The pain at the pump continues. Like everything else, gas is expensive, groceries are expensive, medical care is expensive...and...(phew)...I know there's more out there!!! Well, I'm on your side so you save money when you fill up your car or grocery cart. One this is for sure it's all about timing.
First things first, is there any way to get cheaper gas? Well, Gasbuddy.com ways buy mid-week, but not mid-day. Gas stations like to raise up their prices mid-morning or mid-afternoon so those are typically the worst times to buy gas.
What about groceries? Consumers' Checkbook says the trick is finding the cheapest store in your area. Even if it's out of the way, you'll likely save money. In some cases, there are some chains that will be at least 10-15 even 20% less expensive.
My favorite pass time...dining out. You'll find most deals on slow Mondays after the weekend rush. And this might sound strange but consider sitting at the bar. Consumer specialists say a lot of higher end restaurants are realizing the appeal of casual food so they're creating special areas inside their restaurant like a mini restaurant within a restaurant where the food is more casual and certainly cheaper.
What about big ticket items, like that flat screen t-v you've been eyeing? Believe it or not even major stores are willing to haggle these days... especially if you shop by phone. Stores really believe you will go some place else if all you have to do is hang up the phone and dial another number.
Same thing goes for hotels. Give 'em a call from the parking lot and ask for a better deal. You can even save thousands on a car.... if you know when and where to shop. Most times in car buying, the end of the month or end of a model year is the best time to catch a deal. And if at all possible, skip the sales floor. Usually, the Internet manager can off you a good price on a set of brand new wheels.
Consumer experts say the best way to get a good deal is to do your homework. Know what you're buying, what it costs at other stores, or whether it's a big seller.
Monday, March 31, 2008
Car Sale Scam
This email was provided to me by one of the thousands of 2news viewers out there that would like to alert you to watch out for scams. This one is typical of a scammer trying to separate you from your money:
Hello , Thank you for your interest in my vehicle as I know you have many choices . The 2005 Cadillac Escalade is in excellent condition, never damage or repair and with a clean title.Sale price is $9,900.00 USD which includes shipping costs anywhere in the US. I'm am right now in Glasgow Scotland i moved there because i have recently divorced with my wife and i come back to my home country. The vehicle will be shipped from Billings Montana. There are no other costs regarding this transaction. The price is low because i have some personal problems, if you are interested email me back and i will explain the process to get the vehicle. Thank You,
Hello, Before leaving US I had prearranged the deal with WorldPay so my presence in US isn't necessary. A few words about the process: - You need to send me your full name , full address and phone number you will make a deposit of $2500 to the WorldPay trust account. - In the same day when you will make the deposit i will ship the vehicle and i will give you the tracking number. - You will receive the vehicle and you have 5 days to inspect the vehicle ( mechanic, dealer and drive the vehicle). - If you will keep the vehicle then you will send the rest of the money if not then you will get your full amount back and the vehicle will be ship back. - The vehicle will come with the bill of sale , bill of lading , maintenance records , title ( signet by me and ready to be registered to your name) . If you want to buy the vehicle then email me back your info to start the process. The vehicle is not available to see there because the shipping company don't allow any visit or else, so you need to agree with the process. Regards! William
This email lets me know that William will never send the car. He just wants the initial payment up front and leave the consumer holding the bag...or the supposed keys! Big red flag, doing business with individual seller who's located overseas. You could probably find what you're looking for in your own city. NEVER send money upfront.
Beware of emails like this...solicited or unsolicited. If at all possible, buy a car that you can test drive on the spot. If you happen to buy a used vehicle, make sure you get a Carfax report from the dealer or run one yourself. Another good suggestion is to bring a mechanic you trust to look at the car. Used cars are sold "as-is" so once you drive it off the lot...it's yours. Thankfully, this viewer didn't fall for this trap.
