GIVE ME - Liberty Tax Service

GIVE ME
LIBERTY
M
A
Volume 3 Number 1 / 2016
G
A
Z
FIGHTING
FRAUD
Tax refund I.D.
theft is on the
rise. Liberty is
fighting back.
GREEN
IS THE
NEW
BLACK
®
I
N
E
Volume 3 Number 1 / 2016
CONTENTS
3 Letter from Founder and CEO
4 Letter from Publisher and Editor-in-Chief
5 From Dropout to Successful Business Owner
9 Stan Phelps Wants You to Win
11 We Are Liberty
13 Look At What Liberty Did This Year
15 Franchisee Close-up: Meet Angelia Alden
16 Can You Spot the Difference?
17 Green is the New Black
21 Combating Tax Identity Theft
23 Beware IRS Phone Scammers Are Lurking
26 They Said “Yes” To Health Insurance
27 Franchisee Close-up: Meet Leslie Lessing
28 Raising Money for Churches and Charities
29 Taxes in the Digital Economy
6
10
12
16
18
26
22
CONTRIBUTORS:
Publisher and Editor-in-Chief: Martha O’Gorman
Executive Editor: Michele Chesley
Art Director: Oliver Dimalanta
Writers: Nicole Gilmet, Catherine Marrin
Guest Editor: Kathleen Guzman
ON THE COVER:
Rachael Lang, our reigning Lady Liberty brings a fresh, colorful
twist to our Fanatical marketing. Full story on page 18.
2
G I V E
M E
L I B E R T Y
29
30
WHAT’S IN A NAME?
NOT MUCH, REALLY
JOHN HEWITT
|
FROM THE FOUNDER AND CEO
I visited a training session last summer and
was asked about the name of our newest
brand – Siempre Tax+.
“What made you pick that name?” the new
franchisee asked.
“Does it matter?” I responded.
Then, I encouraged her and the assembled
group to think about my question. What
did McDonald’s mean before it became
synonymous with fast food? Whoever heard
or thought of a Walmart 50 years ago? And,
even though Hewitt is a name I happen to
like, what did Jackson Hewitt mean before it
became a tax preparation company?
My point is that names don’t mean
anything, initially. It’s the type of company
you build that matters. It’s the service
you provide customers that matters. If we
exceed customers’ expectations and make
our brands synonymous with exceptional
service, then our names have true meaning.
At Liberty Tax Service, we know our success
doesn’t come from some secret sauce.
It’s what we do day in and day out to
let our customers know we’re looking
out for them, and delivering to them
3
G I V E
M E
L I B E R T Y
the best service in
the business. We
couldn’t have grown
to more than 4,000 locations
in 18 years if we didn’t do the hard work
of pleasing customers.
With Siempre, we have an opportunity to
capture a huge market that is hungry for
top-quality tax preparation services. But just
because the market is there doesn’t mean
we can expect customers to flock to us. We
have to demonstrate why they should. We
need to be out in communities, talking to
people and spreading the word about who
we are and what we offer. When customers
visit our offices, we have to exceed their
expectations and get them talking about our
amazing service.
Will they care about our name? Sure,
once we’ve proven ourselves. Then, they’ll
remember our name and refer it to others.
As we head into a busy tax season,
let’s not worry ourselves with
names. Instead, let’s stay
focused on providing the
fanatical customer service
that gives our brand name
meaning.
John Hewitt,
Founder and
CEO
IS IT TIME TO MOVE
YOUR TENT?
I have a good life. I work for a great company.
I love my job.
It’s not like there’s some sort of quicksand
pulling me down or that I’m in a bad situation. It’s just that I haven’t done much recently to change my life, my point of view, or
my dreams and goals.
In that time, I’ve learned a lot about life and
finances and business ownership. Could I move
my tent and share some of that wisdom?
Maybe I could teach a class at the local
community college. Financial literacy is
something too many of us lack. I have the
skills; I have the ability. I could should share
my knowledge. My marketing experience
Maybe you’ve been the owner of one
location for so long that you’ve become comfortable. You’re familiar with the routine. You
can predict how the year will go. But think
about how you felt when you were that risk
taker opening your first store. Think about
all that you’ve been able to accomplish since
then, the people you’ve met, the lives you’ve
touched. What’s stopping you from opening
that second or third store and getting that
feeling again?
FROM THE PUBLISHER
As I said, my tent has been in one place for
quite some time. I’ve known John Hewitt
longer than some of my employees have
been alive. I worked with him at Jackson
Hewitt and helped get Liberty off the ground
and into the history books as the fastest
growing tax franchise.
I guess we all need a little shaking now
and then.
|
To be honest, I didn’t think anything needed
changing. But as the Bishop talked about
“moving your tent,” he really got me thinking
about my life. It changed me in terms of how
I think about myself. He made me question
what I might be missing by maintaining my
own personal status quo.
The more I think about what I can do, the
more excited I become about who I am and
what I have to share. It’s a little disappointing to think that I needed to be shaken by the
Bishop Jakes to awaken to my own reality.
MARTHA O’GORMAN
Recently I was at a conference and was
moved by a sermon given by Bishop TD Jakes.
He talked about moving your tent. Mine has
been in the same place for over 30 years.
would make a great topic to
cover at our local adult education center. Maybe I could lead a
group discussion about women in leadership
roles or mentor future business owners.
What’s stopping you from moving your tent?
I don’t know where this journey is going to
lead me, but I’m basking in it. I feel renewed,
like this is a fresh start for me, and I promise
you, I’m going to make the most of it.
