I'm going to start doing my tenants' tax returns!

I'm kidding, but only barely. I was reading a piece in Mother Jones about predatory tax prep places that open in low-income neighborhoods to grab their share of the EIC etc from the working poor. They are a business that really only has to operate about 4 weeks of the year but they pull in $4 Billion in revenue with fees, interest charges and more fees...to do returns so simple a child could do them...

While I can somewhat see why PayDay Lenders charge so much - theirs is a VERY risky business, their fees are posted right up front and no one forces anyone into their stores - these tax return places seem more diabolical to me. And they often lie about their overall fees and what they are doing.

It got me to thinking...maybe I should start doing my tenants' taxes. I could save them the fees and high interest and ensure I get paid MY share of their refund - back rent and such...

A few minutes online with Turbotax is all it would take...

I wonder if it's illegal?

In order to become a Registered Tax Return Preparer, a person was required to be age 18 or older, to register with the IRS, and to have a valid Preparer Tax Identification Number (PTIN). A Registered Tax Return Preparer was to have passed a competency test covering tax law issues, individual tax return preparation and ethics. He or she was required to pass a tax compliance check conducted by the IRS. To maintain the designation, a Registered Tax Return Preparer was required to complete 15 hours of continuing education courses each year and renew his or her PTIN annually. Finally, the Registered Tax Return Preparer was required to adhere to ethical standards set out by the Department of Treasury's Circular 230

Cost is about 65.00 a year to maintain your PTIN.

A number of years ago I used to help several of my tenants do their tax returns. Some hadn't been filing because their income was low, but I was able to show them how to get the earned income credit. They were very grateful.

Once I was fooled by the large refund a tenant was to get. She owed me money, and I thought that her refund might be able to save her from eviction. However, it turned out she was delinquent on a student loan, and the refund was seized for that. She was evicted.

For quite a few years after I was separated and then divorced, I continued to do the tax return for my ex-husband. I knew enough about his spending habits that I was able to get him much larger deductions for work expenses and save him a lot on taxes. I also was able to make sure that we never both tried to claim the same child as a dependent.

It also was an easy way for me to find out how much he was earning, which he would never have told me otherwise.

My Dad did it after he retired. He made more in a few months than he had working as an engineer.

There is no requirement for you to be a registered return preparer or continuing education. This was thrown out by the courts.

Really???? I know how to do basic taxes, no course needed.

Marv,

W, I think about this every year when promises of paying with their refund start up.

A CPA can have the IRS check delivered to the CPA rather than the tax "payer". CPA cashes the check for the client and holds the rent due.

A CPA or any preparer cannot have any money withheld from taxpayers refund. A preparer cannot have his/her fee sent to his account either.

You do not have to be certified to prepare taxes for fee. You just have to sign the return as paid preparer. you should also have a PTIN number.