Tax preparation services are firm that prepare tax returns for a fee. Tax-preparation services are a lot like those auto tune-up centers at malls—except they’re good with numbers. Many of these tax preparation services are franchises.

A tax-prep service will take your tax-related paperwork, fill out all those scary tax forms for you and then file the paperwork after you review and sign a release with the IRS and state tax departments. There are also an handful of government funded free tax preparation services as well as online and offline tax preparation services.

Free Tax Preparation Services

Volunteer Income Tax Assistance Programs (VITA) are designed to help those in the low to moderate income tax bracket. These are people earning anywhere to from $42,000 and below and CANNOT prepare their own taxes. Those people helping you file your taxes are certified volunteers who have received tax preparation training.

VITA sites are generally located at community centers, libraries, schools. Most locations also offer free electronic filing. For more information on VITA sites closest to you call 1-800-829-1040.

Tax Counseling for the Elderly (TCE)

Persons ages 60 and older are eligible for assistance under the tax counseling for elderly program. Those offering assistance are trained tax preparers.

Volunteers providing tax counseling are most often retired individuals associated with non-profit organizations receiving grants from the IRS. For more information on TCE call 1-800-829-1040.

Association for the Advancement of Retired Persons (AARP) Tax Aide Counseling

The AARP, as part of the IRS-sponsored TCE Program, offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP’s Internet site (www.aarp.org)

The Armed Forces Tax Council (AFTC)

The military also has a strong Volunteer Income Tax Assistance (VITA) Program. They are trained to address military specific issues ranging from combat zone tax benefits to the effect of the new Earned
Income Tax Credit (EITC guidelines) Military personnel and their families get free tax help!

The AFTC consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps, and Coast Guard. The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families.

Paid Tax Preparation Services

Paid Service include reputable companies such as Jackson Hewitt, H&R Block. You also have your mom and pop variety services, the ones where come may hire the man that is dressed in all the patriotic fanfare waving his yellow taxes done sign. Let us not forget the house call tax prepares who visit and to your taxes in your home for an agreed upon fee.

1. Do your due diligence. Visit the companies websites

2. Steer clear of firms that claim the ability to get you larger than life a returns

3. Seek experience over low cost. These are your taxes and you can never be too careful.

4. You want a firm that has a system for double-checking a preparer’s work, look for companies that have safe guards in place.

5. Take advantage of online options that the companies offer.

6. Grill and ask questions to tax-Prep Services

7. Find out how their fee is determined. Most tax-prep services have a set schedule of charges. Get an estimate. Avoid any services that charge percentages of your tax return.

8. Find out who will be doing your return. What credentials do they have? Have they had problems in the past with returns they have completed and what was the resolution of these problems?.

9. Find out there policies with regards to penalties ad mistakes. Find out what happens if a mistake made by a preparer results in a penalty charge. Many larger firms guarantee their work and will pay the penalty for errors on their part. Get a clear understanding of your personal responsibility and their definition of mistake.

10. What’s your privacy policy? Is your information secure? Will they hound you the future with marketing that is aimed at pushing their services down your throat?

11. What about audits? Do they have CPAs, enrolled agents or tax attorneys that they use? And are these people accessible to you should you need them?

12. As always check with the Better Business Bureau

Whatever options you choose for tax preparation be very careful of what is known as tax preparer fraud. Be sure to look over your own taxes. Do not sign blank documents. And safeguard your privacy at all times.