Martha O’Gorman
Chief Marketing Officer
G I V E
M E
L I B E R T Y
4
FROM DROPOUT TO
MILLION-DOLLAR OWNER
Hard work and belief in the system
took Mitch Brown to new heights
Mitch Brown is pacing the floor before his presentation to a room full of eager franchisees. He can’t
seem to get the PowerPoint slides working, and it’s
frustrating him. He growls a little, sucks his teeth,
and confesses to the crowd, “I’m not very technical.”
Mitch will make other confessions during his twoplus-hour presentation.
He doesn’t read books.
He doesn’t like salads.
He thought he knew everything.
But the most stunning might be this: “I did not finish
high school. They asked me not to come back. I have
10½ years of education. No high school diploma.
No GED.”
5
G I V E
M E
L I B E R T Y
Yet, here he is, the CEO of a successful tax franchise
business.
Watching him work the room, you know you can
believe him when he says he got here just by
working hard.
His trajectory in life: He moved out of his mom’s
house at 16. Got his first real job as a vinyl window
installer. Worked his way up to corporate installation
manager, overseeing five locations that installed
windows in high-end homes. He moved to Seattle in
2006 and got into the tax business with his brother
because “it was four months of work each year.”
Mitch will tell you that tax preparation isn’t his thing,
managing stores and growth is. Still, he worked his
tail off in his first two Liberty Tax stores. He did 320
tax returns in his first year. He was everything to his
organization. The stores were successful enough,
but Mitch had a plan for the life he wanted to live,
and two stores weren’t going to get him there. He
opened two more stores in 2007 and developed
his model for how he’d continue to grow. He’d
study territories and growth potential before he
purchased any more stores. If the stores didn’t look
like they could pay for themselves in four years,
Mitch wouldn’t buy them.
The plan worked. By 2010, Mitch had six stores, but
he also had a problem. He was in the way. You know
the type, the micromanager. That was Mitch.
He also wasn’t a disciple of the Liberty Tax system. He
went to trainings, had lunch with other Zees, picked
up techniques and tips that would help him grow
his business, but the way Mitch saw it, he was the
smartest guy in the room. He didn’t call clients, because he knew they didn’t want to be bothered. He
didn’t buy into the guerrilla marketing techniques.
In fact, for his first six years as a Liberty owner, he
was embarrassed when people said, “you’re with
that company with the people who dance.“
Then Mitch had an epiphany, two epiphanies, actually.
First, he realized that he couldn’t be in his six stores
all the time. He had to let go and trust the people
who worked for him. That trust had to start at the
beginning – at the hiring process. He couldn’t just
look for tax preparers who did an OK job and came
back year after year. He needed people who understood his vision and were invested in making the
vision a reality. He needed to help them see how
they fit into that vision and how they might be
able to climb the ladder from tax preparer to office
manager to district manager. He needed to reward
them for great work and not keep people on the
payroll “just because they were breathing.”
Then, he got the question from Liberty CEO John
Hewitt.
John asked if he called clients; Mitch said no.
“Do me a favor,” John said. “Call your clients this year.”
Mitch did, but he confesses: “I was just checking a
box. We didn’t deliver the right message.”
Still his revenue went up 3 percent.
John asked again. “Who made the calls?”
“The year my
attitude changed
was the year
my revenue
really started
to change.”
G I V E
M E
L I B E R T Y
6
My tax preparers, Mitch said.
“Why don’t you have a call center?” John asked.
Because that would cost money, Mitch said.
“You need a call center to free up
your preparers to do what they do
best,” John counseled.
Mitch relented.
His revenue went up 15 percent.
Hmmmm, Mitch thought to himself.
Maybe John knows more about the
tax business than I do.
Mitch shares these stories with
the group because they represent
a turning point for him. They were
the distinct moments when he understood he was being selfish and
arrogant.
pays customers for referring new clients. “I used to
micromanage ‘Send a Friend’,” he says. “I used to
profile my clients. I might say, ‘I’m not paying that
Send a Friend. I had to get over it.”
His revenue
went up
15 percent.
Hmmmm,
Mitch thought to
himself. Maybe
John knows
more about the
tax business
than I do.
From that point on, Mitch made changes that
would pay dividends for his business. The biggest
may have been his change about Liberty’s
“Send a Friend”
campaign,
which
In 2013, with 12 stores, Mitch won
the Choose Your Attitude Award at
Liberty’s annual convention.
“I didn’t recognize it, but Liberty
did,” he says. “The year my attitude
changed was the year my revenue
really started to change.”
Mitch has been in the Elite 18 since
his turnaround. This tax season, his
stores processed 9,900 returns, 100
shy of his 10,000 goal.
As he makes it to the last slide in his
PowerPoint presentation, Mitch exhales then offers his last confession:
“I can’t believe I did this,” he says.
He’s talking about the presentation.
His audience is thinking about his life. His
success. Their story.
Office Manager Courtney Hicks and Operations Manager
Danaia Stuck work with Mitch Brown at his Seattle-area stores.
7
COMMUNITY-MINDED:
Liberty Tax Service is committed to the communities in
which it operates. Here, a Liberty Tax mascot hams it up with
cheerleaders for Old Dominion University in Norfolk, Virginia.
G I V E
M E
L I B E R T Y
8
CONVENTION KEYNOTE SPEAKER 2015
PURPLE GOLDFISH
AUTHOR WANTS
YOU TO GET
STICKY WITH
CUSTOMERS
Stan Phelps wants you to do better.
He’s seen companies that fail to give customers
a great experience, and he knows what happens
to them.
They die.
Stan doesn’t want your business to die. He wants it
to thrive.
THE TRICK?
There is no trick. Just a lagniappe, some cyanoacrylate, and something Stan calls The Goldfish Rule.
We’ll get back to those in a minute.
