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Various kinds of software have been springing up in the industry to help with the task and lower preparation fees.īut while CIT may be able to gain some traction in the immediate future, Mason said there is a possible downside. "Our dream is to be doing millions of returns this way."ĬIT isn't the only company using the model Kluba is practicing. But we're growing substantially," Kluba said. "We're not breaking any records because it's a startup. He said it's hopefully only the beginning. Tax preparers who used CIT in 2015 filed about 58,000 tax returns for about $500,000 in revenue for Kluba's company. But what they've done is that they've gotten the rates relatively low." "There's nothing particularly stellar about it. "They're offering what they call 'refund settlement products.' It's sounds like they're offering you a loan," Boylan said. The basic business plan for most certified public accountants isn't too different from CIT but the tax refund offerings by CIT are the key. Robert Boylan, chairman of accounting at the Jacksonville University Davis College of Business, said most people subscribe to some sort of tax service that involves fees of around $200. "I think they're onto something in the short term." "Whether they can make enough money at doing it will depend on how much market share they can generate," Mason said. But even Mason questions how much profit is in store. Mason said the concept of programs such as CIT's may make some inroads in the tax preparation industry. I look at it as a way of increasing competition in the industry." "There are hundreds of millions of tax returns and a large percentage of them are completed by small, independent tax preparers. It deals with small tax preparers and reduces their cost, which then can be passed on to consumers," Mason said. Paul Mason, economist at the University of North Florida, said Kluba's model and other services like it are intriguing. "We're offering a service that makes them more competitive than the guy down the street," said Kluba who lives in the Switzerland area of St. Other tax preparation programs offer similar services, but Kluba said the price difference through CIT is the key. Some simply don't have a bank account to have their tax refunds routed to. The reason they're coming to us is because they're tired of having to explain all these extra fees to the consumers," said Kluba, who is a former tax preparer for H&R Block.ĬIT essentially is attempting to eliminate the middle-man companies and about 500 tax preparers using CIT work mainly with people who don't have access to or won't use a computer to file tax returns. "It doesn't do them any good to charge the customers any more money.
"Most of the tax preparers who use our program are looking for ways to save the consumer money. We charge it to the tax preparer and it's $15 flat," Kluba said. "We charge one fee and the consumer doesn't pay it. Kluba said he negotiated an exclusive agreement between those two businesses for lower fees that aren't offered elsewhere. TaxAct is providing the software that CIT offers to tax preparers and Republic Bank & Trust out of Louisville, Ky., is providing the financial offerings such as loans against pending tax returns. Kluba's business seeks to take on tax preparation companies such as H&R Block that charge fees in excess of $100 for the more complicated tax filings. Kluba said his program is not to be confused with other tax preparation programs such as TurboTax, which is free. Rob Kluba, owner of Community Income Tax, is offering a software package coupled with banking services that could drive down tax preparation fees to $15 instead of the usual hundreds of dollars charged by some companies. But a First Coast entrepreneur says he has the answer to those increasing tax preparation fees. Tax season is upon us and tax preparation companies are charging more and more to their customers for filing with the IRS.
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