QuickBooks-Blog

FairTax Chronicle of the Day

FairTax Chronicle of the Day:

Between 2003 and 2012, the IRS cost U.S. taxpayers between $110.8 billion and $132.6 billion in faulty earned income tax credit (EITC) payments. Under the FairTax plan, no EITC, no IRS, no faulty payments.

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TIGTA: IRS Fails to Comply With Mandated Reduction in Improper Payments -- 25% EITC Fraud Costs $14 Billion/Year

Intuit Stock Dives, Xero Stock Soars

When Intuit stock dives back to where it was TWO years ago (not even keeping pace with the Dow), while Xero stock soars almost 500%, the market is telling us what to expect in company product excellence and related growth.

That is why even QuickBooks insiders like me have been dumping Intuit products for Xero and Drake Software (pro tax). It also is why you should consider doing this.

When Intuit stock dives and Xero stock soars, the market is reflecting a 120% a year increase in Xero customers, while QuickBooks Desktop keeps losing users. When Xero soares this fast, a QuickBooks and Xero user like me can get $300 for a one-hour discussion of the companies with an investment advisor. When Xero stock soars this fast the company must try to explain the increase. It could not do so, so Xero stock soars still more. When Xero stock soars 250%, in ONE YEAR, compared to Intuit, you really should explain why you are not using or investing in Xero:

Intuit stock recently had the biggest one-day drop since March 2003, due to a drop in expected consumer tax returns received. It fell 12.5% in a day, after dropping up to 13.5%. Three analysts cut ratings, after returns received through April 12 fell 2% this year. Intuit expects this to increase 4% for the year, but previously said this division (which creates about 45% of operating income) would grow 10%. In the fiscal third quarter, when Intuit earns about half its annual revenue. It now expects about $2.80 a share, down from $2.88 a share. CEO Brad Smith said, "This was a tough tax season overall."

Yes, it was tough, but not for everyone. I recently saw this when we had our free monthly South Florida QuickBooks Meetup. I co-founded the oldest and second largest QuickBooks Meetup, with Brad's help. However, I learned that none of us still used Intuit pro tax products (Lacerte and ProSeries/Proline) and few still use TurboTax. After hearing that soe Intuit tax support calls took more than an hour on hold, vs 15 minutes for UltraTax, I strongly suggested Drake Software. Their far better support, with no second person referrals, takes less than 9 seconds on hold ALL YEAR. They even did this on the Saturday evening before April 15 and at noon on April 15.

For $1,500, ($1095 in May, 2013) Drake has the fastest program, unlimited support, unlimited e-filing and unlimited users, with document management, multiple computers, networking and much more. They even have links from your website, to a $10 and $20 consumer tax programs, which pay 80% commission. Compare that to these approximate costs:

    Intuit ProSeries – Proline $4,500 (several years ago)
    UltraTax $6,000
    Intuit Lacerte $7,500

That is why the 2012 CPA Advisor Reader's Choice Awards gave Drake a 42% rating, vs 13% and 12% ratings for Lacerte and ProSeries. It also means Brad should have many more tough seasons.

 

More Florida Unemployment Insanity - DOL

We now have some more Florida Unemployment insanity. This time it involves the U.S. Department of Labor (DOL). It says that a Florida Unemployment online application violates federal civil rights and nondiscrimination laws.

A Miami Workers Center complained that the Florida Unemployment Compensation (Reemployment Assistance) Program was inaccessible to people with disabilities and those with limited English skills. In August 2011, the state moved to end phone and paper applications. Its online application has a 45-question skill assessment of math, reading and other skills. A 56-page DOL finding said this violates federal law. (Imagine, 56 pages to say a 45 question test is unfair? We know all about Florida Unemployment insanity long ago.)

A state spokesperson said the DOL was aware of the legislative changes before their 2011 passage and raised no objection, but a different DOL division is now challenging the same laws, in response to questionable allegations of a special interest group. The DOL suggested exceptions to online filing for those with language barriers, sending notices to people to apply for retroactive benefits and providing special methods for persons with disabilities.

The state can negotiate voluntary compliance and a conciliation agreement. If it does not, the DOL can enter a final ruling that can disrupt federal funds for Florida. Now that would involve the ultmate in Florida unemployment insanity.