Stan gave the keynote address at the 2015 Liberty
Tax Convention. The author of What’s Your Purple
Goldfish? brought with him examples, energy,
and ideas to help Liberty Tax franchisees better
understand the value of the customer experience
and how it relates to their bottom line. He
acknowledged that he was preaching to the choir
because “you guys absolutely get it.” But, even
9
G I V E
M E
L I B E R T Y
though Liberty has a fanatical approach to customer
service, there’s always room for improvement.
So, about that lagniappe. It’s pronounced lan-yap,
and it’s Creole for a little something extra. According
to Stan’s book, “the practice originated in Louisiana
in the 1840s, whereby a merchant would give a
customer a little something extra at the time of
purchase. It is a signature personal touch by the
business that creates goodwill and promotes word
of mouth.”
The lagniappe is a great way to get customers
talking about your business, to get them to refer
you to their friends, and to keep them coming back.
It’s all about the customer’s experience, said Stan.
“You’ve got to spend money on experience for
customers you already have.”
That’s where the cyanoacrylate comes in. That’s
the scientific term for Super Glue. No, Stan wasn’t
recommending that we glue our tax customers to
their seats. He did suggest, however, that we need
to create relationships that are “sticky.” We need to
provide service that stays with customers after they
leave our offices, and gets them coming back year
after year.
“If you got the call, would you have done the little
extra?” Stan asked the audience.
He showed numbers from a Gartner study that
found that 89% of companies compete mainly on
the experience they provide.
Panera’s earnings went up 28 percent in the 3rd
quarter and 34 percent in the 4th quarter after
the story was
posted.
Then he shared a story of his former life. “I made
a 60 foot tall M&M Statue of Liberty and floated
it into New York Harbor,” he said. “I gave away a
Mediterranean island for I Can’t Believe It’s Not
Butter with Fabio.”
“All these were successful but not sustainable.”
Stan said he then had a moment of truth.
“I realized meeting expectations is a myth. You
either exceed expectations or you fail.”
Since then, Stan has been meeting with corporate
leaders, business owners and employees to talk
about The Goldfish Rule. In short, five factors
determine how big a goldfish can become. Those
factors can be applied to any business. They are:
1. Size of the bowl or the size of your market;
2. Number of fish in the pond or your competition;
3. Quality of the water or your environment;
4. First 120 days of life or your startup
or grand opening;
5. Genetic makeup or differentiation.
No. 5, Stan contends, is the only one you control.
Do a good job at separating yourself from
everyone else, and your business will thrive.
Stan shared a touching story of a cancer-ridden
grandma and her request for Panera clam
chowder. It was a summer Monday in Nashua,
NH. Panera only makes the chowder on Fridays in
the summer. The ailing woman’s grandson called
the Panera, told his story, and the manager did
the exceptional – she made the clam chowder.
The grandson wrote about it on Facebook. His
mom put it on Panera’s page. The post got nearly
36,000 comments. It resonated with customers
and endeared them to Panera.
To close, Stan walked the audience back to 1957,
when Walt Disney opened Disneyland. Walt
decided he wanted a parade down Main Street.
It would cost $350,000. “The accountants heard
about it and flipped. They said don’t do it; people
are already here. They don’t expect it. That’s
exactly why we need to do it, Walt said. Here at
Disneyland we always need to do more than the
customer expects.”
Then Stan left each of us with one question to
ponder before tax season: What’s the sticky thing
you do for your clients?
te
o
N
y
k
c
i
t
Stan’s S
you do a
o
d
w
o
H
.
G = Giving hing that goes
et
little som
beyond?
ave to be
h
’t
n
s
e
o
nt.
It d
L = Little. gesture is importa
he
n
big, just t
Creates a
.
d
e
t
c
e
p
U = Unex esponse.
lr
e
emotiona
eyond th
b
o
G
.
a
.
r
t
E = Ex
ttle more
li
a
o
D
.
on
transacti
G I V E
M E
L I B E R T Y
10
WE ARE LIBERTY
11
G I V E
M E
L I B E R T Y
★
G I V E
M E
L I B E R T Y
12
LOOK WHAT
WE DID!
LTS YEAR IN REVIEW ★ JUNE 2014-OCTOBER 2015
JUNE 2014
NOVEMBER 2014
Named a “Top 50 Franchise” for Vets
by World Franchising Network
Launched SiempreTax+
first national Hispanic-focused tax brand
AUGUST 2014
DECEMBER 2014
Launched Liberty Accounting
Published Fanatical at Liberty
SEPTEMBER 2014
JANUARY 2015
Named “Best for Vets” by Military Times
Published John Hewitt’s, iCompete:
My Extraordinary Strategy for Winning
OCTOBER 2014
Launched Incentive Program for Military Veterans
Ranked #27 on Forbes list of
“100 Best Small Companies in America”
Liberty and John Hewitt
Named Small Business Influencers
Named “Top 50 Franchise for Minorities”
by World Franchising Network
13
G I V E
M E
L I B E R T Y
Named “Franchisee Satisfaction Award Winner”
by Franchise Business Review
FEBRUARY 2015
Published Obamacare e-Book,
The Ultimate Guide to Health Insurance and Taxes
Named Top “100 Global Franchise”
by Franchise Direct
MARCH 2015
Ranked #28 on Entrepreneur’s Franchise 500
Named a “Top Tax Firm” by Accounting Today
APRIL 2015
Named “Franchisee Choice Winner”
by Canadian Franchise Association
MAY 2015
Named a “Top 100 Franchise in Canada” by Be The Boss
JUNE 2015
Partnered with IRS on Fraud Initiative
AUGUST 2015
Named “Best of the Best” by Hispanic Network Magazine
OCTOBER 2015
Named to the Franchise Times “Top 200+ Franchise” list
G I V E
M E
L I B E R T Y
14
CLOSE-UP:
5 STORES IN SOUTHEAST
NORTH CAROLINA
Angelia Alden
Years with Liberty:
More than 5
Charity begins at this owner’s office
Angelia Alden’s compassion and positive energy
shine, especially in her community. Year-round,
she uses her business as an avenue to support
local charities and organizations. Angelia and her
employees have an internal mission: Educate,
Encourage, and Empower. She hires and trains her
staff with these values in mind. They strive every
day to build relationships and make a difference. In the 2015 tax season, Angelia and her team
supported more than a dozen local charities including:
•Bladen We Care – providing assistance for
Bladen County residents dealing with difficult medical issues;
•
Wings Backpacks Full of Blessings – combating
childhood hunger with bags filled with healthy
food and snacks;
•
His Little Ones Pregnancy Support Services –
offering pregnancy classes and marital support;
•
Boys & Girls Home at Lake Waccamaw –
providing foster care and adoption programs
for children in need;
•
Food Bank of Eastern North Carolina –
collecting food for people at risk of hunger in
34 counties.
