J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

19.16 Costs of Tax Return Preparation and Audits

You may deduct on Schedule A your payment of fees charged for the services listed below, subject to the 2% AGI floor.

• Preparing your tax return or refund claim involving any tax;
• Preparing and obtaining a private IRS ruling, including IRS filing fees; and
• Representing you before any examination, trial, or other type of hearing involving any tax.

Tax preparation fees include the cost of tax publications and tax preparation software programs. Deductible tax preparation expenses also include fees paid to electronically file your return. The term “any tax” covers not only income taxes but also gift, property, estate, or any other tax, whether the taxing authority be federal, state, or municipal.

Tax practitioner’s fees.

Deductible fees for services of tax practitioners are claimed on Schedule A as miscellaneous itemized deductions (subject to the 2% AGI floor) on the tax return for the year in which the fee was paid. For example, if in March 2012 you paid an accountant to prepare your 2011 return, the fee is deductible on your 2012 return.

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Planning Reminder

Allocate Fees for Tax Advice

There have been disputes over the deductibility of fees charged for general tax advice unconnected to the preparation of a return or a tax controversy. A deduction for fees charged for general tax advice not within these areas ...