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The Short Answer When a Tax Preparer Is in Error
It’s the vehicle version of
online dating. Sites such as
Lease Trader.com and
Swapalease.com match
people eager to escape an
auto lease (without paying thousands of dollars in
dealer termination fees)
with bargain hunters who
avoid dealer fees and a down
payment by assuming a lease
for its remaining term. Both
sites have seen a surge in
traffic. Here are some need-to-know facts before you
make a deal. ..................
Q: Will my tax preparer pay
for his or her mistakes if the
IRS comes calling?
A: It depends on the goof—and on
the preparer. If you shortchanged
Uncle Sam, you’re typically responsible for the taxes you owe, regardless
of whose fault it is, though your preparer might offer to pay penalties or
interest. Both H&R Block and Jackson Hewitt cover those costs; for an
extra $30 to $50 upfront, each chain
will also foot the difference in your
tax bill—up to $5,000. Other tax pros
have their own policies, so always
inquire. And never hire a paid preparer who won’t sign your return.
Finding a qualified pro takes some
care: only California and Oregon
regulate tax preparers. First, ask
people you trust for names, or look
among local members of the National
Association of Tax Professionals
(800-558-3402; natptax.com) or the
American Institute of Certified Pub-
lic Accountants (888-777-7077; aicpa
.org). If your income is low to moder-
ate, consider the AARP Foundation’s
free Tax-Aide service, staffed by IRS-
certified volunteers (888-227-7669;
aarp.org/taxaide).
Getting Into (or Out of) a Car Lease
For sellers Brokerage fees
run from $100 to $240 on
the sites. But watch out for
this hazard: some lease companies will hold you liable
for damage and unpaid fees
even after the transfer. ..................
For buyers Some sellers
will pay you to take over
the lease—an incentive
that may cover the leasing
company’s transfer fee and
what you may owe in state
taxes. Before you sign, check
the mileage allowed on the
lease and get the vehicle inspected. —Don Beaulieu
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Look for credit cards that don’t have...
Money Saver: Avoid These Fees
; ANNUAL FEES
You used to be able to
get these once-a-year
charges waived. Now
it’s not so easy—and
27 percent of new card
offers impose them.
; LO W-ACTIVI T Y FEES
Some Citi cardholders
will be tagged with a
$30 to $90 fee if they
do not spend enough
on their card—generally
$2,400—each year.
; NO-ACTIVI T Y FEES
At Fifth Third Bank, customers face a $19 fee if
a year goes by without a
charge on their Master-Card or Visa accounts.
—Michelle Diament