Angelia brings the community together at roadside
parties. Over the years, she and her staff have
collected everything from canned goods and
backpacks, to bikes and helmets. During tax season,
each office displays collection boxes welcoming
donations from visitors.
“We support charities because we are passionate
about who they are and what they do for those who
are insecure or in need,” said Angelia.
Angelia’s advice for other franchisees hoping to
make a difference is to be sure that community service
15
G I V E
M E
L I B E R T Y
“We support charities because we
are passionate about who they are
and what they do for those who are
insecure or in need,” said Angelia.
is a part of who you are and not how you market. If
your heart is not in the right place, it will show.
“If we pick a charity just to create a roadside party
or just to draw attention for profitability, we will fail
because we aren’t picking the charity for the right
reason,” Angelia said. “We believe the charities we
support make a better community.”
By August each year, Angelia has her calendar
filled with community events and fundraising for
the following year. Once her plans are in place, she
promotes everywhere with flyers, emails, seminars,
events, and social media. She partners with the
Chamber of Commerce, small businesses, local radio
stations, and newspapers. All year, Angelia remains
on the lookout for opportunities for community
involvement. There are few limits on what she can do
and who she can help with the right team, the right
motivation, and the right attitude.
E
C
N
E
R
E
F
F
I
D
E
SPOCaTn yoTu fiHnd the five details in the?photos
up
below that don’t match
G I V E
M E
L I B E R T Y
16
Answers: Red Hat, brown hat stitching, missing name tag,sunglasses color,
and LTS logo missing on white hat
Green is the
“I love the excitement people get when
seeing me, their reactions are unforgettable.”
– Lady Liberty Rachael Lang
17
G I V E
M E
L I B E R T Y
NEW BLACK
Lady Liberty
doesn’t just
step into
the job. She
sprays it on.
Imagine coming to work each day and transforming into a historical monument. Doesn’t sound like
your average 9 to 5, does it? For Rachael Lang, this
is a normal workday. Rachael is Lady Liberty – in the flesh.
She represents Liberty Tax Service at events
across the country and in new videos that show how
often taxes – and by extension Liberty Tax Service –
intersect our everyday lives. Her transformation is
top-to-bottom art, and it’s anything but simple.
It starts in the dressing room with a little Brittney
Spears on Pandora and the feel of the backstage
on a movie set.
Rachael stars in a series of videos, including this
one, which features a wedding party celebrating
the big event. The videos are designed to show
how taxes are a part of our everyday lives.
Makeup artist Kim Pineda plugs in the airbrush
spray gun and gets to work. She starts with
Rachael’s legs, slowly spraying on layer after layer
of green, until every inch of Rachel’s pink skin
has vanished.
G I V E
M E
L I B E R T Y
18
It takes makeup artist Kim Pineda about
90 minutes to get Lady Liberty ready.
Kim doesn’t use just any green. She has handcrafted the perfect Liberty green. The makeup is a
professional, theater grade that doesn’t bleed, so
those posing for a pic with Lady Liberty don’t have
to worry about the colors rubbing off.
When Kim took on this project, she had no step-bystep guide. There was a lot of trial and error, she
says. She tried fake green nails, and soon realized
they were not practical. She also found that top
stick, a clear tape made for men’s toupees, comes
in handy for keeping things in place.
“At first I didn’t know what direction to take,” she
says, as she finishes up Rachael’s arms and inspects
the work. Now, the duo has got it down to a science
that takes about 90 minutes, from start to finish.
Rachael takes a deep breath and holds it for the
next part. Kim points the spray at Rachael’s face.
The contours come next. Kim dabs a brush into
a white shimmery powder and highlights every
feature of Rachael’s eyes.
Rachael sits incredibly still through it all.
19
G I V E
M E
L I B E R T Y
When she does take a few minutes to talk, she tells
you how much she loves her job. It all began when the
freelance actress got the call from her talent agency.
“All I remember is them saying they needed someone who was good with the general public and no
allergies to green makeup.”
Her first appearance was at a live event on Tax Day
in New York City. “It seemed to evolve from there.”
Evolve it did. Rachael recently starred in a series of
videos designed to show how Liberty Tax Service is
there for taxpayers. The videos show Lady Liberty
coming to the rescue in situations that have tax implications. Earlier in the year, Rachael and Kim made
a cross-country trek, bringing gifts and good wishes
from Liberty Tax to individuals and families that
had been struggling. “Giving people life-changing
support was my favorite part of being Lady Liberty.”
The not-so-favorite part? Below freezing temperatures in Chicago. For the first time in her life, Rachael got to experience what -12 degrees feels like.
