Outrageous fees charged by tax preparers

Millions of Texans pay someone to do their taxes and it turns out some of them are paying too much
February 4, 2014 8:34:40 PM PST
More than 5 million Texans pay someone to do their taxes and it turns out some of them, are paying too much, too much by far.

A 1040 EZ takes just minutes to fill out and you will never guess how much some preparers are charging to fill out this document -- $399. That's right, $400 according to a Houston woman who says she signed up for tax help and when she learned it would cost nearly $400 wanted to leave the office.

She says the preparer would only give her tax documents back if she paid a $35 processing fee.

Area accountants tell us most people can fill out a 1040 EZ on their own, but even if they did get help it should not cost more than $50.

"If someone is charging $399 to prepare a 1040 EZ, there is a catch somewhere," said Bob Martin, Houston CPA.

Something else to worry about is mistakes. The National Consumer Law Center says mystery shoppers found paid returns across the nation riddled with errors last tax season.

The IRS has a guide to help you pick a reputable preparer by CLICKING HERE.

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