Chaarging for Research

[erchess]

We all have to stop doing a return occasionally and find out the answer to a tax theory question before proceeding. So the question is how do we arrange to be compensated for this. I'm interested in what others do and think.

[BOB W]

If it was somethng I should of known or am just fuzzy about the issue I don't charge extra> usually. If the client's situation is unusual and not something considered routine, then I charge. I should be up on all new tax laws, if not and I have to research, I don't charge. But if it is a new obscure tax law that only deals with a limited number of taxpayers, I do charge extra.

[Lion]

Learning Curve

I don't charge to go up the learning curve for knowledge that will help me with my work. If someone has a highly specialized situation, a unique investment or company issue, then I charge for my time. When I present my fees, I tell him I had to research his specific circumstance to get him the most favorable tax outcome. If I think it's going to take a lot of time or he's the type to complain about fees, I call him to see if he wants me to research his situation or if he has written documentation from his lawyer or company or broker or whatever. When he compares his lawyer's hourly fee to mine, he usually tells me to go ahead!

[erchess]

I follow the pattern

except that I don't think I have ever needed to research anything that I did not expect to use over and over. Do any of you who have posted bill by the hour? I would have guessed that people who bill by the hour would tend to charge for research because after all where do you draw the line and clock out of that client? When you pause to remember something? When reach for a quick reference? When you break out the tax code or your research program?

[geekgirldany]

If it takes alot of time trying to figure out their problem because I had to research it... then I charge extra. I charge by the form not by the hour. I've learned my lesson from a year or so ago. I use to think it would help my other customers so I would not charge for it. Not anymore. Some things that come up are rare and more than likely won't help another customer in the future... or.... who can remember all that tax code? You have to look up some of it and that may take a few minutes. But when you start getting into hours of research then you should charge.

[Jiggers]

Fees for research

If I am unclear on something on a tax return, I don't charge for the time it takes to do the research.

If I have to do research on something new, out of the ordinary, I would keep track of the time and bill at my hourly rate, as part of my tax return fee as I bill by the form/schedule.

[Gretel]

Same here. I charge by the form and by the hour. Special problems with research or QB mess or a lot of time spent with an unorganized client get charged by the hour.