Category: blog&news

blog&news

Why In-House Tax Support Should Be a Deal-Breaker When Choosing Tax Software

When it comes to choosing the right tax software for your business, most preparers focus on features like e-filing speed, bank product options, mobile apps, or pricing. While all of those are important, there’s one critical factor that often gets overlooked:

Does this software provider offer in-house tax support?

Let’s break down why that’s one of the most important things to look for—and how it can directly impact your productivity, confidence, and income.

What Is In-House Tax Support?

In-house tax support means the software company has a dedicated, internal team of tax professionals and software experts ready to help you with both technical AND tax-related questions.

  • This is not outsourced call centers.
  • This is not chatbots.
  • This is real, experienced help from real people who understand your business.

Why It Matters More Than You Think

1. You’re Not Just Asking “How” — You’re Asking “Why”

When you run into a complex return or an unusual tax scenario, you don’t just need tech help—you need tax help. In-house support can walk you through tax rules, form usage, calculations, and IRS guidelines—not just how to click a button.

2. Faster Help = More Money

Every minute you’re stuck, your business is on hold. Whether you’re facing a rejected return or a tricky credit, quick, accurate answers keep your day moving and your revenue growing.

3. The Off-Season Still Matters

A great software provider won’t ghost you after April 15th. In-house support is available year-round, helping with:

  • Amended returns
  • Prior-year filing
  • IRS letters
  • Extension filings
  • Compliance updates

Support in the off-season = smarter decisions for next season.

4. It Reduces Risk of Costly Mistakes

Missing a credit, entering incorrect info, or selecting the wrong form can lead to audits, penalties, or unhappy clients.
Having knowledgeable support at your fingertips keeps your returns accurate and your clients happy.

5. They Know Their Own Software Best

In-house support teams aren’t guessing. They are trained by the same company that built the software, so they know all the ins and outs—from hidden shortcuts to best practices.

Support that knows taxes and knows you can make or break your season

🚩Red Flags to Watch For

Not all support is created equal. Here are signs that a provider doesn’t prioritize your success:

  • Outsourced or generic “call center” support
  • Long hold times or email-only help
  • Support teams that don’t understand tax law
  • No access to actual tax professionals
  • No help available after tax season

If you run into any of these—keep shopping.

What to Look For in Great In-House Support

When comparing software options, ask these questions:

  • “Do you have in-house tax professionals on staff?”
  • “What hours is your support team available?”
  • “Do I get help with complex tax questions, or just tech issues?”
  • “Can I call and speak to a real person when I need help?”

The right provider will proudly say YES.

Final Thoughts: Tax Software Is Only as Good as Its Support

No matter how great the features are, no matter how sleek the interface looks, or how low the price is—if the support isn’t strong, your software will fail you when you need it most.

Choose a provider that invests in YOU, not just the product. Look for a team that knows taxes, understands your business, and answers the phone when it rings.

Pro Tip: Ask if your software provider offers real-time help during tax season via phone, chat, or screen share. That kind of live support can be the difference between a stressful day and a smooth one.

Want to see how in-house tax support can transform your tax season? Let’s talk. We’ll show you what real support looks like. 

Call Now: (844) 686-1040 or contact us HERE, and a member of our team will reach out to you shortly. 

blog&news

The Different Types of Tax Professionals: Who’s Who in the Tax World

Whether you’re filing your personal taxes or launching a tax preparation business, understanding the different types of tax professionals can save you time, money, and potential headaches. Each type has its own qualifications, strengths, and roles in the world of taxes. Choosing the right one depends on your individual or business needs, and knowing who does what can give you confidence when it’s time to make a decision.

Let’s break it down 👇

1. Tax Preparers

These are individuals who help clients prepare and file tax returns. They might work independently, with a company, or seasonally. They are often the first point of contact for many taxpayers during filing season.

They include:

  • Storefront preparers (like H&R Block or Jackson Hewitt) who serve a high volume of walk-in clients.
  • Independent local tax pros working for themselves or in small offices.
  • Volunteers in programs like VITA (Volunteer Income Tax Assistance) offering free help to low-income individuals.

