Tax Return Fees> Recession

[Gretel]

Thanks, Danny. I looked at the link but could find bookkeeping rates only.

No, I am not a member of NATP but two other organizations. NSA also had surveys, at least in prior years, but I always felt I don't really fit in their membership, which makes their surveys useless to me.Maybe it's time to leave them.

[FEDUKE404]

You charge by INCOME amount??

I start with a basic fee based on line 22 income on the 1040. The higher dollar amount, the higher basic fee. I am going to reduce that amount.

Extremely interesting concept. I have many "simple" returns with a relatively large amount shown on line 22.

Some of my "worst" returns involve a Sch C and all of its related issues, frequently resulting in a far smaller number than the one referenced above. Some Sch D bottom line numbers are "small" but involve a lot of accountant work.

Pardon my poor analogy, but your approach almost sounds as if "according to one's ability to pay" is determinant rather than the complexity of the tax return itself.

I guess what I'm saying is, from my own perspective, the amount shown on line 22 of Form 1040 is essentially a non-issue in my fee determination.

Also, what do you do if you have comparable year-to-year returns, but the income varies a lot (such as a commissioned salesman)??? Do your preparation charges also rise/fall accordingly?

FE

[Black Bart]

New marching orders

Originally posted by Jiggers:
I start with a basic fee based on line 22 income on the 1040. The higher dollar amount, the higher basic fee. I am going to reduce that amount.

Extremely interesting concept...your approach almost sounds as if "according to one's ability to pay" is determinant rather than the complexity of the tax return itself...from my own perspective, the amount shown on line 22...is essentially a non-issue in my fee determination.

I completely agree with comrade Jiggers who is merely following the first rule of business which is: "You have to keep up with the times." This post-election political era may soon require we abandon bourgeois capitalist pricing and adopt policies of the new order:

"From each according to his ability, to each according to his need." -- Karl Marx

P.S. Apologies to CA Joan -- couldn't resist...

[erchess]

I have mulled my reply to this thread

for a while. I guess I come down somewhere in between. I bill by the form and in some cases part of a form or even line entry but my goal is to bill not according to the wealth of the client but according to the complexity of the client's return and the relative probability that I will eventually have troubles out of it.

At the same time I have been known to say that someone could not possibly pay the normal fee for their return and to encourage them to file I would negotiate with them a fee that they could pay. So I guess someone could argue that I am gouging my wealthier clients in comparison.

[JohnH]

You aren't gouging - you're just doing your part to spread the wealth around.
You're just being a good citizen since that's in vogue now.

[taxea]

Tax Return Fees> Recession

A fee based on line 22 makes no sense to me...what is the reasoning behind this?

Cir 230 does not allow us to base our fee on a refund percentage, so I don't understand basing it on line 22 either.

My clients pay for my expertise and the complexity of the return. If they can't afford to pay me they have the option to go to someone that won't do as good a job for them.

I seriously doubt we will be seeing businesses across the board lowering their prices once this "spread the wealth" idea comes into play. I rather think they will be "spreading the additional cost" of having this new administration. taxea