Hello , Thank you for your interest in my vehicle as I know you have many choices . The 2005 Cadillac Escalade is in excellent condition, never damage or repair and with a clean title.Sale price is $9,900.00 USD which includes shipping costs anywhere in the US. I'm am right now in Glasgow Scotland i moved there because i have recently divorced with my wife and i come back to my home country. The vehicle will be shipped from Billings Montana. There are no other costs regarding this transaction. The price is low because i have some personal problems, if you are interested email me back and i will explain the process to get the vehicle. Thank You,
Hello, Before leaving US I had prearranged the deal with WorldPay so my presence in US isn't necessary. A few words about the process: - You need to send me your full name , full address and phone number you will make a deposit of $2500 to the WorldPay trust account. - In the same day when you will make the deposit i will ship the vehicle and i will give you the tracking number. - You will receive the vehicle and you have 5 days to inspect the vehicle ( mechanic, dealer and drive the vehicle). - If you will keep the vehicle then you will send the rest of the money if not then you will get your full amount back and the vehicle will be ship back. - The vehicle will come with the bill of sale , bill of lading , maintenance records , title ( signet by me and ready to be registered to your name) . If you want to buy the vehicle then email me back your info to start the process. The vehicle is not available to see there because the shipping company don't allow any visit or else, so you need to agree with the process. Regards! William
This email lets me know that William will never send the car. He just wants the initial payment up front and leave the consumer holding the bag...or the supposed keys! Big red flag, doing business with individual seller who's located overseas. You could probably find what you're looking for in your own city. NEVER send money upfront.
Beware of emails like this...solicited or unsolicited. If at all possible, buy a car that you can test drive on the spot. If you happen to buy a used vehicle, make sure you get a Carfax report from the dealer or run one yourself. Another good suggestion is to bring a mechanic you trust to look at the car. Used cars are sold "as-is" so once you drive it off the lot...it's yours. Thankfully, this viewer didn't fall for this trap.
Wednesday, March 26, 2008
Flood Contractor Scams
A Germantown woman, swamped by last weeks flooding, narrowly escapes some scammers looking to make a quick buck off of her misery. So she turns to two with this warning for other homeowners who might run into high pressure salesmen.
"no uniforms, no business cards no...no nothing, no nothing."
Krystyne Edmondson says that was her first clue something was wrong. She tried calling two local companies -- but they were booked. So Krystyne logged on to the Internet to find help.
"they were like we can come out today and i was like oh, what luck! got somebody to come out right now in all this flooding."
Instead... she says she saw trouble pulling into her driveway.
"he's in a personal vehicle and he just has a not enclosed trailer on the back of his van and he had new york license plates so i thought that's kinda odd."
Krystyne says he gave her the song and dance and came up with a price.
"he said you know he's going to cut us a deal and the best he could do was 47-56, four thousand seven hundred fifty six dollars for this."
Minutes later, he took 500-dollars of the price and then the final offer.
"well then he comes back with well i tell you what, if you don't tell my boss, and this that and the other, I'll do it for three thousand."
Krystyne eventually got the contractor to leave. He left this card, with a 516 area code for a phone number that's linked to Long Island New York. Krystyne says the second contractor was from Massachusetts and had sang the same song as the new yorker.
"and he was like i can tell by looking at this job this is about 12 hundred, but i gotta be paid right now."
Krystyne says it was her gut that was telling her something wasn't right. Thankfully, she did not lose thousands of dollars to those fly by nighters. Before you hire a contractor, check with the better business bureau first, to get some company history. You should also ask to see some form of identification. Plus, ask for them to prove that they are licensed and bonded. If at all possible, pick a company that's in the Miami Valley. Your chances of getting the sham will decrease drastically.
"no uniforms, no business cards no...no nothing, no nothing."
Krystyne Edmondson says that was her first clue something was wrong. She tried calling two local companies -- but they were booked. So Krystyne logged on to the Internet to find help.
"they were like we can come out today and i was like oh, what luck! got somebody to come out right now in all this flooding."
Instead... she says she saw trouble pulling into her driveway.
"he's in a personal vehicle and he just has a not enclosed trailer on the back of his van and he had new york license plates so i thought that's kinda odd."
Krystyne says he gave her the song and dance and came up with a price.
"he said you know he's going to cut us a deal and the best he could do was 47-56, four thousand seven hundred fifty six dollars for this."
Minutes later, he took 500-dollars of the price and then the final offer.
"well then he comes back with well i tell you what, if you don't tell my boss, and this that and the other, I'll do it for three thousand."
Krystyne eventually got the contractor to leave. He left this card, with a 516 area code for a phone number that's linked to Long Island New York. Krystyne says the second contractor was from Massachusetts and had sang the same song as the new yorker.
"and he was like i can tell by looking at this job this is about 12 hundred, but i gotta be paid right now."
