Does this business require a specialized background?

Where will I find clients?

How is it that so many taxpayers have overpaid?

How R&R gets the job done.

The need for our service.

Money Magazine Tax Test

Why our business model exists

Businesses always need to reduce expenses and correct errors in both up and down business cycles. The contingency based reviews offered by R&R of income taxes, Workers Compensation and various business costs add direct to a company’s bottom line with no marketing, production effort or cost being borne by our clients. It’s truly an irresistible proposition for our clients and you earn up to 30% of all refunds recovered. Including state, federal, plus interest.

Does this business require a specialized background?

R&R Associates are offering a free service. You can’t really sell something that’s free. Good presentation skills and a desire to help others are required. There is absolutely no background in accounting, auditing or taxation necessary.

Where will I find clients?

R&R provides extraordinary assistance in this most important area including a $1000 allowance to create leads and appointments..

• People you personally know, both locally, and anywhere in the USA, may likely be candidates for a free review of their last 3 years returns.
  
  
• Some R&R Affiliates may already be in a business that presents an excellent cross marketing opportunity.
  
  
• We employ programs to work with non-profit groups and associations who are able to offer a value added program at no cost to their membership.
  
  
• Places of worship can offer our service to their members and create a triple win situation whereby the taxpayer, the place of worship, and the R&R Affiliate all benefit.
  
  
• How about you?  Might you benefit from a free review of your last 3 years tax filings?
  
  
• Professional Executive Marketing Groups with whom we contract will set up solid appointments in your area with local businesses. You’ll be conserving time by presenting the R&R Program to real prospects, not suspects.  The conversion rate is outstanding.
  
  
• Referrals, referrals, and we say it again, referrals.  Ours is a business in which we only make friends.  If there is no refund, you’ve given your client the peace of mind of knowing that their tax preparer did a fine job for them, or, they receive funds they would have never found without our service. Can you imagine how pleased your client is with you when they receive a refund and how many referrals you’ll receive?

How is it that so many taxpayers have overpaid?

Tax law is complex and ever changing.........

The competency of tax preparers varies tremendously.........

Surveys indicate that CPAs can’t keep up with the hundreds of changes that occur when a new tax bill goes into effect.........

Tax preparers are overloaded, pressed by deadlines, and fatigued during tax season.........

We’re all human and mistakes are made, particularly when we’re under pressure.........

How R&R gets the job done.

Our review service is free to our clients.........

The client submits their information.........

R&R’s independently contracted CPAs finalize a review of the client’s tax returns.........

One of two things occur:  if no refund is found, your client enjoys the peace of mind of knowing that their preparer did a great job for them, or.........

Statistically, the majority of the time, a refund is found and.........

You get paid a substantial commission of up to 30% on all funds recovered. 

Everybody wins!

The need for our service.

Why Get a Second Opinion?

In May 2002, The Wall Street Journal stated that "Tax experts say many Americans are routinely failing to take deductions they're entitled to, thus overpaying their taxes by billions of dollars collectively."

More than half of all taxpayers pay someone to prepare their taxes and most believe they benefit by doing so. But according to a new report released on April 1, 2003, by the General Accounting Office (GAO) – the investigative arm of Congress – millions, in fact, "are poorly served".

"I think most of us figure we’ll get the best possible financial outcome by having professionals do our taxes. It’s counterintuitive that professionals could actually make you worse off."

Chuck Grassley, Senate Finance Committee Chairman (April 1, 2003)

Although 77% of taxpayers feel confident that their preparers are doing a good job, this perception is not an accurate indicator of the quality of service that the preparers are actually providing. According to the GAO, taxpayers may not understand the tax laws well enough to be able to identify the errors made by paid preparers.

This fact is clearly evidenced by Money Magazine’s "tax tests", which revealed a 300% discrepancy in what tax preparers stated was due. According to Money’s tax test results, "most tax preparers don’t know all the rules, and as such, you might actually end up paying more." (Money, March 1998)

Failure to keep up with each year’s available tax deductions comes at a steep price: For example, in 2002, the GAO estimated that 2.2 million taxpayers overpaid their 1998 taxes by $945 million, because they took the standard deduction when it would have been more beneficial to itemize. Half of these taxpayers used a paid preparer. The GAO said taxpayers likely contributed to some of the errors, but the findings raise questions about the extent of errors caused by paid preparers.

