Tax preparation
From Wikipedia, the free encyclopedia
Tax preparation is the act of preparing the filing of income taxes. Because United States income tax laws are considered to be complicated, many people and corporations seek outside assistance with taxes.
Tax preparation may be done by the filer, with the help of a Certified Public Accountant, with the help of a tax preparation business, or with the help of tax preparation software and online services.
The Free File Alliance provides free electronic tax filing services for individuals with less than $50,000 adjusted gross income.
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[edit] Controversy
The cost of preparing and filing all business and personal tax returns is estimated to be $250-$300 billion each year. According to a 2005 report from the U.S. Government Accountability Office, the efficiency cost of the tax system—the output that is lost over and above the tax itself—is between $240 billion and $600 billion every year. That means Americans spent for preparation roughly 20% of the amount collected in taxes.[1][2] In addition, tax preparation businesses have been plagued with controversies such as over Refund anticipation loans and tax laws are so complicated that even H&R Block has miscalculated its own taxes. [3]
[edit] See also
[edit] Notes
- ^ Summary of Estimates of the Costs of the Federal Tax System by the U.S. Government Accountability Office
- ^ The Times is still wrong on taxation By Bruce Bartlett
- ^ H&R Block Fumbles Its Financials CFO.com, Today in Finance, August 02, 2005