Krystyne says it was her gut that was telling her something wasn't right. Thankfully, she did not lose thousands of dollars to those fly by nighters. Before you hire a contractor, check with the better business bureau first, to get some company history. You should also ask to see some form of identification. Plus, ask for them to prove that they are licensed and bonded. If at all possible, pick a company that's in the Miami Valley. Your chances of getting the sham will decrease drastically.
Monday, March 24, 2008
Truckers Slowing Down?
That's right, truckers aren't driving as fast on the nation's highways. Fuel costs, not the highway patrol, have caused truckers to back off the gas and slow down. Trucking industry officials say slowing a truck down from 75 to 65 miles per hour saves them more than a mile a gallon. That's big when you realize most trucks average from five to eight miles a gallon on diesel fuel. Diesel's at a national average of almost four dollars a gallon, up from $2.74 a year ago.
Drinking Age Debate
Lawmakers in some states are considering the saying "If you're old enough to fight, you're old enough to drink." Several Legislatures, including Kentucky, South Carolina and Wisconsin are considering bills that would lower drinking ages for military personnel only. However, the move is facing a lot of opposition. A recent Gallup Poll shows 77% of Americans don't want to lower the drinking age from 21.
So, what do you think. At 18, young men enter the selective service and if need be, drafted to fight a war. They can cast their first official ballot at that time as well. Can 18 year olds have a legal drink too? I also ponder a report I heard (and I can't remember the network now) about how binge drinking is running rampant because 18 to 20 year olds are getting drunk, at home and before they go party, because they can't go to the bar and get served.
This is sure to raise some debate.
So, what do you think. At 18, young men enter the selective service and if need be, drafted to fight a war. They can cast their first official ballot at that time as well. Can 18 year olds have a legal drink too? I also ponder a report I heard (and I can't remember the network now) about how binge drinking is running rampant because 18 to 20 year olds are getting drunk, at home and before they go party, because they can't go to the bar and get served.
This is sure to raise some debate.
Wednesday, March 19, 2008
Teacher License Fee Fight
It wasn't in the lesson plan, but local teachers are digging deeper into their own pockets to teach. Most are having a hard time adding up their new licensing fees. According to the Dayton Education Association, the new teacher license fees are simply unfair and astronomical.
"You know, I wrote a little letter to the ode said that I thought that Ohio has become a hostile environment for teachers."
Pat Lynch says teachers are already under the gun to improve grades and test scores. However, before they can get into the classroom, they have to pay for their teachers license. It's something Lynch says used to be affordable.
"So over the five years it was 60 dollars, now it's five years 200 dollars, a 233% increase."
Lynch says the Ohio Department of Education didn't give teachers any notice the fees were going up so quickly.
"My biggest problem with it, first of all, it was a stealth deal. No one had heard anything about it, rates going up until close to the end of February and March first was the date that they were going up."
The main reason behind the increase -- background checks, performed by law enforcement for the ODE. Lynch believes, and Carl Wick from the ODE agrees, it's using the extra money to offset costs.
"I'm not happy about it either but we had no alternative because state laws require that we recover all operating expenses associated with a license granting agency."
Carl Wick, an at large member of the ODE says the state must process new licenses in a timely manner. Plus, it was forced to raise fees after Governor Ted Strickland asked them to cut 100-million dollars from their budget. Lynch wonders why the ODE couldn't wait until a later date to slap the increase on educators.
"And the problem was that if we delay it, all of their requests for new licenses or renewing licenses would be delayed because we wouldn't have had adequate resources and money to be able to process those."
The new license fees are for all Ohio teachers. Only three other states have higher licensing fees...New Jersey, Hawaii and New Hampshire. Turn To 2 has also found a new bill that was introduced in the Ohio house. It's House Bill 507. If passed, the legislation would allow teachers to pay license renewal fees in annual installments and to allow a refundable credit against the income tax for educator licensing fees and educator-paid criminal records check fees.
"You know, I wrote a little letter to the ode said that I thought that Ohio has become a hostile environment for teachers."
Pat Lynch says teachers are already under the gun to improve grades and test scores. However, before they can get into the classroom, they have to pay for their teachers license. It's something Lynch says used to be affordable.
"So over the five years it was 60 dollars, now it's five years 200 dollars, a 233% increase."
Lynch says the Ohio Department of Education didn't give teachers any notice the fees were going up so quickly.