Instead of layers of airbrush paint, she wore layers
of Liberty green undergarments, tights, leggings,
and jeans – even green rain boots and UGGs.
Rachael laughs as she begins to tell the story of
that trip. Kim laughs, too, at the mention of
Colorado Springs.
“There was no dressing room,”
Rachael explains, “so Kim had to
do my makeup in a bathroom stall
while I sat on the toilet seat.”
There was a problem with the
electricity, so Kim had to paint
Rachael by hand. The experience
wouldn’t have been so bad if the
toilet hadn’t had an automatic
flusher. Every time Kim made a
brushstroke, she triggered the
sensor, and the toilet flushed.
face. Then it’s time for the wig. Kim gently takes
Rachael’s hair and begins to twist it strand by
strand and pin it up under the crown. While Kim
works, Rachael considers a question: “What’s the hardest part of
your job?”
“Giving people
life-changing
support is
my favorite
part of being
Lady Liberty.”
– Rachael on delivering
Liberty-Tax sponsored gifts
to families in need.
They didn’t need Brittney Spears
for background music that day. “When someone would come into the restroom
and use the stall next to us, I’d say ‘don’t mind
the green feet!’”
“Removing the makeup,” she says
without hesitation. It takes her days
to get the green off, and several
vigorous scrubbing sessions. Let’s
just say she can’t be Lady Liberty
today and go on a date tomorrow.
With the wig set, her look is complete. Rachael Lang is gone, and
Lady Liberty is ready to meet and
greet those assembled for the 2015
Liberty Tax Convention.
This, Rachael says, is the fun part.
“I love the excitement people get when
seeing me, their reactions are
unforgettable.” The green feet are essential because
the Liberty gown doesn’t cover
Rachael’s feet. She puts on the
gown after Kim has finished her
G I V E
M E
L I B E R T Y
20
COMBATING TAX
IDENTITY THEFT
Liberty works with IRS to fight fraud
If you’re a taxpayer in the U.S., you’ve been a victim
of tax identity theft.
to address other kinds of tax fraud, as well. We are
united and committed to protecting taxpayers.”
Maybe you weren’t a direct victim – one of the
hundreds of thousands who have had bogus returns
filed using their personal information. But you
certainly were an indirect victim. The IRS paid out
more than $5 billion in fraudulent refunds in 2013.
That’s millions in tax dollars gone to identity thieves.
THE GROUPS AGREED TO:
•Taxpayer authentication. All will share data at
the time of filing that can help authenticate a
taxpayer and detect identity theft.
And, the problem isn’t going away. It’s growing.
In the first half of 2013, some 1.6 million taxpayers
were victims of tax ID theft, up from 1.2 million in
all of 2012, according to the Treasury Inspector
General for Tax Administration (TIGTA).
That’s one reason Liberty Tax Service and other
tax preparation companies have joined an IRS
effort to combat identity thieves. The collaboration
is unprecedented. It includes a more rigorous
taxpayer authentication process before the release
of refunds and an agreement to share information
and report suspicious activity that will help protect
taxpayers and reduce fraud.
“This effort is just the beginning,” said Liberty Tax
CEO John T. Hewitt. “We anticipate working with
the tax agencies and our colleagues in the industry
21
G I V E
M E
L I B E R T Y
•Fraud identification. All will expand the sharing
of fraud leads.
•Information assessment. Considerations are
being made for a formalized Refund Fraud
Information Sharing and Assessment Center
to more aggressively and efficiently share
information.
•Cybersecurity framework. All will align with IRS
under the National Institute of Standards and
Technology to promote protection of
information technology infrastructure.
•Taxpayer awareness and communication. All
will increase efforts to keep taxpayers informed
about fraud and ways in which taxpayers can
protect their sensitive personal information.
The actions are expected to be completed during
the 2016 filing season.
REDUCE YOUR RISK OF ID THEFT
The IRS offers the following tips to help you reduce your risk for identity theft:
•Don’t routinely carry your Social Security card or any document with your SSN on it.
•Don’t give a business your SSN just because they ask – only when absolutely necessary.
•Protect your personal financial information at home and on your computer.
•Check your credit report annually.
•Check your Social Security Administration earnings statement annually.
•Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts.
•Don’t give personal information over the phone, through the mail or the Internet unless you
have either initiated the contact or are sure you know who is asking.
IF YOU BECOME A VICTIM THE IRS
RECOMMENDS THAT YOU:
•File a report with law enforcement.
•Report identity theft at www.ftc.gov and learn how to respond to it at identitytheft.gov.
•Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
- Equifax, www.Equifax.com,
1-800-525-6285
- Experian, www.Experian.com,
1-888-397-3742
- TransUnion, www.TransUnion.com,
1-800-680-7289
•Contact your financial institutions, and close any accounts tampered with or opened without your permission.
HOW LIBERTY CAN HELP
Liberty Tax also has measures in place to assist
customers who paid for tax preparation services
and who may have become victims of identity
theft, including:
• Free copies of tax returns. Taxpayers may need
access to past returns to help prove their identity.
•Free consultation. Information and tax advice is
available at every office.
•Correspondence assistance. Liberty Tax will
handle IRS correspondence, including letters
and inquiries about tax returns. If a taxpayer’s
identity has been stolen and used in attempt at
refund fraud, the IRS will send a letter notifying
the taxpayer that an income tax return already
has been filed using his or her personal information, or that the taxpayer owes a balance or has additional wages from an unknown employer.
•Identity Protection Personal Identification
Numbers (IPPINs). The IRS offers this service to
expand protection for taxpayers with an identity theft indicator on their accounts. Liberty Tax can
help taxpayers apply.
To find a local Liberty Tax office, call
866-871-1040 or visit www.libertytax.com.
