First, a disclosure that I am a CPA and prepare tax returns for my clients. There is a big difference between CPA firms that prepare tax returns as part of their accounting practice and commercial tax companies that offer rapid refund and refund anticipation loans. CPA firms charge a fee to prepare their clients’ tax returns, generally, based on the time incurred to prepare a return. I cannot speak for other CPA firms in the area but my firm does not charge separately for e-filing (refunds can be received by our clients as quickly as seven days for federal refunds and two days for state refunds if they choose to e-file) and we do not offer any refund anticipation loan services. Mr. Franchot’s point, if you read his department’s press release (Jan. 30), is that many lowincome taxpayers in Maryland go to commercial tax stores (typically not CPA firms) to file their simple returns and get hit with unnecessary and large fees for requesting advances, when they could wait a week and get their refund without loan costs (yet still need to pay a tax return preparation and e-file fee). He also notes that there are nonprofit groups that assist low-income taxpayers prepare and e-file their tax returns for free.

Absolutely. Tax preparation for most low- and moderateincome individuals is a fairly straightforward process and refunds can be direct deposited into your bank account with a few days if you file electronically. The Maryland CASH campaign’s network of organizations provides free tax preparation for low- and moderateincome taxpayers statewide. Typically, federal refunds are deposited directly into your bank account in seven to 10 days, and state refunds are deposited within one to three days after electronic filing. Given these parameters, it makes little to no sense to spend up to $500 for assistance you can obtain for free. To find out if you qualify for having your taxes prepared and efiled for free by trained CASH Campaign partners, call 1-800-492-0618. Free tax preparation sites are now open statewide — see www.mdcash.org for locations in your area.

In general, if you are very low income and do not have many complications on your tax return then you should find the least expensive way to get your tax return prepared. There are services that will help you prepare your tax return for little or no fee if you need it. Comptroller Franchot is correct in saying that many will lose much of their refund through paying high fees to preparers or for rapid refunds. Even if you had no income, you may be eligible for a tax credit that would result in a check to you, but you have to file to get it. For those that always get a refund, you can also get the money faster by not having it withheld in the first place. By having it withheld and then getting a refund you have given the government an interest-free loan! You can ask your employer to withhold less based on your tax situation. If you stop by the Maryland Tax Office they will help you complete your Maryland return for no charge and even e-file it for you. They are located at 100 W. Patrick St., room 2110 and can be reached at 301-600-1982. That being said, in many cases a professional tax preparer can help make sure you take all the deductions that you are entitled to and make sure you don’t get in trouble with the IRS. If you’ve watched the news lately, you’ve seen two high-profile Cabinet nominees that both incorrectly prepared their taxes. They would have been much better off paying a professional!

This is a tough one. Was Mr. Franchot making a blanket statement about H&R Block, Jackson Hewitt and others? I have never dealt with any of the commercial tax preparers, but I don’t think it’s fair to assume that there are not some good, hard-working, honest people at those companies who want to do a good job, especially if it’s a very simple return. You, as a consumer, will have to make that call based on your level of comfort with the individual you are dealing with. As far as the “rapid refund” (or high-interest loans), you should stay clear of those at all costs! I would avoid that temptation with all of your might. Note: If you made less than $42,000 last year, you may be eligible for free tax preparation services. Go to www.mdcash.org to find out more.