Roni Lynn Deutch

[Zee]

Bee, you nailed it. All to often many of us non-CPA, non-attorney types give away our services for free.

Many single practioner CPA's also grossly underprice their services as well...not sure about attorneys.

[taxea]

Roni Lynn Deutch

To Joanmcq....mind letting us in on how much you charge for an OIC? taxea

[Jiggers]

My OIC Fee?

I require a deposit of $5,000.

Been there, didn't charge that, client couldn't pay the balance.

I charge 1½ times my 1040 tax preparation rate.

If they want me to do it, they are going to pay for it.

[joanmcq]

I charge by the hour my usual fee. $100/hour. It depends on how much paper I've got to process and how many times I have to ask for it...for example, if you bring me three month worth of half the stuff I've asked for, and then don't bring me the rest for 6 months, then I've got to ask for and process the 1st bunch of stuff again because its not current.

The most expensive one was $1,000. I ate hours too, but it was for a friend.

[taxea]

Jiggers
Does the $5000 retainer include the tax returns that need to be prepared or is that in addition to?
For compliance clients I ask for a $3500 retainer plus the cost of preparing returns due (which includes obtaining IRS held income documents for each year). I find that the retainer usually covers the cost of preparing the returns for filing.

Then I instruct the client to take the returns to the taxing agency and obtain a receipt. Once I get the receipt of the filed returns I discuss IA or OIC with client. What they opt for determines the additional costs.

I do nothing until I get paid for the work. If they don't pay for the IA or OIC or, if there is not enough left in the retainer balance, I do nothing. taxea

[Jiggers]

OIC Deposit

Jiggers
Does the $5000 retainer include the tax returns that need to be prepared or is that in addition to?

This is for the OIC only.

I charge by the form/schedule for doing any 1040/1040A return.

I charge by the hour for 1041/1065/1120/1120S/709.

[taxea]

Roni Lynn Deutch

Looks like I need to reconsider my fees! taxea

[erchess]

To Those of You who collect Retainers

Do you deposit the funds in a non interest bearing account? When I was taking my first course years ago I was told that it was virtually necessary to not get interest on client funds because if interest were paid it would belong to the clients not to the Professional. I have since been told here that I may have been told wrong. What would govern at this point for an EA - OPR or State Law or perhaps both?