I recently received my tax refund from the IRS, however, I also got an invoice for $500 from the tax preparation service that had helped me file my taxes. Firstly, I have a very simple 1040 tax filing with no itemized deductions, filed as single, and pretty much as simple as can be when it comes to filling taxes. Such a fee seems way too much given the simplicity of my taxes. I have read, "Some pricing models that are illegal and prohibited by the Treasury Department. As a general rule, tax professionals are prohibited from charging "an unconscionable fee" for providing tax services".
Second, I used their service in the past years while working at a company which provided that service for free. Thus, I had filed with them in the past, and at no fee because my company was covering it. I left my company last year in July, and haven't worked since that time, I was filing the income of the time working with the company, so I was under the impression that my company still covered that time of employment.
Can anybody please give me advice on what is the best course of action? I have contacted the tax preparation service, and I do believe $500 for such a simple return is just ridiculous nonetheless, and they were in no way forthright about this.
Is this considered business malpractice?
Update: After writing the accountants, they agreed to lower the fee to $200, and I agreed to pay.