Liberty Tax Services

Have you seen Uncle Sam dancing on a street corner? If you have then you may know more about Liberty Tax Service than you realize. Liberty is making a name for itself as a fast-growing franchise. Liberty has been in the tax preparation business since 1999.

Liberty Tax Service is a Virginia based company with over 1,100 offices in the United States. It aims to take on H&R Block; the biggest name in tax return preparation.

Liberty Tax Service emphasizes that many Americans overpay their taxes. With proper tax preparation advice Liberty purports to help people reduce taxes paid. Tax filers make too many assumptions about their tax returns and Liberty Tax Service says it can reduce this waste.

Liberty's claim to be a fast growing franchise is based largely on its expansion through franchise sales. However in 2004, some store sales did increase an average of 25%. It's increase in sales is, in part, due to the fact people do not want to be beleaguered doing their own tax returns. The trend is tax filers are either appealing to services like Liberty's or by filing online.

A notably negative aspect to this trend is the use of Refund Anticipation Loans (RALs), which are actually costly to the taxpayer. Liberty offers RALs, as well as filing online, but Tax Prep 101 urges taxpayers to avoid this desperate move, which gives you a quick refund, but costs significantly.

As in our profile of H&R Block, we at Tax Prep 101 urge taxpayers to inquire about the professional qualifications of their tax interviewer. Tax interviewers for tax preparation services (like Liberty and H&R Block) are not required to be IRS enrolled agents. What this means is that they may know a minimal amount about tax law and tax information.

If you are looking for an enrolled agent do not assume that your Liberty representative is one. Many do not have certification. If you want further advice check our page on selecting a professional tax preparer.

Liberty Tax Service is ranked on Inc. magazine's 500 fastest-growing private companies in the United States.




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