New tax system affects tax preparers

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In January of 2018, the Trump administration new tax system went into affect.

It changed the amount of taxes people pay throughout the year by changing the tax bracket people fall into.

With taxes due April 15th here in Michigan, tax preparer Milton Price, owner of MJP Tax Services, has a lot of returns to finish up.

And he’s not too fond of the new tax system.

“A lot more paperwork… I’m going through more paper than I did before,” he said.

For his clients, they may like it.

“My people are getting about the same. Basically everybody getting about the same, maybe a little bit more back,” he said.

But for Price, there are more regulations on people like him.

“I could be fined over $2,000 on one tax return,” he said. “They got more fines and penalties out there on the tax preparer.”

According to the IRS, the average tax return is down 8% compared to this time last year. The number of refunds also dropped almost 25%.

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