Just as the online tax filing companies have their IRS-sponsored Free File Alliance, our company, 800-TAX REFUND, Inc., recognizes a need for the rest of the tax industry to offer taxpayers a more sensible approach to online filing.

The prevailing marketing strategy of today's online filing companies tends to appeal to the consumer's desire for instant gratification, derived from the convenience and cost savings offered through online filing, without considering the potential downstream costs of taxpayer-initiated errors or omissions. Also prevalent in this strategy is a 'more forms are better' mindset among online filing companies, which, as any tax professional would agree, merely serves to put the 'do-it-yourself' taxpayer at increased risk of error or audit due to those forms' complexities.

Our opposing marketing strategy, developed since 1990 while preparing and processing tax returns for taxpayers, practitioners, and financial institutions, is based on the premise that taxpayers will ultimately realize better value for their dollar by using sound and consistent professional tax services.

One needs only to compare the key promotional messages of two online filing companies to understand these opposing strategies:

In a TurboTax television commercial aired this past tax season, when a TV wife expressed concern that she likes to have her tax return professionally reviewed, her husband replied "But TurboTax checks everything for you!"

800-TAX REFUND, Inc., on the other hand, was for several years the only online filing company promoted on IRS's web site that asked taxpayers..."Is Online Filing Right For You?"

We pose that question to taxpayers because, like many of our readers, we are first and foremost a tax preparation firm. We understand that taxpayers will realize better value for their dollar by having their taxes professionally prepared, reviewed, and/or filed. We added an online filing option for taxpayers seven years ago and discovered it to be a viable mechanism to steer future tax clients toward our professional services.

In other words, online filing is used to help our company establish a relationship with the taxpayer. This is what we hope the Online Filing Cooperative (OLFC) will do for your organization.

Why should your organization be paying attention to the online filing industry? Because 40 million of the 140 million returns received by IRS in 2011 were filed by individuals online. And the numbers are still growing.

Practitioners - How can online filing and, more specifically, the OLFC steer future tax clients toward your professional tax services?

Financial Institutions - How can online filing and the OLFC help establish and/or strengthen relationships with depositers?

 

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