In the past, many people have filed their taxes for free with H&R Block. January through April is H&R Block’s make-or-break season due to tax filings. The company brings in enough revenue in the early spring to cover any losses over the rest of the year. 2014 stands out as a year of smart, positive changes at H&R Block.
This year, the company has decided to downsize its unprofitable retail operations and cut down on free tax form preparation. As a result of these changes, there was a slight drop in tax returns prepared in H&R Block offices this tax season. Industry analysts polled by FactSet predict earnings per share of $3.26, quite an increase from $2.42 a year ago. This increase can be attributed to the aforementioned strategic changes at the company.
There are other changes happening within H&R Block in 2014. In April, the company signed a deal to sell its bank. This deal has been in the works for quite some time, and the stock market rejoiced upon the news. This is not to say that the bank is a drag on earnings. Selling the bank frees management from the burden of regulatory oversight on banks, and it gives people the option to buy back even more shares.
Another recent development at H&R Block is their plan to increase revenue as a result of the Affordable Care Act. As the law is implemented, health insurance and taxes are becoming more and more intertwined. Difficulties with connecting consumers to insurers presents an opening for H&R Block to expand its business model beyond tax preparation and financial services.
Despite the good news on the bank sale and health insurance opportunity, the company’s stock is still priced to sell. Get it below cost, before the stock price catches up to these recent improvements.
E-Filing Your Taxes With TurboTax 2013
We are in the midst of the 2013 tax filing season. Every year since 1993; Americans have increasingly used e-filing software to file their tax returns. TurboTax 2013 has perfected the process of contemporary electronic tax filing.
Since the IRS introduced electronic filing in 1990, they have securely processed over 1 billion individually prepared electronic tax returns. The IRS touts e filing for the following benefits —
• The Tax Returns are More Accurate and Complete – TurboTax 2013 does all the math calculating and even compares data from previous year’s filings for consistency. TurboTax is able to determine state taxes where that information is required on a Federal return, you do not need a separate resource for that. You do not have to be an experienced tax filer to use TurboTax2013.
• Secure and Confirmed Delivery of Your Return — TurboTax utilizes state of the art encryption technology for the secure web transport of your tax return. You will receive an email within 48hrs from the IRS confirming receipt of your return.
• Refunds are Processed and Delivered More Quickly — E filed returns that indicate refunds are processed more quickly than paper filed tax returns. TurboTax2013 works seamlessly with your bank and the IRS for faster direct depositing of your refund.
• Ease of Use — There is no simpler, easy to navigate and use tax software than TurboTax2013. TurboTax is intuitive and self-correcting. TurboTax will prepare your Federal and state returns simultaneously, alleviating the need to input the same data on two forms. TurboTax software is written with knowledge of all the divergent state laws and procedures for filing and makes those transparent for the user.
• Peace of Mind — In addition to the 48-hour receipt confirmation by email from the IRS, you will have peace of mind that your e filed return is accurate.
E-files dates for 2013 start with the opening date of January 30. The IRS will begin accepting e filed returns after incorporating all the tax policy and law changes that took effect January 2nd. Some e-file dates are later due to late legislation that requires more extensive system testing and programming. Nevertheless, the IRS is prepared to start accepting electronic returns by January 30th, and will process the biggest volume of e filings by late February-early March. That group includes those who will be claiming energy credits, property credits and other business related tax incentives.
The IRS says that the best option is to file electronically. TurboTax 2013 is the safest, quickest and easiest to use software for e filing. You will be assured to meet the e-file dates and have access to TurboTax’s outstanding customer service and support should you encounter an issue with your return that requires expert assistance. TurboTax is the best selling, most trusted e filing software for a reason, the reason is trust; TurboTax gives its users the assurance of an accurate, securely prepared and delivered tax return.
Quick Facts About the IRS Audit
Getting a letter from the Internal Revenue Service stating you’ve been selected for audit is a taxpayer’s worst nightmare and can create a lot of anxiety.
Sometimes these notices are simple, such as you forgot to sign a document or you made a math error. The more ominous possibilities, however, will question your income, deduction claims, and more.
The IRS definition of an audit states that is simple a review of a taxpayer’s return used to verify the tax amount paid and reported is correct. If you happen to be selected for an audit, the IRS website has videos and guides to help you through the process.
In 2011 alone, nearly 1.6 million people were audited. This is slightly more than 1% of the total returns filed. Three foruths of these were completed by correspondence alone, and only one quarter required a field agent examination (in person.)
On income levels, only 1% of those with an income level of less than $200,000 were audited, while 12.5% of those who made $1 million or more were audited.
A spokesperson for the IRS, Terry Lemons, has said that the majority of taxpayers will never have to worry about an audit because their tax returns are filled out accurately.
While there is no magic equation to how the IRS selects who to audit, TurboTax can help you avoid many of the “red flags,” such as significant differences in income or deductions from those within the same demographic, in your 2012 taxes.