Liberty Tax does take appointments; however,
they are not necessary.
G I V E
M E
L I B E R T Y
22
CONSUMERS BEWARE:
The woman was distressed. Her cell
phone had been ringing non-stop.
The caller said he was an “IRS Agent.”
He told the woman she owed the
government more than $7,000, and
that he would send police to her
door in a few hours to collect. If she
didn’t have the money, the police
would take her to jail, he warned.
Frightened and unsure, she went
to her bank and withdrew the cash.
She was on her way to get a prepaid
With the woman’s permission, he
got on the phone to talk with the
“agent.”
“I thought he might just give up when
he realized he was talking to a tax
preparer,” Dave said. “But this guy
was persistent. He kept insisting the
lady owed this money and the cops
were coming for her. He even gave
me an agent number that matched
the format that the IRS uses.”
These scammers are slick, they
really have people convinced they
owe money, and it’s a shame how
much they’ve been able to swindle
from unsuspecting taxpayers.
credit card when she stopped at the
Liberty Tax office in Pittston, Pa., and
asked for help.
Dave Martin, the office supervisor,
listened to her story. He was suspicious. He knew about the nationwide phone scams because the IRS
had sent warnings. They said the
scams often feature heavily accented
callers posing as IRS agents and
demanding money from unsuspecting taxpayers. The scammers might
even call back pretending to be the
police or a DMV agent who would
revoke a person’s driver’s license.
Dave thought these callers fit
the pattern.
23
G I V E
M E
L I B E R T Y
Dave hung up. He made sure the
woman hadn’t given her information, Social Security number, date of
birth, to the scammers. Then he
called the fraud hotline run by the
Treasury Inspector General for Tax
Administration.
“These scammers are slick,” Dave
said. “They really have people
convinced they owe money, and it’s
a shame how much they’ve been
able to swindle from unsuspecting
taxpayers.”
The IRS said there are red flags
taxpayers should know to avoid
being scammed. Most importantly,
the IRS will never call about taxes
without first sending an official
Phone scam has bilked
taxpayers of $20 million
notice in the mail. The agency also
will never seek a specific method of
payment or ask for debit or credit
card information over the phone.
The phone fraudsters have stolen
more than $20 million since the
scam began in earnest in 2013,
and complaints have skyrocketed.
In 2013, the Federal Trade Commission received 2,545 complaints
about the scam; in 2014 that
number climbed to 54,690. Thieves
have victimized more than 4,000
people, according to the Treasury
Department. The largest individual
loss was $500,000. Most have lost
about $5,000.
The scam continues, even though
tax season has ended. Newspapers
and TV stations across the country
have reported instances of local citizens being taken by the scammers.
Dave is happy that he was able to
help a customer at the Liberty Tax
office in Pittston.
“This lady wasn’t a customer, but
we had an obligation to help her,”
Dave said. “In the end, we saved
her over $7,000.”
If you get a call from someone claiming to be with
the IRS Here’s what the real IRS says you should do:
•If you know you owe taxes or you think you might owe taxes, call the
IRS at 1-800-829-1040. The IRS employees at that line can help you
with a payment issue, if there really is such an issue.
•If you know you don’t owe taxes or have no reason to think that
you owe any taxes (for example, you’ve never received a bill or the
caller made some bogus threats as described above), then call and
report the incident to TIGTA at 1-800-366-4484.
•You can file a complaint using the FTC Complaint Assistant;
choose “Other” and then “Imposter Scams.” If the complaint involves
someone impersonating the IRS, include the words “IRS Telephone
Scam” in the notes.
•You can also visit your nearest Liberty Tax location to ask for help.
Call 866-871-1040 or visit www.LibertyTax.com to find the office
nearest you.
Graphic courtesy of FTC.gov can be found at
https://www.ftc.gov/system/files/attachments/press-releases/tax-idtheft-tops-ftc-complaints-2014-irs-imposter-complaints-more-2300percent/0519-irs-imposter-scams-infographic.jpg
G I V E
M E
L I B E R T Y
24
THEY SAID“YES”
TO HEALTH INSURANCE
AND GOT A BIG SURPRISE
DAVID PEREZ
Years with Liberty: 6,
plans to add 3 more by year’s end
Number of stores: 6 Liberty; 2 Siempre
Location: Texas
Franchise / Area Developer
If you don’t think health insurance is the Game
Changer John Hewitt has said it is, you certainly
haven’t talked to Todd Swicegood or David Perez.
Todd and David are franchisees on opposite sides of
the country, but their experience with health insurance has been pretty much the same. It’s sent more
clients to their offices, boosted their revenue, and
made them absolutely giddy about the additional
service they now can provide to customers.
Both tick off the positive outcomes as if they have
been in a group session together. They haven’t. In
fact, they took different routes to adding health
insurance agents at their stores and arrived at the
same conclusion. David went the Unified Partners
route. Todd is a founding partner of The Benefit Corner.
25
G I V E
M E
L I B E R T Y
TODD AND KAREN SWICEGOOD
Years with Liberty: 12
Number of stores: 7
Location: North Carolina
Here is what they had to say about their first season
with insurance and taxes.
Q: How many policies did your stores do this year?
David: We had 12 agents who helped hundreds
of customers and wrote more than 600 policies.
It added to our client base and helped boost our
customer service because they were people who
walked in and said, ‘I need help.’
Todd: We helped hundreds of customers and wrote
about 1,100 policies in our stores.
Q: How did health insurance affect your tax
business?
David: Our income tax return count was up about 30
percent. We saw growth of about 1,000 tax returns
directly related to offering health insurance.
Todd: More than 60 percent of Affordable Care Act
(ACA) that we did were non-Liberty clients. They
came in in February, after they had had their taxes
done. Imagine what it’s going to be like this tax season when we apply 50/50 to those relationships.
