If you had $10,000 net profit, go with the CPA and he'll
reduce your net profit to zero real quick, (;> ,)

efd

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If you had $10,000 net profit, go with the CPA and he'll
reduce your net profit to zero real quick, (;> ,) efd

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"Mark Rigotti, CPA" <rigotti[at]wideopenwest.com> wrote:
- quote -

In the interest of perspective, I offer (humbly) <big grinthe following:

As a CPA, EA and HRB tax preparer, here is some information
as a partial response to your comments.

Many of the Block employees are EAs, some are CPAs while the
rest (many) are ordinary folk who have undergone Block
training and have passed an examination. Block also has
designated EAs to represent clients before the IRS.

The beginner's course is 13/26 sessions of 8/4 hours. There
are 7 quizzes, 4 graded reviews and a final examination. The
assigned homework requires at least a similar number of
hours. Much of the work involves preparing paper returns.
The material is geared to the preparation of all aspects of
a 1040 and the local state return. (Other states are done by
an all-states specialist in each district.) Complicated
returns or Partnership/Corporations are sent to the "Premium
Office"/"Executive Office".

In order to be eligible for re-hire each year, each employee
must take either a minimum of 24 or 30 class hours of other
Block courses with an examination at the completion of the
course. There are about 45 of these courses with varying
hour requirements. The courses also satisfy EA
certification requirements.

At the beginning each year and generally before being
allowed to prepared a return, the employees must complete a
set of 40-45 tax problems of increasing difficulty using the
TPS (Block's 1040 preparation software). There are school
answers and exception results usually must be defended.

Of course, there will regional or district variations to
what I have described.

I found the Block preparation much better for actually doing
a return than the two-three hour college courses in taxation
and the Becker review materials that constituted part of the
sitting requirement for the CPA exam which I passed the
first time with high grades.

In the past, I have expressed my low esteem of the EA exam
but not the knowledge and preparation of the Enrolled Agents
themselves.

After expressing the above, I am well aware of some poorly
prepared returns by Block personnel. It happens. But the
Block personnel are not the only ones who sometimes fail. I
have seen and I am aware of fraudulently prepared returns by
CPAs. <grin> (AICPA kicks them out with some regularity)

Finally, if I reviewed a return as you described below, I
would have advised the client to take it back to Block.
They would have corrected it without charge and paid any
penalties and interest. An exception to this responsibility
might occur if preparer had inserted "preparation notes"
describing a suspected set of facts.

Moderator: I reviewed and I changed one word.

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"film_fan_1" <slapper2000[at]hotmail.com> wrote:

- quote -

Just one mans' opinion HRB is not licensed in Michigan nor
in - I'd venture to say most states - unlike CPAs who are
licenses by the state, Attorneys who are also licensed by
the state and EA who are granted practice/ licensed (sorry
guys and gals I'm not familiar with your process) directly
by the IRS.

I know that CPAs and EAs are required to pass standard
national exams and to obtain a certian level of continueing
education each and every year. The individuals at HRB are
not.

Sorry for the soap box but I just amended 3 years worth of
HRB returns for rental properties taking over 6 digits in
repair costs on properties purchased for 30-50k each and am
a bit tiffed at the moment.

--
Regards,

Mark Rigotti

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film_fan_1 wrote:

- quote -

CPA or EA.

- quote -

Everything even remotely related to the business activity.
Everything else.

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"film_fan_1" <slapper2000[at]hotmail.com> wrote:

- quote -

$10,000 in net profit could be a million in sales and
$990,000 in expenses,,,not enough information

go with the CPA...

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A relative and I have an ebay seller business/partnership,
in 2004 we made about $10,000 in net profit. Since we're
probably going to owe taxes we want to get our taxes done by
a pro, should we go to H&R Block or a CPA, we don't have
much money as we are still trying to grow our business. What
information should we bring to them?

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