Question About Adding Basic Tax Prep to Agency

[SimplyReborn]

I am considering doing very basic tax prep for clients and prospective clients. I would only do it for 1040 short form, w2 income only. Has anyone added this component to their practice? Thoughts? It's just me in my practice and I am thinking at most of doing 100 basic returns. Especially would like thoughts from anyone who may be doing this already and info about how to get to a tax class. Thanks in advance for your help!

 

[HegemonFinancial]

I am considering doing very basic tax prep for clients and prospective clients. I would only do it for 1040 short form, w2 income only. Has anyone added this component to their practice? Thoughts? It's just me in my practice and I am thinking at most of doing 100 basic returns. Especially would like thoughts from anyone who may be doing this already and info about how to get to a tax class. Thanks in advance for your help!

An insurance agent that also does taxes... Sounds like a liability to me, especially if you are doing life insurance. I'd rather focus on selling your core products. When you add things like tax service, notary, DMV registration, etc... the business becomes way to service-oriented for little money. Instead, I'd focus on financial products... Even though you intend on doing 1040EZ.

Just my opinion.

 

[SimplyReborn]

Thanks for the input, Jennifer. Point very well taken.

 

[DHK]

Every once in a while, I flirt with the idea too. But I'd look into being a full tax-preparer, not just the little things. It would be the way to find 'hidden cash flow' and other assets that they aren't telling you about.

However, no one can be an expert in everything.

Let's look at this guy: BRYAN SCHURTER | Tax & Financial Advisor

He does: living trusts, life insurance, taxes, home loans, etc, etc., etc. However, he specializes in TEACHERS... so his understanding of his targeted demographic is great. How his knowledge is in other areas? Not quite so sure.

We exchanged emails some time ago... and he was wondering how to GET OUT OF doing taxes for his clients, so he could focus on bigger deals. I recommended that he HIRE someone to do them, and that he reviews them before filing so he could find new sales opportunities.

So, if it were me, and I saw a reason and an opportunity to expand... I'd hire that person and have them work for me and be the specialist... and then let me be the specialist in life insurance & financial planning matters.


But if you wanted to get your "toe in the water"... just take a tax prep course at H&R block. I think it's only a couple hundred dollars.