"My biggest problem with it, first of all, it was a stealth deal. No one had heard anything about it, rates going up until close to the end of February and March first was the date that they were going up."
The main reason behind the increase -- background checks, performed by law enforcement for the ODE. Lynch believes, and Carl Wick from the ODE agrees, it's using the extra money to offset costs.
"I'm not happy about it either but we had no alternative because state laws require that we recover all operating expenses associated with a license granting agency."
Carl Wick, an at large member of the ODE says the state must process new licenses in a timely manner. Plus, it was forced to raise fees after Governor Ted Strickland asked them to cut 100-million dollars from their budget. Lynch wonders why the ODE couldn't wait until a later date to slap the increase on educators.
"And the problem was that if we delay it, all of their requests for new licenses or renewing licenses would be delayed because we wouldn't have had adequate resources and money to be able to process those."
The new license fees are for all Ohio teachers. Only three other states have higher licensing fees...New Jersey, Hawaii and New Hampshire. Turn To 2 has also found a new bill that was introduced in the Ohio house. It's House Bill 507. If passed, the legislation would allow teachers to pay license renewal fees in annual installments and to allow a refundable credit against the income tax for educator licensing fees and educator-paid criminal records check fees.
Monday, March 17, 2008
Taxation Frustration
I want to bring you the story of a viewer who got the runaround with the Ohio Department of Taxation. He shares the same name with his deceased father and that's where the problem started. He has a step you can take to get some assistance...his story is below.
Wednesday, March 12, 2008
University Insurance Fight
A Tipp City teen turned to 2 after fighting with bowling green state university officials after they suggested she should sign up for the university's insurance plan. Lauren Johnson is now attending another college. Grades didn't keep her from going to the college of her choice but it was her family's insurance plan that did. I got state lawmakers involved and we're getting results.
"we have bipartisan support, that's always encouraging."
What Ohio Representative Diana Fessler is talking about is house bill 495. If it becomes law, state universities would not be able to require students like Lauren Johnson to purchase the institutions health insurance plan. Johnson planned to attend bowling green until the university told johnson her families health insurance policy didn't meet their criteria.
"they said that the deductible of 25-hundred dollars was too expensive and that they made this policy so people like student's wouldn't have to spend as much money if i were to have an accident on campus."
State Representative Diana Fessler.
"and when lauren enrolled in, attempted to enroll she was confronted with the decision on the part of the university and said sorry this won't due, you're going to have to up the ante and either change your personal policy or buy into what we want you to have."
Turn to two and the Johnson family notified Fessler about the problem...and she went to work.
"my initial thought was that was the university profiting from the forcing the family to buy into the policy that they preferred the student would have."
Fessler is investigating the money relationship between bgsu and the insurance company and says it doesn't look good.
"this is not a private institution it's a government school, trying to dictate to a family what they believe the family should have in terms of coverage, healthcare coverage for their own family member....i think that's highly problematic."
Fessler says cost is a factor. The Johnson family told Rep. Fessler if they signed up for the university's plan, it would cost them an extra five thousand dollars a year -- not including Lauren's tuition, room and board.
"i did ask the university to send me all the documentation you have, how you finally decided that the expectation you now have for students is reasonable and necessary and they told me at that time they didn't have any paperwork of that nature."
House bill 495, is now assigned to the insurance committee. If it gets out of committee, Lauren and her parents may get to testify before state lawmakers. Fessler says she will also work with Lucas county representative Barbara Sears on the issue until the end of her term.
"representative sears is all over this issue, so from here on out, we're going to be working collaboratively on this bill because she has faced this in her own district."
Since introducing house bill 495, Fessler now has a meeting with an ohio state university lobbyist. Ohio State and Ohio University are just a few other state schools with an insurance requirement.
Tuesday, March 11, 2008
Gas Prices...OUTRAGEOUS
As you made the drive home tonight, you may have been shocked at the prices at the pump. Gas prices in the Miami Valley went up as high as $3.45/gallon. The price hike comes as oil hit a new record of $110 a barrel.
Industry insiders say it's the refineries that are causing all the trouble with gas prices. Others blame taxes on the gas and who we're getting it from. No matter the cause, consumers are feeling the pinch on their purses and wallets.
One thing is for sure, prices are partially set by supply and demand. I'm not just talking about U.S. demand but also world demand. It's one of those basic marketing principals many of us learn in middle or high school. My advice, time to start carpooling! I know many of you would love to sound off about our oil and gas issues....so here you go.......