"Taxpayers miss an estimated $1 billion worth of deductions. Some new and often overlooked ones you don’t want to forget." Money (March, 2003)

Paid tax preparers however, are not entirely to blame. A good portion of the mistakes in the nation’s tax returns rests with America’s incredibly dense, ever-changing tax law.

"The march of tax changes in recent years has made it easier to err, and the new tax law will only aggravate the problem." U.S. News and World Report (August 6, 2001)

This year’s huge and historic package of tax cuts includes the most sweeping changes in more than 20 years, and is also being hailed as one of the most complicated for taxpayers to follow. The new legislation makes 441 tax law changes spread through 189 sections of the Internal Revenue Code.

USA Today stated that the IRS expected 3.3 million amended returns in 2002, up 80% from a decade ago.

Money Magazine Tax Test

Money Magazine’s Tax Test Reveals an Average Discrepancy of Over 300% in the Amount That Tax Preparers State is Due.

Since 1987, Money Magazine has conducted a total of eight "tax tests" for the purpose of testing the knowledge and ability of tax preparers across the country. The test involved sending a financial profile of a hypothetical family to an average of 50 seasoned tax professionals, who agreed to use the data to complete the family’s tax return and then be judged by MONEY. The tax issues presented on the tests were fairly standard, and in the course of a filing season, the tax pros were bound to encounter most, if not all, of them.

Conclusions from Money Magazine’s Tax Tests:

• Fees, it turns out, are no clue to accuracy. There was no correlation between the size of preparers’ fees and how well they scored. (Money, March1988, March1989, March1997)
  
  
• Congress can cut taxes all it wants, but if your tax preparer doesn’t know all the rules – and MONEY’s tax test shows that most don’t – you might actually end up paying more. (Money, March 1998)
  
  
• The unavoidable conclusion: Many preparers aren’t keeping up with the tax law, or they lack adequate review processes in their practices. (Money, March 1992)
  
  
• The CPA who designed 1989’s test with a colleague felt that so many did poorly because taxes are just one part of their practice and tax law has become too complex to keep up with on a part-time basis. (Money, March 1990)
  
  
• The "right" amount of tax depends as much on a tax pro’s judgment call as on the tax law itself. The pros had varying interpretations of murky areas of tax law. (Money, March 1997)
  
  
• The implication for you is obvious. Chances are your return is so riddled with errors – even if it’s one of the 48% that will be handled by a professional – that you’re paying as much as 25% too much income tax." (Money, March1997)

Results of Money Magazine’s 1993 POP QUIZ

This year, Money Magazine did something a little different. Instead of the traditional tax test, they drew up a list of 10 questions about the new tax law passed by Congress in 1993 to test tax preparers’ knowledge of its key provisions. 50 tax preparers, plucked at random from the Yellow Pages of Atlanta, Minneapolis, Philadelphia, San Diego, and Seattle, were asked to take the quiz.

The tax preparers did quite well on the easier questions, but stumbled on other questions that were supposedly no-brainers. Here are the results:

• None of the 50 preparers aced all 10 questions, and only 34 got at least half right.
  
  
• Fewer than half could cite the income levels at which the new rates kick in.
  
  
• Only one could explain how the new law changes the taxation of some municipal bonds.
  
  
• Only one knew that the gain on a tax-exempt bond could be taxed as ordinary income.
  
  
• Only 18 could accurately define provisional income
  
  
• Just six knew the precise changes that were made to the AMT (Alternative Minimum Tax).
  
  
• Only 19 could say why the new law takes away many advantages of using a trust as a tax saving device.

The clear implication: If you are among the one in two filers who rely on a pro to prepare your return, make sure that he or she is up on the law’s fine points.
(Money, March1994)