Thursday, September 6, 2012

TIPS FOR A SUCCESSFUL TAX BUSINESS

KEYS TO A SUCCESSFUL TAX SEASON??
In the past few years, we have have been studying the tax preparation industry/market. We have analyzed the tax partner successes and found many interesting facts due to which many tax partners are successful. These tax partners, had between 200 - 250 returns. Many tax partners contribute their success to knowledge, software etc. However, here are a few tips we have studied that contributed to their successful tax year

TIP #1) EARLY SIGN UP
In our study we found out that 70% of tax partners who signed up early were able to have a greater financial success than the late comers. Of the 70% tax partners who did sign up early,  60% of the tax partners were able to have a smoother onboarding process where they had the time to be trained in the software, understand the processes much better and also spend time d in marketing strategies to build customer awareness in their geography. . A tax preparer who signed on in September had a 15%-20% higher earning potential than the than the tax partner who signed up in October . So, sign up early and increase your paycheck by 20%

TIP #2) MARKETING STRATEGY
This strategy goes hand in hand with the earlier tip of Early Sign on. The tax partners who signed up early were able to invest more time and resources to creating customer awareness of their services. They had more time to talk to family, friends and spread the word about their services through various other avenues like church, local businesses and through various other networking groups. Also, these partners had already started advertisng that they were giving a refund estimate in Thanksgiving using the last paycheck. Using these tactics, they were able to build a bigger customer base early on thus have more customers come to  them during tax season.

TIP #3) TRAINING
Most tax partners who had higher tax returns were able to do so because of great preparation which included training. The training was for the software, process, check printing, IRS guidelines etc. These tax partners signed on early so that they could have access to our Training portal which contains tutorials and learning guides for every process. These tax partners not only took advantage of the portal but also reached out to us personally for one on one sessions. With time in their favor due to the early sign on process they were able to use their valuable time to educate themselves and also were able to provide better customer service. These tax partners also find themselves with a better customer retention rates. Their customers come to them year over year due to their knowledge.

FOR A SUCCESSFUL TAX SEASON CALL MAXIM TAX SERVICES AT 954-362-9927!!


Maxim Tax Services
954-362-9927
www.maximtaxservices.com

Monday, May 7, 2012

START PREPARING FOR 2012 TAXES

You are finally breathing a sigh of relief after completing your 2011 taxes. However, you feel that you overpaid or were  not able to take advantage of all the deductions. Well, you can avoid this next year when you are ready to file your taxes for 2012. However, to make sure you do not overpay or are not overlooking any deductions you have to get your ducks in a row this year. Here are the following strategies you need to follow to make sure you have a smoother tax filing:

1) Check your Withholding &  Payroll Deductions - If your Refund check was big this year, you can adjust you paycheck withholding so that you can get a bigger paycheck. If your withholding is adjusted correctly you don't have to wait till the end of the year for your money rather right away. However, if you owed taxes, you can adjust your withholding to be higher so that you don't have to write a big paycheck to the IRS at the end of the year.Make sure your Paycheck deductions like Health Insurance, Retirement Contributions etc are being correctly withheld and reported by your employer. Any of these deductions reported incorrectly could make an impact on your Tax liability at the end of the year. It is easier to get this fixed early on than later.

2) Organize your 2011 Tax Returns and all future Tax Documentation & Receipts  - Make sure your 2011 Tax Returns and all the supporting documents are kept in a secure place. In case, you get a notice from the IRS, if you have all your paperwork available to you it will be easier for correspondence. Also, for 2012 return it will prove as a good reference tool. Organization is the key to a better prepared 2013 Tax Return. Make sure you keep all your documents related to 2013 tax returns in one place. Make sure all family members know of this place as well so that all your documents are easier to find and you do not miss any important information for your record keeping. Ex. Charitable Contributions Receipts, Sales Tax Receipts etc. As long as it is all in one place it does not make a difference if it is in a file, shoe box or a drawer. Consistency and persistence pays off during tax time

3) Strategic Itemized Deductions & Credits - If you were not able to itemize your deductions this year or missed the itemized deductions by just a few dollars, now is a good time to plan ahead and make sure you are able to take full advantage of all the deductions and credits available to you. See Schedule A for all the expense categories applicable to you and make sure you are taking full advantage of it. For example, by making an extra mortgage payment before the end of the year, making sure you pay your medical bill ahead of time, charitable donations you can make sure you will take full advantage of Itemized Deductions.

4) Update yourself with any tax law changes - IRS updates its website the whole year about any tax law changes to affect your Tax Returns. Check the IRS website regularly to make sure if any change is applicable to you. For example, after 2012, the American Opportunity Tax Credit which is a credit for higher education expenses will no longer be valid. This credit allows you to get a maximum of $2500 of tax credit. To take full advantage it might be a wise idea not only to pay 2012 tuition but also pay 2013 tuition in advance to get the maximum advantage of this tax credit.

5) Let a Tax Professional guide you - Choose a tax professional early on who can help you be more prepared for doing your tax returns. If you work with a professional early in the process you will save yourself a lot of frustrations during tax time regarding strategies or last minute issue. Choosing a tax professional is a very serious issue and should be done very carefully. Let Maxim Tax Services help you with this decision. Call us at 954-362-9927 for more information or visit us at www.maximtaxservices.com.


Tuesday, April 24, 2012

MISSED TAX DEADLINE – APRIL 17, 2012 – OPTIONS AND HELP FOR TAXPAYERS


The last date to file your tax returns was April 17, 2012 and if you missed the deadline here are some options that might help you:
  1. File your taxes ASAP- If you owe taxes files your taxes right away. The longer you wait to file your taxes the more you have to pay the IRS in interest and penalties. So, to avoid the high fees the sooner the IRS receives the return the better
  2. EFILE your taxes – To make sure the IRS receives your tax filing soon, EFILE your taxes which can be done till October 15, 2012
  3. File your return for free – If your income was less than $57,000 you can qualify to file your return for free through IRS Free File. For taxpayers who earn more than $57,000 and can file their own tax returns, you can use the Free fillable forms on IRS' website which allows you to do basic math calculations to complete your taxes.
  4. Pay the most you can of your taxes – For taxpayers who owe the IRS, it is wise if you can pay as much as possible even though it is less than what you owe. After you pay the most, apply for Installment Agreement for the remaining balance. Taxpayers who file and pay late have to pay a penalty and interest. This will keep your tax penalty low.
  5. Installment Agreement – Taxpayers who owe money and cannot afford to pay the full amount at once, can request a payment agreement with the IRS. You can file by mail using form 9465 or you can do it online on irs.gov in the IRS Online Payment Agreement Application section. Although, the installment agreement will not waive the interest charges you owe but the IRS can reduce the interest and penalty charges if there was a reasonable cause associated with low payment.
  6. You may be due a Refund - You may be due a Refund from the IRS even if your income in below the normal filing requirements due the amounts withheld from your wages, quarterly estimated payments or due to special credits. For taxpayers who are due a Refund, you will not be charged any interest and late payment penalties but can forfeit your refund if you do not file your return within three years.