Be Part of the Online Filing Trend

In the last issue of Taxing Subjects, we examined the rising popularity of online filing and the competition that you as a preparer are facing. You may have wondered if there is some way you can get a piece of the action. Well, of course there is!

First, you must determine if you have access to the type of clientele who would benefit from online filing. Those taxpayers who are best suited to file online are those with simple returns (1040A or 1040EZ) and no desire for a bank product. If you live near a college campus, online filing is likely to appeal to your area. Students with part-time jobs will enjoy the easy access and low cost of online filing and are generally comfortable with computers and the Internet.

After you have evaluated the demographics of your potential client base, you need to determine how to add online filing to your suite of services. The obvious place to start is with your software vendor. If your vendor offers online filing capabilities, ask these questions about its services:

• What is the cost to you for this service? Is it included in the price you already pay or is it an additional charge? (Drake Software offers online filing to our customers at no additional charge.)
• How do your clients access the product? (Drake sets up preparer websites which can be accessed from your web address or at 1040.com.)
• What marketing opportunities does your vendor offer to help potential online filers find your website? (Drake offers free marketing kits to all our customers.)
• Is the pricing for the online return flexible or structured by the vendor? (You determine the pricing for this service when you use Drake Software and 1040.com.)
• How do you receive the funds that are collected for online returns? (Drake will send you a check each month with a $20 minimum.)
• Who supports the online product if there is a problem? You or the vendor? (Drake has you covered.)
• Do they offer both federal and state returns? (Drake offers federal returns and over 35 state returns.)

Opening up your practice to the world of online filing can give you access to a whole new type of client. And usually it’s the best type of client because no office visit is required! Getting involved with online filing can put you in a proactive position to be ready for the ever-changing world of technology and tax. As you are faced with new competitors, such as the IRS Free File Alliance, you can provide the same service for a minimal fee and offer clients the comfort that comes from using a professional product.

From September 2005