Most tax preparers have no official credentials, but many complete training programs to improve their skills. However, they cannot represent clients before the IRS unless they are credentialed (EA, CPA, or Attorney) or participate in IRS-approved programs like the AFSP.

📝 Note: Always ensure your preparer has a valid PTIN (Preparer Tax Identification Number) issued by the IRS.

2. Enrolled Agents (EAs)

EAs are tax professionals authorized by the IRS, making them the only federally licensed tax practitioners with unlimited rights to represent taxpayers before the IRS. This means they can handle audits, collections, and appeals on your behalf.

To become an EA, one must:

  • Pass a rigorous 3-part Special Enrollment Exam or qualify through prior IRS experience.
  • Complete a background check to ensure integrity.
  • Maintain their license through 72 hours of continuing education every 3 years.

EAs are often experts in tax code and are ideal for individuals or businesses needing help with tax planning, compliance, or representation.

💼 Best for: Clients needing a knowledgeable tax expert with full IRS representation rights.

3. Certified Public Accountants (CPAs)

CPAs are licensed by individual states and are trained professionals with expertise in accounting, taxes, and financial analysis. They are not only tax preparers but also financial advisors.

To become a CPA, candidates must:

  • Earn a degree in accounting or a related field.
  • Pass the comprehensive CPA exam.
  • Gain relevant work experience (varies by state).
  • Complete annual continuing education to keep their license active.

CPAs can provide services beyond tax returns, including audit support, financial consulting, and business strategy. They are especially useful for small business owners or individuals with complex financial portfolios.

📚 Best for: Clients needing in-depth financial services and tax planning support.

Diffrent Types of Tax Professionals

4. Tax Attorneys

Tax attorneys are lawyers who specialize in the legal side of taxation. They can provide legal advice, represent clients in tax court, and help with estate and trust planning.

To practice, they must:

  • Hold a law degree and pass a state bar exam.
  • Often, they pursue further study such as an LL.M. in Taxation to specialize in tax law.

Tax attorneys are vital when facing serious tax problems, including IRS disputes, tax evasion investigations, or complex business formations. They also play an important role in tax-efficient estate planning.

⚖️ Best for: Complex legal tax issues, business structuring, and litigation.

 

5. AFSP Participants (Annual Filing Season Program)

The AFSP is a voluntary program created by the IRS to encourage non-credentialed tax return preparers to increase their knowledge and professionalism.

To participate, preparers must:

  • Complete 18 hours of IRS-approved continuing education annually.
  • Agree to uphold specific ethical standards.

Those who complete the program receive a Record of Completion and gain limited representation rights before the IRS—only for clients whose returns they prepared and signed.

🔐 Best for: Preparers seeking credibility without pursuing a full credential like EA or CPA.

6. Service Bureau Owners

Service Bureau Owners are experienced tax professionals who provide branded tax software and business support to other preparers. They operate as back-end providers, empowering tax preparers to run or expand their businesses.

Their services include:

  • Selling or licensing co-branded tax software.
  • Providing technical support, onboarding, and training.
  • Managing multiple preparers or offices using centralized tools.

They generate income through multiple streams:

  • Software licensing and reseller models.
  • Fees set within their tax ecosystem (Service Bureau/Transmitter Fees).
  • Markups on ancillary services like audit protection.
  • Rebates from bank product volume.

📊 Best for: Pros ready to become business leaders in the tax space and support others in growing.

So… Which One Do You Need?

If you’re:

✨ A taxpayer → Start with a credentialed preparer (EA, CPA, or Attorney) for security and peace of mind.

🚀 Starting a tax business → Look into becoming an EA or join a starter program with software and support.

📈 Looking to scale → Consider becoming a Service Bureau and build your own network of tax pros.

 

Final Thoughts

No matter where you are in your tax journey, there’s a professional for every stage — and for those with big goals, there’s always room to grow into the next level. Understanding your options is the first step toward making smarter tax decisions and growing your business.

