Advice for Financial Health
Lecker, Martin. “Tax time: What’s the best
option for you?” 25-26 February, 2023.
Interview with Pat Consolati
Excerpt from The Berkshire Eagle
“You want a tax preparation service that is honest and does not take advantage of their clients by promising something that they cannot or should not deliver,”
TIPS FOR FINDING A TAX PREPARATION SERVICE
If you do not qualify for the VITA program and still do not want to prepare you own taxes, the next step is to find a tax preparation service. But, what should you look for?
Patrick Consolati, owner of Consolati Tax Prep in Lee, recommended that you want to find a tax preparation service that has an established record dealing with personal income taxes. His family business extends three generations where he sees not only return clients, but their children and grandchildren, as well. That’s why you want to look for a tax preparation service that has an excellent reputation in the community.
Having an experienced tax preparer is also important. “You don’t want to use a service, where the preparer has just completed a few weeks taking a tax preparation course,” Consolati said. “You want a firm with experienced tax preparation professionals.”
He gave an example of a client who was reimbursed for a completed class as part of a grant, but was given a form generally used for people who incur a business expense. Given his experience, he knew this reimbursement should be placed under “Other Income.” Sadly, some tax preparation services will put this on a Schedule C form primarily used for sole proprietorships – and add on a surcharge for their time.
Finding an ethical service is as important as experience. “You want a tax preparation service that is honest and does not take advantage of their clients by promising something that they cannot or should not deliver,” Consolati said. With over 20 years in the business, he said he would never jeopardize his reputation by preparing taxes that do not follow the letter of the tax codes, and he has turned away clients who “want him to look the other way.”
In addition, you don’t want to use a tax preparation service that makes claims that it cannot keep. “If a business promises you something that is too good to be true, it probably is,” he warned.
Consolati said he is also troubled by tax preparation firms that will advertise getting you an advance on your tax refund from their company’s funds, so you do not have to wait for the IRS to deposit it into your bank account. Then, upon receipt of your tax refund, you pay back this advanced money.
However, they fail to mention two things. First, they are charging you interest on that advanced payment or an additional fee, as if this was a loan. Second, with E-filing, many refunds take only 15-20 days, so it is not necessary to incur these unnecessary expenses.
TIPS FOR FINDING A TAX PREPARATION SERVICE
If you do not qualify for the VITA program and still do not want to prepare you own taxes, the next step is to find a tax preparation service. But, what should you look for?
Patrick Consolati, owner of Consolati Tax Prep in Lee, recommended that you want to find a tax preparation service that has an established record dealing with personal income taxes. His family business extends three generations where he sees not only return clients, but their children and grandchildren, as well. That’s why you want to look for a tax preparation service that has an excellent reputation in the community.
Having an experienced tax preparer is also important. “You don’t want to use a service, where the preparer has just completed a few weeks taking a tax preparation
course,” Consolati said. “You want a firm with experienced tax preparation professionals.”
He gave an example of a client who was reimbursed for a completed class as part of a grant, but was given a form generally used for people who incur a business expense. Given his experience, he knew this reimbursement should be placed under “Other Income.” Sadly, some tax preparation services will put this on a Schedule C form primarily used for sole proprietorships – and add on a surcharge for their time.
Finding an ethical service is as important as experience. “You want a tax preparation service that is honest and does not take advantage of their clients by promising something that they cannot or should not deliver,” Consolati said. With over 20 years in the business, he said he would never jeopardize his reputation by preparing taxes that do not follow the letter of the tax codes, and he has turned away clients who “want him to look the other way.”
In addition, you don’t want to use a tax preparation service that makes claims that it cannot keep. “If a business promises you something that is too good to be true, it probably is,” he warned.
Consolati said he is also troubled by tax preparation firms that will advertise getting you an advance on your tax refund from their company’s funds, so you do not have to wait for the IRS to deposit it into your bank account. Then, upon receipt of your tax refund, you pay back this advanced money.
However, they fail to mention two things. First, they are charging you interest on that advanced payment or an additional fee, as if this was a loan. Second, with E-filing, many refunds take only 15-20 days, so it is not necessary to incur these unnecessary expenses.