Tax Preparer

This is officially the first week of tax season. By law, employers had to distribute W2s by Jan. 31. For most of us that means tax refunds are as good as spent.The average refund is $1,000, according to Dom LaPonzina, IRS spokesman for the Baltimore-Washington area. And 70 percent of those filing tax returns will get a refund.So why postpone the pleasure? You owe it to yourself. That's the thinking that's popularized the tax preparers' come-on, "Get your rapid refund here, folks."While the companies deliver what they promise, just beware that this time-sensitive service has its price.

Sometimes, addressing the concerns of the fund-investing public leaves a few open questions. Here are three - with answers - that readers shared after some recent columns: In your column on calculating the cost basis of funds, you didn't cover my problem: The funds I bought about 20 years ago were sold, and the firm that runs them now says it doesn't have my original cost information. My tax preparer says that if I sell and can't figure out the cost, I should just use zero. That doesn't seem very tax wise, so how do I come up with a cost basis?

Chicago. -- You can choose your own moral for the story about the Clintons and their income taxes.It's not an idle exercise. What you conclude may help determine how successful a term President Clinton has and whether he gets a second one.The president and his wife may, or may not, have underpaid the IRS over the last decade or more, either accidentally or deliberately. Mr. Clinton admits the possibility that their joint returns may have mistakes.''I don't think we owe any extra taxes, but I'm not sure yet,'' the president told reporters.

MORE THAN half of the 130 million taxpayers expected to file federal returns this year have yet to do so, and if you're one of them, you may still be wondering which is the best way to file. You can stick to old-fashioned paper, pencil and eraser, or file via computer or over the telephone if eligible. Maybe you should hire someone else to do the job. Within these options are more choices. For instance, do you buy tax-preparation software or pay a Web site to use its software? What do you look for when hiring a tax preparer?

One on One is a weekly feature offering excerpts of interviews conducted by The Evening Sun with newsworthy business leaders. Herma J. Hightower is district director for the Baltimore district office of the Internal Revenue Service.Q. There have been many changes in the tax form in recent years. What are the major changes in the 1990 income tax form?A. The basic changes affect the Form 1040A. Additional lines have been added to the 1040A to allow for the reporting of retirement income, estimated tax payments and tax credits for the elderly.

Michael D. Walls is the kind of guy who loves the new, more complicated Maryland tax form. He loves the separate calculations for state and local taxes, the 10 new lines, the four extra work sheets.Walls is not a sadist. He's a tax preparer, and business is picking up."Much, much busier," Walls said as eight customers sat waiting in his cozy brick office on Light Street in South Baltimore. "We're happy as can be about it."It's a different story elsewhere in Maryland. People filling out their tax returns are figuring out that the rules are different now for local and state taxes, requiring more arithmetic.

The tax season ended in April for most of us, but for some consumers their tax headaches are only about to begin. That's because their tax preparer — without their knowledge — changed their return to boost the refund by thousands of dollars and pocketed the extra money. Taxpayers often find out about the fraud only months later when the IRS comes knocking to demand repayment. Preparer return fraud has been around for years, but taxpayer advocates say the crime is growing.

 The Baltimore CASH Campaign has announced 15 sites where low- to moderate-income taxpayers can get free tax preparation this season from IRS-trained volunteers. Free tax preparation is available for families with income of under $50,000, or singles earning less than $25,000 for 2012. Consumers can set up an appointment online or by calling 410-234-8008. Here are the locations:   Neighborhood Housing Services 819 Park Ave., 21201 Appointments only Not wheelchair accessible Enoch Pratt Library 400 Cathedral Street Appointments only 1199 SEIU 611 N.Eutaw St., 21201 Appointments only Southern Community Action Center 606 Cherry Hill Rd. Appointments only Bon Secours Community Works 26 N.Fulton Ave. Walk-ins Welcome Drop off Service available Mayor's Office of Employment Development Mondawmin Mall, 3rd Floor 2401 Liberty Heights Ave. Appointments only on weekdays Saturday Appointments and limited walk-in space available Northwest Community Action Center 3939 Reisterstown Rd. Appointments only Center for Urban Families 2201 North Monroe Street Appointments only Northern Community Action Center 5225 York Rd. Appointments only PNC Bank 12E. 25thSt.

The Baltimore CASH Campaign this tax season will have 18 sites in Baltimore and two in Baltimore County where tax filers can get free tax preparation. The service is available to singles with income last year under $25,000 and families that earned less than $49,000. The nonprofit announced the sites and details Tuesday. One new feature is that filers will have the option to have all or some of their tax refunds go into U.S. Savings Bonds. Four of the sites also will be able to help families fill out the FAFSA form that must be sent in to receive federal student aid. Call First Call for Help at 410-685-0525 to find sites offering free tax preparation.

Accounting students at the Community College of Baltimore County will offer free assistance with 2011 federal and state tax returns to members of the community, as well as school staff and their fellow students. The service, through the Internal Revenue Service's IRS Volunteer Income Tax Assistance (VITA) Program and supervised by CCBC instructors, will be offered Wednesdays, 2-4 p.m. on the third floor of the Y Building on the Catonsville campus, 800 South Rolling Road. Those who have a hard time preparing the forms on their own and want help must make less than $50,000 a year.