We think the real bounce will be this year.
Q: How did you decide which partner to use to
implement the insurance piece?
David: I had been trying to implement the insurance piece for two years and couldn’t do it alone.
You have to have strategic partners to make it better and easier. I worked with Unified Partners. They
already had carrier relationships and training
material. They had a system, great leadership, no
franchise fee, but my No. 1 reason for partnering
with Unified is John. John is a winner. If John puts
his stamp on it, you know the rest.
Q: What do you see in the future with the tax and
insurance model?
David: My vision for this is with health, property and
casualty and auto insurance, I can recruit enough
people to sell all four products, and we can keep
them employed all year long. We can help customers
in the off-season. Then, when tax season comes, I
won’t need to recruit and train a ton of people. Our
tax school recruitment efforts can be more refined.
When we want to expand, we won’t have to worry
about training new staff, they will already be there.
Todd: We’re a full-line insurance service provider.
We do life, health, annuities, auto. The goal is to
start creating careers. We’re going to train these
agents to also be tax preparers so we can get
multiple value from their experiences. We can create
a tax team that can be there 12 months out of the
year servicing clients. We think that each agent is
a sphere of influence. Each one can create new
relationships, which, hopefully, mean new tax
returns and insurance revenue.
Todd: I have been in the insurance business for about
30 years. When the ACA first hatched, I was looking
at my seven stores thinking there was a great opportunity because of how integrated the health insurance marketplace was going to be with taxes. I called
Ryan Dodson and Scott Curtis, my area developers,
and suggested that we consider the full scope of this
opportunity. Scott, Ryan and two others on the
insurance side partnered with me, and we created
The Benefit Corner. The Benefit Corner is a franchise
model. It offers training and helps individuals get
licensed to sell health insurance.
For more information about ACA and enrolled agents, visit
ZeeNet>Operations>Affordable Care Act or email [email protected].
G I V E
M E
L I B E R T Y
26
CLOSE-UP: Leslie Lessing
3 STORES IN BRITISH COLUMBIA
Years with Liberty: “Since before it was Liberty”
Serving Canadian taxpayers and offering
opportunity for people with disabilities.
About four years ago, Leslie began a relationship
with the Canadian Association for Community
Living (CACL) that has paid dividends ever since.
CACL’s mission is to help people
with intellectual disabilities experience full inclusion in their communities. One facet of their work
is employment outreach because
their clients often have a difficult
time getting into the workplace.
That’s where Leslie comes in.
Leslie used to hire Wavers the
old-fashioned way – Craigslist,
signs in her window, job postings,
and more. Then she heard about
CACL at a convention. She contacted the group and discussed job
opportunities. Soon, CACL sent
prospective employees her way.
“They go
through their
list of people
who are trying
to get into the
job market.
I interview
and hire.”
~ Leslie, on the candidates she
hires through the Canadian
Association for Community Living
Now, Leslie estimates that 98 percent of her Wavers
come from CACL. “They go through their list of
people who are trying to get into the job market. I
interview and hire.”
27
G I V E
M E
L I B E R T Y
Things have worked so well, that Leslie now hires
almost all of her 12-15 Wavers from the association.
Each works about three, 4-hour per week shifts.
Most stay for the whole tax
season. Some have been with her
for more than one season.
“They’re very reliable,” Leslie said.
Their work for Liberty gives them
confidence in themselves and job
experience they can use to land
other jobs after tax season ends.
People in the community notice
what’s happening at Leslie’s Liberty
Tax stores. “We get a positive
response from the public because
they appreciate the fact that we’ve
hired these employees.”
“It’s really
a win,
win, win,” said Leslie. “I
win, the association
wins and the people
who work win.”
WE GIVE BACK
Liberty launches two programs to raise
money for churches and charities
THE FORTUNATE MUST GIVE BACK.
That’s the title of Chapter 11 of John Hewitt’s book,
iCompete: My Extraordinary Strategy for Winning.
As CEO of Liberty Tax Service, John is serious about
giving back and making sure his company is doing what
it can to support every community in which it operates.
To that end, Liberty recently launched two new programs that will help charities, Liberty Gives Back and
The Redemption Fund.
Leah Bryant, our director of corporate partnerships,
oversees both programs, and she’s eager to sign up
churches and charities for the upcoming tax season.
“We prepare millions of tax returns each year at Liberty
Tax,” Leah said. “Just think how much we can help by
providing a portion of the money we make to local
organizations. That’s what we aim to do – give back as
much as we can.”
LIBERTY GIVES BACK
Liberty Gives Back uses our online tax preparation
software to generate revenue for non-profits. Once a
charity signs up for the program, Liberty Tax provides
the charity a promo code it can then share with employees, family friends and supporters. When preparing
their taxes online, customers can enter the specific
code at checkout and 100% of the tax preparation fees
are donated back to the charity. There are no caps on
the amount of funds that can be generated. It’s an easy
and cost-free way to support your favorite charity!
THE REDEMPTION FUND
The Redemption Fund also uses tax preparation as a
way to raise money for churches. Liberty Tax offers
customized vouchers to churches that sign up to
participate in The Redemption Fund. The vouchers are
distributed to church members who bring the vouchers
with them to participating Liberty Tax offices when they
have their taxes prepared. With paid tax preparation,
Liberty Tax redeems the voucher and contributes $50
to the church’s Redemption Fund. There is no cap on
The Redemption Fund. The only limit is the number of
members who have their taxes prepared at a Liberty
Tax office.
Both programs are part of Liberty Tax’s overall mission
to support the organizations that support people in
need. In cities throughout the United States, our franchisees give back to charities and help people in their
local communities.
