Tax Time Is Coming, Where Is Your Information?

[ArcticDiver]

I was reminded today that tax time is coming. At the same time, that tax returns are not always prepared where the consumer thinks. Tax preparation has been outsourced same as many other things. One preparer firm I'm aware of actually does not do tax returns in their office. Instead they take the data from the customer and send it to a contractor in India. The completed tax return is sent back to the US firm which, in turn, gives it to the customer.

While the return may be as accurately prepared in India as in the US I don't think equivalent confidentiality can be guranteed. Examples are rampant in many industries where US laws and standards have been promised but not provided. US firms and individuals have little recourse but to cancel a contract. In the case of a tax return once all the individual's information is compromised it is too late. Effectively there is no recourse.

At the same time it is common during tax season for firms to hire additional contractors/temporary employees. These folks are subject to US laws and standards.

So, if you care about your financial privacy you might want to ask where your tax return is being prepared. In the US you are probably OK. Off shore maybe you'd be better served to use another firm.

[selkie]

I do not trust my tax person at all. Oh yeah I do my own.

[Jeff Pack]

My CPA saves me a bundle and is worth every penny I pay him.

[ArcticDiver]

My CPA saves me a bundle and is worth every penny I pay him.

So? That isn't the subject.

The subject is: Where does he actually have the tax return done? Is he one of those who exports the actual work to a foreign country? Or, is he one who has the actual work done in the US? One has privacy concerns. The other does not.

[CaptnJack]

I do not trust my tax person at all. Oh yeah I do my own.

Me too

[Grateful Diver]

My tax returns used to get done in my house. This year I may have to send it to Zambia ...

... Bob (Grateful Diver)

[Jeff Pack]

My CPA saves me a bundle and is worth every penny I pay him.

So? That isn't the subject.

The subject is: Where does he actually have the tax return done? Is he one of those who exports the actual work to a foreign country? Or, is he one who has the actual work done in the US? One has privacy concerns. The other does not.

It actually is, you get what you pay for. and that statement is all encompassing, from who does the work, how its done, where its done, and the quality of the result. The training from tax preparer, to enrolled agent, to CPA is very different. But then so are the costs.

But then, my taxes are a small novel, and cant be done by a tax preparer anyways.

[ArcticDiver]

My CPA saves me a bundle and is worth every penny I pay him.

So? That isn't the subject.

The subject is: Where does he actually have the tax return done? Is he one of those who exports the actual work to a foreign country? Or, is he one who has the actual work done in the US? One has privacy concerns. The other does not.

It actually is, you get what you pay for. and that statement is all encompassing, from who does the work, how its done, where its done, and the quality of the result. The training from tax preparer, to enrolled agent, to CPA is very different. But then so are the costs.

But then, my taxes are a small novel, and cant be done by a tax preparer anyways.

Nope, actually it isn't . Price charged has very little to do with preparation quality. Spend a little, or maybe a bit more than a little, time with the annual "expose's". Since you don't hire taxes done this really is academic for you. But, overseas preparation apparently isn't restricted to any particular type of preparer.

You might check with Bob. He seems to have found a secure preparer who will maintain privacy in Zambia. Don't know for sure but probably they need the money so maybe you should consider some foreign aid, eh?

Anyway, I just felt obligated to raise the caution flag. What anybody does with it is their business.

[Dusty2]

I always do my own but that really doesn't guarantee safety. Last year when i filed I was informed that someone had already filed using my SSN. It took literally all year and several calls to senator Murry to finally get my refund in Dec. I found that the IRS isn't a very secure system at all. last year there were nearly 9 billion dollars in fraudulent returns filed. This year they sent me a special 6 digit pin to insure that whoever did it last year can't do it again.

If you file online anything you send is vulnerable. Hackers are a very talented and well organized group. Most of which are in eastern europe.

[oldsalt]

I do not trust my tax person at all. Oh yeah I do my own.

A quote from my Dad: "I used to say that of you want a job done right, you have to do it yourself. I found that I can't even trust that help anymore."
-Curt

[Grateful Diver]

Depends on the job ... as the old saying goes "He who represents himself in court has a fool for a lawyer".

Back to the subject at hand ... I did not mean to imply that I send my income taxes to Zambia ... but that the person who usually does them is there right now. She won't be home until May, and so this year I'll have to find someone else to do them for me. I have found someone in Bellevue who I trust, and who has done reputable work for me at a reasonable price in the past. So this year, my taxes will be prepared in Bellevue ...

... Bob (Grateful Diver)

[ArcticDiver]

Depends on the job ... as the old saying goes "He who represents himself in court has a fool for a lawyer".

Back to the subject at hand ... I did not mean to imply that I send my income taxes to Zambia ... but that the person who usually does them is there right now. She won't be home until May, and so this year I'll have to find someone else to do them for me. I have found someone in Bellevue who I trust, and who has done reputable work for me at a reasonable price in the past. So this year, my taxes will be prepared in Bellevue ...

... Bob (Grateful Diver)

I forgot, sorry.

[nwbobber]

I take mine to a CPA also. While I used to be quite adamant about doing them myself, a friend twisted my arm till I said uncle, and I gave the CPA a try. I can tell you, if your taxes are anything more than simple, the pros will save you money. I am quite sure the guy I hired IS the guy who handles the preparation, and none of my info leaves his office. I would do it myself if we were talking H&R Block.

[Jeff Pack]

yup!

[ArcticDiver]

Actually one of the people who prompted this Yellow Flag is a CPA with a large tax practice.

From a privacy viewpoint I'd not be very worried about H&R Block. I'd ask the question: "Who is actually going to prepare this tax return?" and "Who will have access to the files?". But, if I understand the Block thing it is done in house by the person the taxpayer talked to, or an in-office associate.

Anyway, I made my estimated tax payment today and my in-house tax preparer is gathering information so I'm set. Just trying to share my knowledge with others who have privacy concerns.