Tax preparation is an important way of organizing our revenue responsibilities. In the United States, tax professionals are hired to facilitate in the taxpaying procedures of a citizen. Hiring a tax professional is really costly. It is generalized that the more complex the taxes and tax procedures are, the more likely the tax preparation price to escalate. According to the National Association of Tax Professionals, there are certain parameters that will be accounted in the pricing methods of every tax professional. First, each tax form or schedule corresponds to a certain fee. Second, a corresponding fee will be charged based on last year's fee plus there will be an additional charge for the client's change of situation. Third, a consequent fee will be charged based on the minimum tax return and the client's situational complexity. Fourth, there is a fee based on the subjective value of tax preparation. Fifth, the hourly rate of the tax professional for the time consumed for tax preparation. Last, there is a corresponding fee for every item of data entry.
The National Society of Accountants has presented a quote of average prices for tax preparation of specific forms. These rough estimates of the cost are based on the fee reports submitted to them by different tax professional members. An average fee of $205 is estimated for Form 1040 with Schedule A and state return. For Form 1040 with state return, the average quoted fee is $115. The average hourly rate of tax professionals usually amounts to $122.12. There are accounting firms in the United States that offers services for tax preparation. The quoted prices of tax preparation usually cost $187.17 or higher for every tax return.
Before hiring a tax professional, the pricing method should be learned appropriately by the client. It is a must that the client will have a full understanding of the fees that are included for tax preparation. The client must be vigilant enough to know the other charges that may apply; some of these charges are for e-filing, copies of the tax returns, tax discussion and audit protection. The client can choose from different tax preparation firms; in order to acquire a fair quote for tax preparation expenses, the client should acquire the price ranges of these firms. The Internal Revenue Service (IRS) protects the clients from fraudulent charges of abusive tax professionals. This ensures proper protection of the rights of the taxpayer.