Monday, March 10, 2008
IRS Audit E-Mail
Another new scam brought to the attention of the IRS contains features not previously seen by the IRS. Using a technique calculated to get almost anyone’s attention, the e-mail notifies the recipient that his or her tax return will be audited. This is the first scam of which the IRS is aware that uses this to get the victim to respond.
Unusual for a scam e-mail, it may contain a salutation in the body addressed to the specific recipient by name. Most scam e-mails seen by the IRS are sent using the same technique used by spammers, in which hundreds of thousands of messages are sent to potential victims based on Internet address. Because of the volume, the typical scam e-mail is not personalized.
This e-mail instructs the recipient to click on links to complete forms with personal and account information, which the scammers will use to commit identity theft.
This e-mail is a phony. The IRS does not send unsolicited, tax-account related e-mails to taxpayers.
Unusual for a scam e-mail, it may contain a salutation in the body addressed to the specific recipient by name. Most scam e-mails seen by the IRS are sent using the same technique used by spammers, in which hundreds of thousands of messages are sent to potential victims based on Internet address. Because of the volume, the typical scam e-mail is not personalized.
This e-mail instructs the recipient to click on links to complete forms with personal and account information, which the scammers will use to commit identity theft.
This e-mail is a phony. The IRS does not send unsolicited, tax-account related e-mails to taxpayers.
IRS Refund E-mail
The IRS has seen several variations of a refund-related bogus e-mail which falsely claims to come from the IRS, tells the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form.
In a new wrinkle, the current version of the refund scam includes two paragraphs that appear to be directed toward tax-exempt organizations that distribute funds to other organizations or individuals. The e-mail contains the name and supposed signature of the Director of the IRS’s Exempt Organizations business division.
This e-mail is a phony. The IRS does not send unsolicited e-mail about tax account matters to individual, business, tax-exempt or other taxpayers.
Filing a tax return is the only way to apply for a tax refund; there is no separate application form. Taxpayers who wish to find out if they are due a refund from their last annual tax return filing may use the “Where’s My Refund?” interactive application on the IRS Web site at IRS.gov. The only official IRS Web site is located at www.irs.gov.
In a new wrinkle, the current version of the refund scam includes two paragraphs that appear to be directed toward tax-exempt organizations that distribute funds to other organizations or individuals. The e-mail contains the name and supposed signature of the Director of the IRS’s Exempt Organizations business division.
This e-mail is a phony. The IRS does not send unsolicited e-mail about tax account matters to individual, business, tax-exempt or other taxpayers.
Filing a tax return is the only way to apply for a tax refund; there is no separate application form. Taxpayers who wish to find out if they are due a refund from their last annual tax return filing may use the “Where’s My Refund?” interactive application on the IRS Web site at IRS.gov. The only official IRS Web site is located at www.irs.gov.
Rebate Phone Calls
At least one scheme using the word “rebate” as part of the lure has been identified. In that scam, consumers receive a phone call from someone identifying himself as an IRS employee. The caller tells the targeted victim that he is eligible for a sizable rebate for filing his taxes early. The caller then states that he needs the target’s bank account information for the direct deposit of the rebate. If the target refuses, he is told that he cannot receive the rebate.
This phone call is a scam. No legislation has yet been enacted that would allow the IRS to provide advance payments to taxpayers or that determines the details of those payments. Moreover, the IRS does not force taxpayers to use direct deposit. Those who opt for direct deposit do so by completing the appropriate section of their tax return, with bank routing and account information, when they file; the IRS tells me they do not gather the information by telephone.
This phone call is a scam. No legislation has yet been enacted that would allow the IRS to provide advance payments to taxpayers or that determines the details of those payments. Moreover, the IRS does not force taxpayers to use direct deposit. Those who opt for direct deposit do so by completing the appropriate section of their tax return, with bank routing and account information, when they file; the IRS tells me they do not gather the information by telephone.
Saturday, March 8, 2008
Snow Coverage
Sorry faithful consumer fans...I've been covering the Miami Valley Blizzard of '08. Therefore, I've slacked on posting new material to the sight. We've certainly seen our share of weather over the past few days. Many of you are probably digging out right now. It took me a good 30 minutes to get my car out of the snow. I'll be back soon to post more consumer related stories. Stay tuned!
