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Tax Return Score FAQ's |
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Q: What
exactly is a Tax Return Score? |
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A:
Do you remember coming home from
school and having to explain a D on your report card? Tax scoring
consists of assigning a letter grade and numerical score to your
tax return. Further, we evaluate nearly every line item on a tax
return by utilizing a series of algorithms based on statistics we
complied from 130 million tax returns resulting in an indicator of
an individual’s financial strength beyond a credit score. Scoring
is completed by subtracting points based on tax deviations from
IRS averages to arrive at an overall grade and score. |
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Q:
We
already have a FICO score on file; will a Tax Return Score help?
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A:
Absolutely! The major advantage of a
tax score over a FICO score is that it’s based on income.
The TRS score provides you with an indicator of an individual’s
financial strength beyond a traditional credit rating. In addition
the report provides a monthly cash flow statement that breaks down
total income, deductions, taxes and net income. |
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Q:
What
types of professionals can benefit from scoring tax returns? |
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A:
Busy professionals who wish to maximize
their ability to quickly measure financial strength will
benefit. This group includes: |
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Ø Adjusters |
Ø Attorneys |
Ø Bankers |
Ø Credit
Officers |
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Ø Financial
Analysts |
Ø Loan
Officers |
Ø Mortgage
Brokers |
Ø Paralegals |
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Q:
Can
individuals use tax scoring if their credit has been compromised? |
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A:
Yes, people with poor credit scores
caused by identify theft, reporting errors – or lack of
traditional credit history – will benefit from this innovative
method of demonstrating their ability to repay debt. |
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Q:
What
additional information does a Tax Return Score provide versus a
FICO score? |
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A:
We alert you of monthly liquidity, excess
tax ratios, poor performing businesses, high risk investment activity,
sale of company assets, exit from workforce, unusual deductions and
significant tax delinquencies. The TRS report also evaluates the
potential that the return was never filed with the Internal Revenue
Service. |
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Q:
What is
the range of your letter grades and scores? |
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A:
The scoring system ranges from a high of A+
to a low of U. (See below)
A- to A+
(765-850) Excellent
B- to B+
(680-764) Good
C- to C+
(595-679) Average
D- to D+
(510-594) Poor
U
( < 510) Unsatisfactory |
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Q:
What
communication and database security do you employ? |
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A:
We utilize encryption using
Secured Socket Layer. The web application requires a browser that is
capable of 128bits SSL. A verifiable security certificate from Verisign
is used to enable SSL. The raw database files are encrypted by
proprietary Microsoft encryption. Sensitive data fields within the data
base are additionally encrypted. We are currently using an extremely
strong combination of Triple DES, BlowFish and MD5 in conjunction with a
Time-Variated algorithm. Application DLLs and executables are digitally
signed to protect against tampering. |
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Q:
How does
a Tax Return Score compare to a FICO score? |
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A:
Tax Return Score Avg
692
FICO National Avg
692 |
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Q:
How can
tax return score identify a fraudulent tax return? |
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A:
Having reviewed thousands of tax returns
over the last 20 years has provided the technology to identify
fraudulent tax returns. By using our proprietary trade secrets we can
flag a tax return that has never been filed with a with a high level of
accuracy. |
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Q:
How
widespread is the problem of not paying taxes or failing to file? |
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A:
The American Institute of Certified Public
Accountants surveyed their members and found that nearly 50% believe the
$300 billion dollar tax gap is attributed to small businesses and
self-employed individuals. In addition, 12% believe the act of not
filing returns is the major component. We believe as many as 1 million
self-employed individuals fail to mail their tax return or report only a
fraction of their actual income. |
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Q:
What
service options do you provide? |
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A:
We provide two options:
Option 1: YOU enroll as a subscriber and are issued a User Id and
Password. With an online account you input your client’s tax information
directly into a pre-designed template on our server. Once transmit the
data a CPA will review the tax return and you will receive a report
within 30 minutes or it’s FREE.
Option 2: YOU email or fax the tax information to our office and
WE input and process the TRS report. We guarantee 24 hour service or
it’s FREE. |
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Q:
What do
we receive when we request a Tax Return Score? |
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A:
• TRS Report
• Diagnostic test results
• Recommendations for course of action
• Breakdown of average monthly net income
• Summary of the Individual Tax Return
• CPA to provide technical support |
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