Bakersfield Life

The tax man

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     Tax season always feels like a desert that you must cross in order to get from the happiness of the winter holidays to the carefree joy of summertime. It’s a treacherous place that’s littered with W2s, 1099s, and a million paper-clipped bundles of business receipts. And just like any other journey, if you don’t plan for the trek accordingly, you may find yourself lost in a strange place with no money in your pocket and no way to get home.
     Dick Nelsen has been helping people prepare for that annual journey for more than 50 years. With a jovial disposition that battles against the stern, joyless image that we’ve all grown to associate with the “Tax Man,” it’s clear to see why Nelsen has been in this business for so long. “Have fun. Get your taxes done,” says Nelsen. And he means that … seriously. That motto is spelled out on a prominently positioned sign in his office. Plus, each of the 10 Liberty Tax Service offices that he owns in Bakersfield and Delano with business partner Brian Holmes are equipped with a variety of ways to make tax season a little more enjoyable — complimentary soft drinks, popcorn and freshly baked cookies. “We have a popcorn machine in every office,” says Nelsen. “We make popcorn once or twice a day, and when we get into the office in the morning we bake cookies.” This is the first year that the free goodies have been available to Liberty clients, and the company plans to bring the concessions back next year.
     The philosophy behind Nelsen’s demeanor and the friendly atmosphere at the office is simple. “People come in and they’re upset because they have to pay taxes,” says Nelsen. “So you have to be in a good mood. When they leave they’re in a better mood.”
     Nelsen started out in the tax industry back in 1960 with H&R Block. He retired from the world of tax returns and e-filing in 2002 and explored a number of different business ventures, including owning a USA Baby store and a furniture store. “I ventured out into some things that I knew nothing about,” says Nelsen. But the tax industry lured him back as he eventually began doing tax returns here and there for family and friends. He then started working part time at Liberty Tax Service in 2002. By 2008 he was a franchise owner.
     In early March, Nelsen was experiencing the brief lull that occurs every tax season. “We’re busy from the last week of January through the first three weeks in February,” says Nelsen. March is slow, then everything picks back up again on April 2.” During this time Nelsen’s Liberty locations handle about 80 returns per day. The number goes up as the April 15 deadline gets closer. The rational behind this ebb and flow is simple: “Usually the people who file late owe money,” says Nelsen. He also notes that that number is mixed in with people who are self-employed. Thankfully, not everyone participates in the last-minute rush. About half of Nelsen’s clients file by Feb. 18.     
     This 3½-month period leads to very long days and equally lengthy nights for Nelsen. An average day during the busy season begins at 8 a.m. — it’s a cyclone of checking messages, looking over returns, looking over more returns and, thankfully, baking cookies. The work doesn’t usually end until midnight.
     If you still haven’t made an appointment with your tax man or woman, there is still time. And if your ’09 receipts are a little unorganized, Nelsen says that’s fine too. He recommends putting all of your receipts, W2s, 1099s etc. into a shoebox, and bringing them in. “I say a shoebox because a shoebox is small,” says Nelsen. “Don’t bring in a big box … or you’ll scare us.” Even if you’re a little less than perfectly organized he recommends filing the forms anyway. It’s always easier to file an amendment then to be faced with a penalty.
      To avoid the last-minute rush to file your ’10 taxes, Nelsen says that organization is the key. Keep all of your receipts organized throughout the year and check in with your tax preparer from time to time in case any new laws have been put into effect that would impact your return. And if you find yourself getting really stressed out this year, next year, or any other, Nelsen reminds us of a very important fact: “At least you only have to pay taxes once a year.”