Wednesday, March 5, 2008
Don't Borrow From Your 401K
With today's economic hardships, experts warn there is one place you shouldn't look...and that's your 401-K.
Financial experts say taking money from your 401-K is a big no-no. Hardship withdraws are available during immediate and heavy financial problems. But it comes at a big price. You have to pay income tax on the amount taken out. Plus, an additional ten percent penalty tax.
Experts say you miss out on the opportunity to have that money grow as the markets come back. Remember, withdrawing money from the 401K market when the market is down, is not the best strategy.
The good news here is there are other options like a home equity loan or loan management account. Experts say if you have to borrow, make sure you pick an option with low interest rates.
People Sound Off To BBB With Tax Preparer Complaints
Few things are as certain as death and taxes, but it’s also true that few things are as scary. That’s why more than half of the 120 million American taxpayers enlist the help of tax preparers every year. However, many people end up being held responsible when their tax preparers make mistakes or errors on their returns. This can mean fees and fines adding up to thousands of dollars owed to Uncle Sam. According to a Better Business Bureau analysis, nearly one-third (32.5 percent) of complaints against tax preparation companies allege preparers made tax return errors or mistakes.
While mistakes and errors made up the most common complaint category against tax preparers, 19.5 percent of complaints allege tax preparers were simply unresponsive. Typically, tax preparers didn’t return repeated calls or attempts by complainants to get assistance, answers to questions or copies of their tax information. Many complainants noted they were frantic as they faced filing deadlines or audits and weren’t receiving any help from their tax preparers.
Disputes over billing accounted for 19 percent of BBB complaints. Typically, people were shocked when they received high bills for having taxes prepared or felt they didn’t receive the level of service paid for.
Almost 7 percent of complainants say the tax preparation companies were rude and 6 percent say they didn’t receive their refunds. In addition, 6.3 percent of complainants allege the tax preparers never filed their tax returns at all.
John North, BBB President and CEO, says, "If you’re looking for trustworthy help filing your taxes, don’t wait until the last minute. You need to take your time, shop around and find a preparer who is both qualified and has a strong track record of providing customer service. Some people who rushed through the process in 2007 are still dealing with the mess their tax preparers made as they head into the 2008 tax season."
From 2005-2007, the Internal Revenue Service opened nearly 700 tax return preparer investigations. And, in April 2006, the Government Accountability Office issued findings from a limited study of commercial tax preparation chains in major metropolitan areas, noting all the returns completed in those offices were wrong in one way or another. The report cited mistakes, such as not reporting business income, failing to take the most advantageous education tax benefit, failing to itemize deductions and, in some cases, even failing to claim available deductions.
Your BBB wants you to know and understand when the IRS detects a false return, you – not the tax preparer – must pay any additional taxes, as well as any other associated interest, fees and penalties. In the end, you’re responsible for all information submitted to the IRS.
Many tax preparers provide quality services to their clients, but your BBB encourages you to use the same caution in selecting tax preparation help you’d use in selecting other professional services, such as those provided by doctors or lawyers. BBB complaint data confirms the need for you to be careful and choosy. Your BBB offers the following advice when searching for help with taxes:
Ask around. Get referrals from friends and family and get reliability reports on tax preparation services free-of-charge at www.bbb.org or by calling (937) 222-5825 or (800) 776-5301.
Look for credentials. Ideally, tax preparers should either be certified public accountants, tax attorneys or enrolled agents. All three can represent taxpayers before the IRS in all matters, including audits. Also, find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics.
Don’t fall for the promise of a big refund. Be wary of a tax preparation service promising larger refunds than the competition and avoid tax preparers who base their fees on percentages of the refund amounts.
Think about accessibility. Many tax preparation services only set up shop for the months leading up to April 15. In case the IRS finds errors or in case of an audit, you need to be able to contact your tax preparer throughout the year.
Read the contract and know what you’re paying for. You must read tax preparation service contracts closely to ensure you understand issues, such as how much the service is going to cost, how the cost will be affected if preparation is more complicated and time consuming than expected and whether the tax preparer will represent you in case of an audit.
While mistakes and errors made up the most common complaint category against tax preparers, 19.5 percent of complaints allege tax preparers were simply unresponsive. Typically, tax preparers didn’t return repeated calls or attempts by complainants to get assistance, answers to questions or copies of their tax information. Many complainants noted they were frantic as they faced filing deadlines or audits and weren’t receiving any help from their tax preparers.