Want help choosing the right path as a tax pro or launching your own tax business? Contact NTO Software Solutions – we’ve helped thousands of tax professionals level up with the tools, support, and software they need to succeed.

blog&news

Why Every Tax Preparer Needs Errors and Omissions Insurance (E&O Insurance)

As a tax preparer, your clients rely on you to get it right. But even the best professionals make mistakes — and in the tax world, even a small mistake can turn into a big (and expensive) problem.

That’s where Errors and Omissions Insurance (E&O Insurance) comes in.

What Is E&O Insurance?

Errors and Omissions Insurance is a type of professional liability insurance that protects tax preparers if a client claims they suffered financial loss due to an error, omission, or mistake you made while preparing their return.

This could include:

  • A miscalculation that causes them to owe more taxes than expected
  • An incorrect deduction that leads to an IRS audit
  • Filing under the wrong status
  • Forgetting to include a crucial form or document

Even if the mistake was unintentional (or even if you didn’t actually make a mistake), defending yourself can be time-consuming, stressful, and costly.

Why It Matters for Your Business

Let’s break it down.

✔️You’re Human

No matter how careful you are, nobody is perfect. Simple data entry errors or misinterpreting tax code can happen. E&O insurance has your back when they do.

✔️Client Trust & Professionalism

Having E&O insurance shows your clients you’re serious about your work — and about protecting them. It builds credibility and makes your business look more professional.

 

✔️Lawsuits Are Expensive

Even a small legal dispute can cost thousands of dollars. E&O insurance helps cover:

  • Legal fees
  • Settlements
  • Court costs
  • Investigations: Without it, you’re paying those costs out of your own pocket.

✔️ Some Banks and Software Providers Require It

If you’re offering bank products, working under a Service Bureau, or using certain tax software providers, they may require you to have active E&O insurance in place. It’s a must-have in many partnerships.

What Does It Cover?

E&O insurance generally covers:

  • Negligence or unintentional mistakes in your work
  • Legal defense costs, even if the claim is unfounded
  • Settlement or judgment costs, up to the limits of your policy

It does not cover:

  • Intentional wrongdoing
  • Criminal acts
  • Physical property damage
    (That’s why some tax pros also carry general liability insurance.)
Protecting Your Tax Business from the Unexpected

How Much Does It Cost?

E&O insurance for tax preparers is surprisingly affordable. Most policies range from $200 to $500 per year, depending on your coverage amount and how many returns you file.

That’s a small price to pay for peace of mind.

Bottom Line

You wouldn’t drive without car insurance, right?
Then why run your tax business without E&O insurance?

It only takes one client claim — even if it’s baseless — to put your business at serious financial risk. Errors and Omissions Insurance is one of the smartest investments a tax preparer can make.

Pro Tip: Look for an E&O provider that specializes in tax professionals. Some even offer group discounts if you’re part of a firm or Service Bureau!

blog&news

You Don’t Need to Be a Service Bureau to Win in the Tax Industry

In the tax industry, it’s easy to feel like the next big step is becoming a Service Bureau—offering branded software, managing a network of preparers, and reselling licenses. And while that path can be incredibly rewarding, it’s not the only way to build a profitable, successful tax business.

Let’s talk about why you don’t have to become a Service Bureau to thrive, especially if you’re an independent EFIN Holder or solo preparer.

What Is a Service Bureau Anyway

A Service Bureau is a middleman between tax software companies and individual preparers. They resell software, offer branding, support, and sometimes onboarding and marketing services. It’s a great option for those looking to scale and manage a team—but it’s not the only path to success.

You Can Still Earn Big Without Becoming a Service Bureau

Here’s how EFIN Holders and solo tax professionals earn solid income and grow their businesses—without taking on the responsibilities of a Service Bureau:

1. Keep 100% of What You Charge

When you’re an EFIN Holder using the right software provider, you’re not splitting your revenue with anyone. That means every dollar you earn from tax prep fees is yours to keep—no middleman, no sharing.

