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(schedules) filed, others by the hour. You might pay anywhere from $100 to many thousands of dollars, depending on the complexity of your situation, where you live, the agent's credentials, etc.
• • One good way to get a sense of fees is to ask what they would have charged to complete your last year's return.
• • Be wary of tax preparers who claim they can obtain larger refunds than other preparers. No one can estimate your refund without first reviewing your financial information.
• • Avoid preparers who base their fee on a percentage of the refund.
• • Consider whether the individual or firm will be around to answer questions about the return months or years after it's been filed.
• • Check their credentials and find out if any complaints have been filed with the Better Business Bureau.
• • Reputable preparers will ask to see receipts and will ask multiple questions to determine whether expenses qualify for deduction.
• • Ask whether your return's preparation will be outsourced, which means your personal information could be transmitted electronically to another firm, possibly outside the U.S.
• • Ask about their experience with IRS audits and what their fees would be to represent you in an audit.
• • Ask their policy for reimbursing you for fines, penalties and interest if it turns out your owe back taxes on a return they prepared - many have insurance for that purpose.
• And finally, don't muddy the waters by linking your tax-return fee to buying another product the preparer may be trying to sell, such as a refund-anticipation loan or check, retirement savings account or insurance policy.
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• Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.
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