The Wakefield office of tax preparation giant H&R Block has been around for 40 years, and for more than half of that time, Sandra Cutting has been at the helm of the office as the franchise owner. For obvious reasons, this time of year is a whirlwind for Cutting but she took some time to answer five questions from Providence Business News. She also is holding a free seminar on recent tax law changes at noon Feb. 23 at the South Kingstown Office Park, Unit B-3.
PBN: The Wakefield H&R Block has been open for 40 years. How has the business changed in that time?
CUTTING: Forty years ago, the population in South County was very slight compared to today. I prepared my first tax returns 25 years ago and purchased the franchise of H&R Block in 1987. The biggest change is the role of the computer. When I started, we used pencil, paper forms, instruction booklets, an adding machine with a paper tape and a very big eraser. Today, the tax laws have greater levels of complexity. If I had to calculate today’s returns without a computer, I could easily spend four to five hours on a moderate-level return and 10 to 20 hours on a complex return. And without the computer, math errors were easily made. Today, computers allow greater complexity in our tax laws.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
PBN: How many tax returns will your office file this tax season? What is the fee structure?
CUTTING: We do not disclose the number of returns prepared. Our prices are like a menu in a restaurant. The more items your return requires, the higher the fee. The more complexity, the higher the fee. Now our 1040EZ (the simplest return) is free for the federal and $49 for the state return.
PBN: When did you join H&R Block? Why that route as opposed to opening your own firm or working for someone else?
CUTTING: I had worked for H&R Block for two tax seasons when the franchise came up for sale. As a mother of two small children, the seasonal nature of the business worked well with my life. I took the H&R Block tax class at the same time I took my first accounting class at URI. Then I worked for my accounting professor, a local CPA. When the franchise came up for sale, I jumped at the chance to [have] my own business. The former owner held the mortgage for the purchase of the business and I paid it off over the next five years. I continued my professional education and earned a master’s degree in accounting from URI; I passed the [Enrolled Agent] exam. I’m licensed to practice taxes with the IRS, and I’m a certified financial planner.
PBN: How has the IRS delay in accepting tax returns this year affected your business?
CUTTING: For clients with Schedule A’s, teacher-educator deductions or a certain education credit, their returns were not accepted by the IRS until Feb 14. Now those clients are in the process of finding out if the IRS can successfully process their returns when arriving in a giant tsunami of electronic transmissions.
PBN: What tax law changes should taxpayers be most mindful in filing their tax returns this year?
CUTTING: Taxes are so varied there is no [one-size-fits-all] tax advice. For my clients I’m searching for education deductions, flood damage, energy credits for their homes and unreimbursed business expenses.
