Tax Solutions

It's bad enough we have to pay taxes but to be ripped off getting them prepared and being exposed to a variety of predatory financial scams along the way is quite daunting.

The Treasury Department wants to reduce its workforce while still throwing a bone to the tax preparation industry. Now it is difficult to file a paper return, they are no longer mailed to regular paper filing taxpayers, forms are hard to find in the libraries and difficult for older Americans unfamiliar with computer technology to download or even order online. Eventually, Treasury will dictate that all taxes be filed electronically eventhoug the IRS does not provide an electronic interface with their processing system. Taxpayers must invest in pricey software, entrust their personal finacial information to a paid preparer or try to use one of the 'free file' sites that always turn out to be not so free. A few states offer an electronic interface but tax information is supposed to be freely shared between the fed and every state. Tax returns involving transcient workers or taxpayers living along state borders are often overly and unnecessarily complicated.

Take as an example the firm of H&R Block. The family sold the highly sucessful tax preparation business in 1995, since then the company has endevored to expand their scope by becoming involved with an internet ISP, mortgage finance, various banking options and high interest refund anticipation loans. Henry & Richard Block owned a company focused on customer service and satisfaction, he sold to a bunch of clueless greed driven vultures. If you take your tax information to H&R Block you will encounter an accomplished transcriber and a good salesperson. It will take them about 10 minutes to enter your data then they will begin to entice you with a barrage of financial opportunities. How about a refund loan, a credit card, a refinance, an equity loan or even an investment in H&R Block?. Heck, they are looking at your financial data and they are looking to extract as much money from you as possible.

I worked for the IRS for many years. The Treasury Department paid my way through college. After retiring I gave them a couple of years as a payback.. I was there in 1971 when the first desktop display stations (computers) were brought online. Immediately the talk of a paperless agency was promulgated. Actually, more paper was generated in the form of computer printouts. In the 40 years since then the IRS has been working toward an integrated computer system. The job still is not done. Last year 50% of all e-filed returns were rejected, tax fraud is rife within the e-file system and this year many taxpayers are delayed in filing because the system is behind the curve. The Treasury Department could easily provide immediate interface, honest software and excllent customer service if they were not so compromised by corporate loyalties.

The rich need tax help (lawyers, accountants, experts) and they will pay richly to avoid any obligation. The rest of us only ask for an easy, welcoming, secure venue to share our financial information, be assessed our fair share of taxation and avoid the predation of corporate vultures.

This year the Federal Tax Guide for individuals is intentionally written in a way to be impossible and incomprehensible to individual taxpayers. Professional tax preparers have been warned to reduce the volume of paper returns filed.

I believe every adult American should understand basic finance, including the ability to file their own tax return. Our government should not encourage transciption or corporate intrustion. Banking has long lost it's public obligation of financial instuction, it is now the responsibility of the Treasury to provide interacive educational opportunities, simple tax forums and honest economic guidance.

I still do tax consultation and any client that finds me is lucky but I can do little but be instructive, careful and comprehensive. The burden of tax reform lies with the individual taxpayer. Demand basic financial information, teach it in the schools, ask questions of your banker, tell your congressperson to simplify the tax code and beware all advertising and scams.