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My Tax Preparer Charged Too Much: What Should I Do?
When the tax season starts or its ending people tend to turn to professional tax preparers for filing their taxes. While most accountants and tax preparers work ethically and honestly, like the preparers at BitAccounting, but not everyone is like us, some guys take advantage of your tax return by not filing it properly or charging extra for their own benefits. They gain advantage of unsuspecting clients through unreasonable fees, fraudulent practices, or lack of transparency. If you’ve ever given the thought why did my tax preparer charged too much. Luckily you are not alone and there is a way to handle this.
Here, we will guide you about:
- Why tax preparer fees can rise.
- Red flags to watch out for.
- What legal protections you have.
- How to file complaints.
- When to switch preparers.
- And how to avoid being overcharged in the future.
Why Are Tax Preparation Fees Increasing?
There are several reasons why a tax preparer may charge more:
- Complexity of your tax return
- Increased scope of services
- Experience level of the preparer
- Location and market rates
- Rising demand during tax season
However, its normal when the fees increase slightly every year still, unexpected raise in fees should be concerning and you should talk to your preparer.
Common Excuses for Fee Increases:
- “We have new software fees this year.”
- “The tax code is more complicated now.” (This should be checked out if your tax situation is the same as before).
- “You qualify for more deductions — so it is taking longer than usual.”
Your tax preparer should be transparent with you because transparency is the main key. Honest and ethical preparers always provide written fee agreements upfront. If your tax preparer is not providing you this agreement then, it might be the time to start asking questions or change your preparer. Don’t need to hesitate, it’s your rightful right!
Red Flags of Unethical Tax Preparers
If you are thinking that My Tax Preparer Charged Too Much, you should look for these red flags:
- They divert your refund to their own bank account.
- Claiming false credits or deductions you’re not entitled to.
- Refuse to sign your tax return or file electronically.
- Charging a percentage of your refund amount instead of a flat fee.
- Asking you to sign a blank return.
This behavior gives you the right to question your tax preparer and sue them if you are facing tax fraud, because in any case of such mishaps the IRS will track you not the firm as they are filing your tax for you but your name is used to file it NOT THEIRS!
What Does The IRS Say About This?
The IRS has a program Return Preparer Office (RPO). If a company wants to get registered, they are required to have a PTIN (Preparer Tax Identification Number) and they must follow the protocols set by the IRS.
If you have concerns that your agent is overcharging you:
- Review IRS guidance on fraudulent tax preparers here.
- Check their credentials (PTIN or CPA).
- Report issues using Form 14157 (Tax Return Preparer Misconduct Complaint).
The Taxpayer Advocate Service (TAS) is also a great service for such situations.
What to Do If You Were Overcharged
- You should request a proper bill in writing or hardcopy. (The bill should be open and verified)
- If you tax preparer is someone new, or you are filing for the first time, compare rates with other filing companies, that is the case when you suspect something is wrong.
- Once your trust is broken, switch to a new tax preparer immediately. If they broke it the first time on purpose they’ll do it again.
- File a complaint on the link given above.
Legal Consequences for Tax Preparers
If you filed a complaint at the right time, before something concerning happens to you, it will happen to them and they deserve that if tax fraud was committed, and these are the consequences for such complaints:
- Their PTIN will be revoked i.e. their license.
- The IRS will perform an audit against them.
- If the allegations are true, they will face criminal charges for tax fraud.
More importantly, if the filed tax was filed improperly by your tax preparer you can face:
- An Audit risk by the IRS.
- You can face penalties by the IRS on tax return fraud.
- Potential legal consequences.
When Should You Switch Your Tax Preparer?
Switching preparer can seem difficult, but it’s the smartest move you’ll ever make when:
- Fees is increased without any prior information.
- Increment of poor communication between you and your agent.
- You are indirectly being forced to sign documents with you reviewing them.
FAQ — My Tax Preparer Charged Too Much
Is it normal for tax preparers to raise their fees?
Yes — but modestly. Fee increases should reflect changes in services, complexity, or industry rates.
Can I negotiate my tax preparer’s fee?
Absolutely. Ask for a breakdown of charges and compare market rates.
How do I know if my tax preparer is overcharging?
Request a written fee agreement before work begins. Be wary if they refuse or pressure you.
What if I’ve already paid too much?
You can dispute the fee, file a complaint with the IRS, and switch preparers.
What happens if my tax preparer commits fraud?
You may still be responsible for your return. File a Form 14157, and contact the Taxpayer Advocate Service (TAS).
Real-World Case Study: When Tax Fraud Becomes a Life Long Punishment:
Hialeah Tax Preparer:
In March 2025, a tax preparer from Hialeah, Florida, has been sentenced to almost five years in federal prison for leading and helping in preparing such tax returns, which she knew were false with the IRS. Additionally, she was also declared to pay over $20 million to the IRS in the way of damages. The guilty plea was made by the preparer in December 2024 to the charges of having made out and sent in the tax return, which was not true but really, the government suffered the loss of a lot of money. This is a typical situation in which tax service is fraudulent; the preparer did a great job in the industry. The above-mentioned allegations are a clear-cut example of the immense penalties of tax fraud, and there is no point in going to another tax preparer.
Taxpayer Protections and Smart Alternatives
The IRS and TAS are here to protect taxpayers:
- Use online tax software or consultants like BitAccounting.
- Self-Assessment tax filing
- Hire an agent from services like BitAccounting.
Pro Tip: Learn More About Business Expense Tracking
If you’re a business owner and facing bookkeeping issues, don’t forget to track business expenses separately to stay audit-safe. Check out this detailed guide on how to keep track of business expenses using spreadsheets and apps for practical tips.
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