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Archive for April, 2008


Last Minute Filers: Caveat Tax Preparer Emptor!

tax prep - last minuteCaveat emptor - Latin for “let the buyer beware” is just as applicable to tax prep services as for tangible goods.

The approaching April 15th tax filing deadline (just 57 hours left in California at the moment of this post!) has many Americans racing the clock to file their federal taxes. Monday brought a warning for taxpayers dealing with finding a service or someone you trust before you file.

A foreign language interpreter, Armar Ainaya, has only been in the U.S. for a few months. He recently went to a national chain for help filing his taxes.

“And after 10 minutes she said, ‘OK that’s it. We’re done.’ And i said, “OK done. That’s it? OK?” said Ainaya.

Ainaya said he only worked the last two months of 2007 and earned less than $4,000 — but he was charged $327 to prepare his taxes.

His coworker, Calley Hollon, tried to help him dispute the charge without luck.

“We got extremely rude treatment, absolutely unwilling to answer unwilling to disclose,” said Hollon.

The Better Business Bureau said 19 percent of complaints against tax preparation companies are over billing disputes.

Seven percent claim the tax preparation companies were rude and 6 percent say they never received a refund.

The BBB said problems only increase the closer we get to the April 15th tax deadline.

“Consumers who wait to file their taxes at the very last minute they’re rushed, in some cases not making the best decisions and also not reading the fine print in the terms and conditions of the contracts they are signing,” said Erin Jones of the BBB.

“Maybe I misunderstand her because my English you know, not very well. I thought the company maybe charges you 20 bucks? 50 bucks?” said Ainaya.

He now knows he should have asked more questions including what the cost of the service would be. Next year, he plans to ask friends and coworkers to recommend a tax preparation service. And he’ll be sure to file his taxes in advance of April 15th.

If you have a problem with a tax preparation service, in addition to filing a complaint with the Better Business Bureau, you can also file a complaint against a tax preparation company with the IRS.

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