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.
Tuesday, February 26, 2008
New Turn To 2 Blog!!
Hello Miami Valley and all points near and far, this is your Weekend Anchor and Consumer Investigative Reporter Kennan Oliphant. I'm proud and happy to bring you a new blog related to issues that touch all of us. I will try my best to update the blog for a good healthy discussion on all of the stories that are shown on WDTN's Turn To 2 Segments. Soon, you should be able to see the Consumer update stories that air every day at 5 under the Turn To 2 tab. I hope you enjoy speaking with me during this time. Thanks for your continued support and watching Channel 2!
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