If you would like for your organization to
participate in Liberty Gives Back or
The Redemption Fund this tax season, contact
Leah at [email protected].
You can also learn more about our programs
by visiting our community outreach page
at LibertyTax.com.
G I V E
M E
L I B E R T Y
28
TAXES IN THE
DIGITAL ECONOMY
E-commerce has added new dimensions to
the tax process. Taxpayers need to understand
the implications before they sign on.
Two tax rules to know before
you raise money online.
GoFundMe, Kickstarter, and other personal fundraising websites have spread like digital wildfire
– their purpose being to assist in raising funds for
different campaigns. You’ve probably donated to a
cause or know someone who started a page to raise
money for a bucket list trip, to rebuild a home after
a natural disaster, or to start a new business. You
may have even started a campaign yourself.
You may think the money collected on these sites is
tax-free. Well, you’d be wrong – and right.
Crowdfunding services have to report to the IRS
campaigns that total at least $20,000 and 200
transactions. Money collected from crowdfunding
is considered either income or a gift.
29
G I V E
M E
L I B E R T Y
NON-TAXABLE GIFTS.
These are donations made without the expectation
of getting something in return. Think of all those Patriots’ fans who gave money to GoFundMe to help
defray the cost of quarterback Tom Brady’s NFL fine
for Deflategate. Those fans aren’t expecting anything
in return – except maybe some satisfaction – so their
donations are considered gifts. Under IRS rules, an
individual can give another individual a gift of up to
$14,000 without tax implications. So, unless a Brady
fan is particularly generous, his or her GoFundMe
gift won’t be taxed.
TAXABLE INCOME.
Now consider that same Brady fan donating $300
to a Patriots’ business venture. If the fan receives
stock or equity in the company in return for the
donation, this is considered an investment. The investment is not taxable, but gains later made on the
investment could be taxable. However, if the business
owner does not offer stock or equity in the company,
the money donated could be considered business
income and the business owner would need to
report it on a tax return.
You have 14 days per year to open your home to others and collect rent free of federal taxes. It’s a provision sometimes referred to as the Masters exemption
because it’s popular with homeowners in Augusta,
Ga., who rent out their places in April for the Masters
Golf Tournament. The tournament lasts seven days,
so the homeowners face no tax implications.
Crowdfunding has been an effective tool for raising
money, but before you decide to open that Kickstarter
account, it’s wise to consult a tax professional.
WHAT IF YOUR VISITORS WANT TO STAY LONGER?
As long as they don’t hit the 15-day mark, you’re okay.
At Day 15, you will owe federal income tax on all of
your rental income. That’s why most renters stick
with the 14-day period. It’s less taxing, you might say.
How 15 Days Could Ruin
Your Rental Experience
You’ve decided to make some extra cash by renting
out your home on Airbnb or Homeaway or some
other rental service. Great, but make sure you read
the fine print, especially when it comes to taxes.
Even if you don’t plan to rent your home for more
than 14 days, you need to be aware of tax issues in
your home state. Some states expect you to collect
lodging taxes on your home or room rentals. Airbnb
collects those taxes in some states, but not all. You
need to make sure you know the rules for your state,
and, if you must collect lodging or other taxes, you
may want to include those taxes in your rental fee.
DO I HAVE TO REPORT MY INCOME TO THE IRS?
The IRS still is catching up on how technology has
changed our lives. Currently, there is no place on
G I V E
M E
L I B E R T Y
30
the tax return for you to acknowledge that you
had rental income that it is tax-free. Why is that a
concern? Well, Airbnb and others will send you a
1099-K or 1099-MISC that shows how much income they have reported to the IRS on your behalf. When the IRS sees the 1099, it may also want to see
some accounting for the income on your tax return.
You should check with your tax professional about
how or whether to report this income. Some tax
preparers advise their clients not to include the
income on their tax return but to keep detailed
records to share with the IRS should they want
to know more about the money. The records you
should keep include your rental agreement, rental
dates and fees charged.
What You Must Know
Before Taking the Wheel
Are Uber drivers employees or independent contractors? This question is being debated lately in a
number of court cases throughout the country. According to Uber, their drivers are independent contractors.
SO, UBER DRIVERS, WHAT DOES THIS MEAN
FOR YOU?
Unlike full-time employees whose employers withhold income taxes from paychecks, independent
contractors are responsible for their own taxes.
And since you aren’t reimbursed for business
expenses, it’s important to know how to claim them
on your taxes.
The money you make as an Uber driver is subject
to self-employment taxes. In January, you should
receive a 1099-K and 1099-MISC form showing the
total amount collected for your rides. Keep in mind
that these tax forms will not include Uber’s fees or
your out-of-pocket expenses.
WHAT ARE YOUR FILING OPTIONS?
•
The standard mileage deduction is 57.5 cents per mile for 2015. Keep a log or journal of all
mileage driven. (If you choose this route, you
cannot deduct actual expenses.)
•
Actual expenses include vehicle lease payments (depreciation if you own the vehicle),
maintenance expenses, gas, oil, insurance or
registration. Track your spending and keep
receipts from every oil change, gas fill-up and
repair.
In addition to mileage and maintenance, you can also
deduct other expenses like your mobile phone bill and
passenger supplies, like mints and water. Additional
business expenses such as fees to Uber and city and
state business licenses may be deductible.
WHAT CAN YOU DO NOW TO PREPARE
FOR TAX TIME?
•Review the tax information section in your
driver account to see your year-to-date
mileage and fees.
•Consider accounting for the self-employment
tax ahead of time by making estimated tax payments or adjusting your withholdings with your main employer, if you have one.
•Hold on to your receipts and keep an accurate
record of your mileage, using a mileage log,
and business expenses.