subcontractor relationships in the tax world, the subcontractor does not sign the return.
I would be happy to consider, under the current circumstances of your company, preparing the return as a subcontractor, with the understanding that the return will be reviewed and signed by a competent, licensed CPA that is an employee of your company. I understand and accept that I would be paid less than if I was signing the return, but to me, the additional compensation is not worth the additional risk of having to sign a return without full control of the process.
I wish you guys a lot of luck, and I hope you will report back to us after 4/18 and let us know candidly, as much as you can understanding confidentiality, how things went. The 70 percent you are going after, those who don't want to do online filing themselves, are stuck with the crappy chains, or worse, the fly by night here today, gone tomorrow hood shops that are just outright frauds.
As a professional, I would have difficulty signing a return without full control of the entire process. The fact that my communications can only take place via a protocol that is NOT of my choosing is pretty much a non-starter for me.
You have to understand, when we sign that return, every time we sign that return, our license and our good standing gets put on the line. You have to understand while the law says CPAs can rely on the client and not audit information, the IRS' pattern of imposing preparer penalties says otherwise.
While I think there is a lot of potential in your company, what your are offering is very much a subcontractor relationship. The taxpayer's relationship is to you, the Taxfyle company, not the CPA. As such, in most subcontractor relationships in the tax world, the subcontractor does not sign the return.
I would be happy to consider, under the current circumstances of your company, preparing the return as a subcontractor, with the understanding that the return will be reviewed and signed by a competent, licensed CPA that is an employee of your company. I understand and accept that I would be paid less than if I was signing the return, but to me, the additional compensation is not worth the additional risk of having to sign a return without full control of the process.
I wish you guys a lot of luck, and I hope you will report back to us after 4/18 and let us know candidly, as much as you can understanding confidentiality, how things went. The 70 percent you are going after, those who don't want to do online filing themselves, are stuck with the crappy chains, or worse, the fly by night here today, gone tomorrow hood shops that are just outright frauds.
This post was edited on 2/8/16 at 10:38 pm
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