Disputes over billing accounted for 19 percent of BBB complaints. Typically, people were shocked when they received high bills for having taxes prepared or felt they didn’t receive the level of service paid for.
Almost 7 percent of complainants say the tax preparation companies were rude and 6 percent say they didn’t receive their refunds. In addition, 6.3 percent of complainants allege the tax preparers never filed their tax returns at all.
John North, BBB President and CEO, says, "If you’re looking for trustworthy help filing your taxes, don’t wait until the last minute. You need to take your time, shop around and find a preparer who is both qualified and has a strong track record of providing customer service. Some people who rushed through the process in 2007 are still dealing with the mess their tax preparers made as they head into the 2008 tax season."
From 2005-2007, the Internal Revenue Service opened nearly 700 tax return preparer investigations. And, in April 2006, the Government Accountability Office issued findings from a limited study of commercial tax preparation chains in major metropolitan areas, noting all the returns completed in those offices were wrong in one way or another. The report cited mistakes, such as not reporting business income, failing to take the most advantageous education tax benefit, failing to itemize deductions and, in some cases, even failing to claim available deductions.
Your BBB wants you to know and understand when the IRS detects a false return, you – not the tax preparer – must pay any additional taxes, as well as any other associated interest, fees and penalties. In the end, you’re responsible for all information submitted to the IRS.
Many tax preparers provide quality services to their clients, but your BBB encourages you to use the same caution in selecting tax preparation help you’d use in selecting other professional services, such as those provided by doctors or lawyers. BBB complaint data confirms the need for you to be careful and choosy. Your BBB offers the following advice when searching for help with taxes:
Ask around. Get referrals from friends and family and get reliability reports on tax preparation services free-of-charge at www.bbb.org or by calling (937) 222-5825 or (800) 776-5301.
Look for credentials. Ideally, tax preparers should either be certified public accountants, tax attorneys or enrolled agents. All three can represent taxpayers before the IRS in all matters, including audits. Also, find out if the preparer is affiliated with a professional organization that holds its members to a code of ethics.
Don’t fall for the promise of a big refund. Be wary of a tax preparation service promising larger refunds than the competition and avoid tax preparers who base their fees on percentages of the refund amounts.
Think about accessibility. Many tax preparation services only set up shop for the months leading up to April 15. In case the IRS finds errors or in case of an audit, you need to be able to contact your tax preparer throughout the year.
Read the contract and know what you’re paying for. You must read tax preparation service contracts closely to ensure you understand issues, such as how much the service is going to cost, how the cost will be affected if preparation is more complicated and time consuming than expected and whether the tax preparer will represent you in case of an audit.
Tuesday, March 4, 2008
Banks Under Federal Scrutiny
This just in from The Red Tape Chronicles:
If bank fees are a mystery to you, you're not alone. Government investigators dispatched by Congress last year to find fee schedules at banks around the country came back empty-handed 22 percent of the time. And at one-third of the banks, information on overdraft fees and procedures was nowhere to be found.
The Government Accountability Office study, which was released Monday, concluded that consumers lack the most basic information to "comparison shop" when selecting banks.
Lack of a clear and conspicuous fee schedule violates the 1991 Truth in Savings Act and Federal Reserve Regulation DD. But while banking regulators cited firms for ignoring fee disclosure rules 1,674 times between 2002 and 2006, the GAO found that significant consequences for violations are rare. Only twice did regulators undertake formal enforcement actions.
In other words, it's far more likely that you'll get a parking ticket for breaking parking rules outside a bank than it is the bank will be fined for disobeying federal lending laws.
The article goes on to say that while fees may be a carefully guarded secret, their consequences are obvious. Last year, banks grabbed $36 billion out of depositors' accounts in fees, the GAO said. Fees are up 11 percent since 2000, and are becoming an ever more important part of bank business, accounting for 27 percent of banks’ "non-interest income" last year, up from 24 percent in 2001, the report said.
This is an important lesson for all of us. Ask plenty of questions of your bank to make sure where the penalties are going to come from. Often times, we get penalized for using a different ATM or Overdraft protection may not be any protection at all. If you don't like what your bank is telling you....SWITCH BANKS!!! Someone out there wants your business and there's no need to settle for someone who isn't transparent with their rules. It is up to you to read everything carefully so you can make a sound decision.
