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Itemized Deductions Schedule-A


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Old 10-19-2013, 02:08 AM
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Red face Tax Preparation Fees Limit

I know large amount of tax preparation fees can trigger a red flag.

However, what if that LARGE amount of tax preparation fee is supported by check images and invoices, is it still possible to report it. Sure, it's a big help to generate refunds!

Should there be a question....or audit, do you think those evidences would suffice?

Thanks a lot for your help!



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Old 10-19-2013, 12:15 PM
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Quote:
Originally Posted by justr8hr View Post


#1;I know large amount of tax preparation fees can trigger a red flag.

#2;However, what if that LARGE amount of tax preparation fee is supported by check images and invoices, is it still possible to report it. Sure, it's a big help to generate refunds!

#3;Should there be a question....or audit, do you think those evidences would suffice?
#1;It depends; the IRS does not regulate how much a preparer can charge. Except that it can not be excessive, which leaves it pretty much open. . However,Basically, Tax pros use a variety of methods for setting prices for tax preparation services. As a result, finding out what's a fair price to pay often proves difficult. The only general conclusion is that the price for tax preparation services increases depending upon the complexity of the tax return. Inevitably, clients and tax accountants might disagree over the appropriate price of tax preparation service. You should be aware that regulations issued by the Treasury Department protect the client in fee disputes. Client are always entitled to receive their original tax documents back from their accountant, even if the fee hasn't been paid. By the same token, accountants can keep any forms, schedules and documents they have prepared themselves. I guess you can contact the IRS for ore info in detail on your issue.

#2; As mentioned above, Tax preparers use a variety of pricing strategies. Some charge by the form, more complex tax forms being priced higher than simpler tax forms. Other preparers charge by the hour, so the longer it takes to prepare a return, the more you will pay. Other firms write up an invoice for a fixed price, based on their estimates of how complex the return will be. All these methods come down to one thing, really. The more complicated your tax return, the higher your fee will be. you can and should ask to speak with the manager of the firm or a tax preparer. Ask them why the fee is so high. Most firms have a policy.. If you are displeased with the level of service you received and feel the fee is not representive of the level of quality you received, you need to find out how they calculated your fee and why they think your return was particularly complex.

#3;AS mentioned above.it depends on the situation I guess.



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