Before processing a tax return, what must be provided to a taxpayer regarding fees and costs?

Providing a detailed breakdown of all costs being deducted is essential for ensuring transparency and compliance with regulatory requirements. This allows the taxpayer to understand exactly what they are paying for and helps them make informed decisions about whether to proceed with the service or seek alternatives. Detailed information about fees contributes to trust between the service provider and the taxpayer, which is particularly important in the context of financial services and tax processing.

By giving a comprehensive overview of costs upfront, taxpayers can evaluate the value of the services being rendered without any surprises after the processing is complete. This practice reduces the likelihood of disputes related to fees and maintains the integrity of the financial service being provided.

In contrast, providing only the total fees after processing does not give the taxpayer the transparency needed to make informed decisions. Similarly, information about potential refunds from the IRS and verbal estimates of service charges do not provide the specificity and clarity that a detailed breakdown does.