Tax Preparation Fees Still Affordable, Says National Society of Accountants

ALEXANDRIA, VA, Dec 17 (MARKET WIRE) --
The cost to hire a professional tax preparer is still economical, according to
the National Society of Accountants (NSA).

The NSA biennial survey of nearly 8,000 qualified tax preparers showed that
average
tax preparation fee for an itemized Form 1040 with Schedule A and a state tax
return increased less than 2 percent during the past two years -- rising from
$201 to $205.

Rates for other services also remained low -- the average cost to prepare
aForm 1040 and state return without itemized deductions is only $115, up from
$110 two years ago.

"The tax code is more complicated than ever, and many taxpayers find
strongvalue in having a professional accountant calculate their taxes," says NSA
President Andrew T. Morehead, CFP, ATP, ECS. "This year is even worse because
as of late December, Congress was still considering tax law changes affecting
2007 returns, including a change to the Alternative Minimum Tax, which
could impact millions of taxpayers. Accounting and tax professionals stay on
top of all these last-minute changes, but taxpayers may miss them unless they
know where to look."

The survey found that the average fees for preparing other Internal
RevenueService (IRS) tax forms include:

-- $518 for a Form 1065 (partnership)
-- $685 for a Form 1120 (corporation)
-- $656 for a Form 1120S (S corporation)
-- $430 for preparing a Form 1041 (fiduciary)
-- $1,729 for Form 706 (estates)
-- $521 for a Form 990 (tax exempt)

All these are modest increases from 2005, except for one fee
(preparing a Form 706), which decreased slightly.

Fees also vary by region and assume a taxpayer has gathered all necessary
information. For example, the average tax preparation fee for an itemized Form
1040 with a Schedule A and a state tax return in each U.S. census district are
as follows:

-- New England (CT, ME, MA, NH, RI, VT) - $193
-- Middle Atlantic (NJ, NY, PA) - $209
-- South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) - $217
-- East South Central (AL, KY, MS, TN) - $165
-- West South Central (AR, LA, OK, TX) - $210
-- East North Central (IL, IN, MI, OH, WI) - $181
-- West North Central (IA, KS, MN, MO, NE, ND, SD) - $169
-- Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) - $204
-- Pacific (AK, CA, HI, OR, WA) - $240

Most accountants bill on a flat-fee basis for tax preparation, with
somebilling on an hourly basis. Hourly fees for tax services average $122.12
nationally. Average hourly fees in each region are as follows:

-- New England (CT, ME, MA, NH, RI, VT) - $116.40
-- Middle Atlantic (NJ, NY, PA) - $139.07
-- South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) - $128.76
-- East South Central (AL, KY, MS, TN) - $95.83
-- West South Central (AR, LA, OK, TX) - $105.67
-- East North Central (IL, IN, MI, OH, WI) - $115.02
-- West North Central (IA, KS, MN, MO, NE, ND, SD) - $94.10
-- Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) - $113.54
-- Pacific (AK, CA, HI, OR, WA) - $138.80

Sixty-two percent of accounting firms do not require payment until
returnsare completed and clients are satisfied. Eighty-five percent of
accountantsalso offer electronic filing services, and accountants report that 80
percent of clients eligible for electronic filing choose this option. This is
an 18.4 percent increase over the previous year. Most accountants (77
percent) do not charge an additional fee for electronic filing. If a fee
ischarged, the average amount is $23.15.

Many accountants also hold one or more professional credentials that
demonstrate their experience and expertise. These credentials (and the
percentage of NSA survey participants holding these credentials) include:

-- Enrolled Agents (federally authorized tax practitioners) - 50.1%
-- Accredited Tax Advisors - 25.9%
-- Accredited Tax Preparers - 24.8%
-- Certified Public Accountants - 21.0%
-- Accredited Business Advisor/Accountant - 20.7%
-- Registered/Licensed Public Accountants or Accounting Practitioner -
11.1%

For more information and to use an online search directory to
identify a qualified tax preparer in your area, visit www.nsacct.org and
click on "Find a Professional" or call 800-966-6679.

Contact:
Al Rickard
703-402-9713
Email Contact

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