Hiring tax preparer beneficial for many

There also are trained professionals working at the major commercial tax-preparation chains like the Jackson Hewitt Tax Service Inc., which is headquartered in Parsippany, N.J., and H&R Block Inc., based in Kansas City, Mo.

Schmitt said consumers should avoid dealing with tax preparers who make outrageous promises.

Schmitt added that another red flag is someone who wants to be paid a percentage of whatever refund they get a consumer.

Tyson said that consumers should ask prospective preparers what the focus of their practice is that is, do they specialize in individual returns, small-business returns or, perhaps, work with several generations of the same family? Consumers also should ask how the preparers are compensated.

Although some firms quote fees based on the type and number of forms to be filed, most generally provide estimates based on the time needed to prepare the returns, Tyson said.

A recent survey of 8,000 tax preparers by the National Society of Accountants found the average fee for an itemized Form 1040 with a Schedule A, Itemized Deductions, and a state tax return was $205. A federal and state return without itemized deductions averaged $115.