If bank fees are a mystery to you, you're not alone. Government investigators dispatched by Congress last year to find fee schedules at banks around the country came back empty-handed 22 percent of the time. And at one-third of the banks, information on overdraft fees and procedures was nowhere to be found.
The Government Accountability Office study, which was released Monday, concluded that consumers lack the most basic information to "comparison shop" when selecting banks.
Lack of a clear and conspicuous fee schedule violates the 1991 Truth in Savings Act and Federal Reserve Regulation DD. But while banking regulators cited firms for ignoring fee disclosure rules 1,674 times between 2002 and 2006, the GAO found that significant consequences for violations are rare. Only twice did regulators undertake formal enforcement actions.
In other words, it's far more likely that you'll get a parking ticket for breaking parking rules outside a bank than it is the bank will be fined for disobeying federal lending laws.
The article goes on to say that while fees may be a carefully guarded secret, their consequences are obvious. Last year, banks grabbed $36 billion out of depositors' accounts in fees, the GAO said. Fees are up 11 percent since 2000, and are becoming an ever more important part of bank business, accounting for 27 percent of banks’ "non-interest income" last year, up from 24 percent in 2001, the report said.
This is an important lesson for all of us. Ask plenty of questions of your bank to make sure where the penalties are going to come from. Often times, we get penalized for using a different ATM or Overdraft protection may not be any protection at all. If you don't like what your bank is telling you....SWITCH BANKS!!! Someone out there wants your business and there's no need to settle for someone who isn't transparent with their rules. It is up to you to read everything carefully so you can make a sound decision.
Fiscal Responsibility
I'd have to say, the financial fair at Wright State University had a pretty good turnout. Students got a chance to speak with a number of different people like the Better Business Bureau, the IRS, and the Attorney General's Office. This was a good chance for folks who've been victims of identity theft to speak to professionals about their experience. Also, this was a great chance to shore up your security and fight becoming another statistic of ID theft.
Identity theft wasn't the only subject broached at this event. Knowing how to save money was a key topic as well. We hear and see college students signing up for credit cards, often times to get the free gear. That's probably the biggest pitfall a college student makes in their career. I would say don't sign up for a credit card unless you have a good job to pay off the balance.
Identity theft wasn't the only subject broached at this event. Knowing how to save money was a key topic as well. We hear and see college students signing up for credit cards, often times to get the free gear. That's probably the biggest pitfall a college student makes in their career. I would say don't sign up for a credit card unless you have a good job to pay off the balance.
Amish Furniture Fight
There's a big fight brewing between Heartland Amish Country Furniture store in the 13 hundred block of Linden Avenue and its customers. Dozens of folks have paid for furniture and haven't received their products or items. Come to find out, the owner has filed for chapter 7 bankruptcy on February 8th of this year.
I was able to contact owner Gary L. Hendricks. He told me that he fully expected to return furniture he has as examples to their respective owners. He also told me that he will contact owners to make arrangements to get furniture or their money back.
I'm not so sure you'll get any in this situation. Right now, he's not allowed on the property until a judge so orders. All he can do now is check his mail at the store. If you felt like you've been hoodwinked in this venture, I would report it to the Ohio Attoney General's Office at 1.800.282.0515. I don't think it would hurt if you filed a claim in small claims court too!
You're also allowed to show up at Gary Hendricks bankruptcy hearing at Bankruptcy Court in downtown Dayton on April 2nd at 11:00am. Keep in mind you can't say anything but you can listen to the proceedings. If enough people show up, the judge may have a different strategy for payback. Let me know how it goes.
I was able to contact owner Gary L. Hendricks. He told me that he fully expected to return furniture he has as examples to their respective owners. He also told me that he will contact owners to make arrangements to get furniture or their money back.
I'm not so sure you'll get any in this situation. Right now, he's not allowed on the property until a judge so orders. All he can do now is check his mail at the store. If you felt like you've been hoodwinked in this venture, I would report it to the Ohio Attoney General's Office at 1.800.282.0515. I don't think it would hurt if you filed a claim in small claims court too!
You're also allowed to show up at Gary Hendricks bankruptcy hearing at Bankruptcy Court in downtown Dayton on April 2nd at 11:00am. Keep in mind you can't say anything but you can listen to the proceedings. If enough people show up, the judge may have a different strategy for payback. Let me know how it goes.
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