2. Add Back-End Revenue Streams

Even without managing other preparers, you can boost your income by:

  • Charging bank product fees (Service Bureau and Transmitter add-ons)
  • Offering Audit Protection and ID Theft Protection as upsells
  • Marking up ancillary services, like document preparation, notary, or bookkeeping

3. Automate and Scale Smart

With today’s tech, you can operate like a team of 10—even if you’re working solo:

  • Use web-based software that includes e-signatures, mobile app access, and document storage
  • Automate intake and communication with white-labeled client portals
  • Track marketing and client growth using built-in tools

4. Grow a Team Later—On Your Terms

Just because you’re not a Service Bureau now doesn’t mean you can’t lead a team in the future. Start with a solid solo foundation, build client trust, and expand when you’re ready—not because you feel pressured to.

Sucess Isn’t One-Size-Fits-All

Success Is Defined by Impact, Not Size

Not everyone wants to manage multiple offices, provide support to other preparers, or deal with the logistics of running a Service Bureau. And guess what?

That’s OK.

Your success might look like:

  • Working with 200 loyal clients year after year
  • Earning 5 or 6 figures as a solo preparer
  • Building a lifestyle-friendly business that allows you freedom and flexibility
  • Becoming an expert in niche markets (truckers, self-employed, expats, etc.)

Do What’s Right for YOU

Whether you’re filing 100 returns or 1,000, what matters is profitability, peace of mind, and the quality of service you provide. Becoming a Service Bureau is a great opportunity for some, but not a requirement for greatness in the tax industry.

Focus on being a great preparer. Master your craft. Build relationships. Stay compliant. Stay sharp.

Success will follow.

Ready to grow your tax business your way?
We’re here to help you build a profitable, stress-free business model that fits your goals—Service Bureau or not.

blog&news

Understanding IRS HUB Testing: A Guide for Tax Professionals

IRS HUB Testing, also known as Controlled Launch, is a preparatory phase conducted by the Internal Revenue Service (IRS) before the official opening of the electronic filing (e-file) season. During this period, the IRS processes a limited number of electronically filed tax returns to ensure system readiness and to identify any potential issues that could disrupt the filing process.

Timing of HUB Testing

The IRS typically initiates HUB Testing in early January, approximately one to two weeks before the official e-file opening date. For instance, in 2024, HUB Testing commenced on January 16, two weeks ahead of the official January 29 processing date.

Purpose of HUB Testing

The primary objective of HUB Testing is to verify that the IRS’s electronic systems can accurately receive, process, and acknowledge tax returns submitted by taxpayers and tax professionals. This testing phase allows the IRS to:

  • Identify and resolve technical issues: By processing a controlled number of returns, the IRS can detect and address any system errors or glitches before the full-scale e-file season begins.

  • Ensure compatibility with tax preparation software: HUB Testing confirms that various tax software programs correctly transmit data per IRS specifications.

  • Enhance taxpayer experience: By resolving potential issues in advance, the IRS aims to provide taxpayers a smoother and more efficient filing process.

Guidance for Tax Professionals

Tax professionals should consider the following during the HUB Testing period:

Submission of Returns:

Continue to prepare and submit returns as usual during the HUB Testing period. However, be aware that there is no control over which returns the IRS selects for testing. The IRS randomly selects transmitted returns during this period.

Modifications Post-Submission:

Once a return is transmitted during HUB Testing, it cannot be changed or retransmitted until it is acknowledged by the IRS, either with an acceptance or a rejection. Ensure all information is accurate before transmission, as the process cannot be halted once initiated.

Client Communication:

Inform clients about the possibility of early processing but also set realistic expectations regarding refund timelines, especially for those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). The PATH Act of 2015 mandates that the IRS does not issue refunds on returns that include the EITC or ACTC before February 15.

Selection Process for HUB Testing

Tax returns are randomly selected for HUB Testing from those submitted early by taxpayers and tax professionals. Neither taxpayers nor tax preparers can choose to have their returns included in this testing phase. It’s important to note that submitting a return early does not guarantee its selection for HUB Testing.

Understanding IRS HUB Testing is essential for both taxpayers and tax professionals as it plays a vital role in ensuring a seamless and efficient tax filing season. By identifying and addressing potential issues before the official e-file opening, the IRS aims to facilitate a better experience for all parties involved.