HRB Guarantee

[gkaiseril]

If the person goes to the Premium Tax Service, the Peace of Mind Fee is not billed separately but built into the form pricing, which is higher than the usual store front office.

[Burke]

If the client has a bank account, and the directly pays the fees there is no charge for the direct deposit for mail in or e-filed returns and has been none for about 5 years.

If the client does not have a bank account and selects the to have a 3rd party bank, not owned by H&R Block, establish a checking account for the deposit, the 3rd party bank charges an account set up fee and if the client want a check in the office, the bank also has a check fee. This applies to the Refund Anticipation Checks and Refund Anticipation Loans. And if the 3rd party bank processes the state refund the bank has another charge for that.

Thanks for this info. As it turns out, the fees were not deducted from their refund. It was just shown as a minus underneath the refund on a topsheet, I guess, to illustrate the net amt received after payment for preparation. Also, even though all the documents were in the client folder all 3 years, client swore she always refused the Enhanced Plan. (Are they regularly included even if not accepted?) No signature was on documents. So it was just a straight-up return, no extras.

[tpnl]

New client

Recently (within the last week) new client brought in a copy of last years return prepared by HRB. The guarantee price was $50 or $55 from HRB.

Our office has discussed the HRB guarantee several times over the years. Basically they are saying they can add and subtract, because if the client makes an error in the information they submit, the guarantee does not cover those types of mistakes.

Our office policy is if we make a mistake, we subtract the interest on any additional tax liability on the following years return. If the client makes the mistake, we still request on their behalf to waive any penalty.

[MRPLOW]

I do just the opposite. In fact I routinely see people that have been filing MFJ for years, when in fact they should be filing MFS. Unfortunately for them I get to tell them about all the money they have lost over the years.

Here in Ohio 20% of my married couples save by filing MFS for Ohio and Fed vs. MFJ.

Had a couple earlier this year that saved over $1000.

[gkaiseril]

I just read somewhere that they charge a fee for direct deposit? That doesn't sound right, although the HRB fees in this case were deducted from the clients' refund. Would that provoke some charge?

If the client has a bank account, and the directly pays the fees there is no charge for the direct deposit for mail in or e-filed returns and has been none for about 5 years.

If the client does not have a bank account and selects the to have a 3rd party bank, not owned by H&R Block, establish a checking account for the deposit, the 3rd party bank charges an account set up fee and if the client want a check in the office, the bank also has a check fee. This applies to the Refund Anticipation Checks and Refund Anticipation Loans. And if the 3rd party bank processes the state refund the bank has another charge for that.

[powerage]

gotta say...

Based on my interview with client tonight, her filing status has been wrong the last 3 years. The preparer messed up. I had the same thing last year with different clients. Amended the returns and got them another $1500, just by changing to the correct filing status.

I have a mission. I have a mission to tell the taxpayers who are filing in Florida that it is 97% of the time it is better to file jointly. But yet, I run across people everyday who file separate who leave thousands on the table. They usually where given wrong info for a family member co-worker yadda yadda yadda...it is amazing.

Are people really that ignorant when it comes to their taxes?

Taxes should be a year round deal. People need to realize that taxes affect their financial future.

[powerage]

$75 for a ez

I see your point, and I agree, especially after a non-client tried to explain taxes to me tonight. And I did want to ask her she since knew so much about taxes, what are you doing here? A PITA would be charged triple if it was up to me.

I'm basing the price I would charge for the area I'm in. I have already seen more W-2G's this year than I have in my previous 4 years combined. Unemployment here is over 11% and has been projected to get worse before it gets better. A lot of people don't have the money for professional tax prep. My girlfriend's Mom had her return done at the competition, where she has went for years, and she was there for 10 minutes and was charged $108. She was not happy with the price. I'm a little slower. I would have spent 15-20 minutes on it. Most clients like to talk. Let them talk, I find it helps with DD.

The reason why I mentioned Florida is because we only have the federal info to input. Saves a minute or 2. No state stuff to worry about. I have done state returns and city returns for people who are 1040-EZ. For that would be extra, guaranteed.

Seriously, most of the returns I do would be boring to y'all, though I've had a good share of more difficult returns. Yes, of course they would be more expensive.

I could start out at $75 and go down in price if needed.

[luke]

Bees

Bees hits a HOME RUN AGAIN!

[BP.]

If they are literally no brainers, why would anyone pay you to do one? Why can't they just do it themselves?

Answer: What seems simple to you is not so simple to them.

In any business, the price should be set by what the customer is willing to pay...NOT by how simple it is for the service provider to do.

It may be a simple task for a skilled surgeon to cut open an individual and remove a tumor. The surgeon may perform multiple surgeries in a day. Thousands during the course of his/her career. Since it is so simple, should he/she charge a fee similar to the wage a teenager at McDonald’s makes? Or should the charge be based on the fact that not too many other folks know how to do it?

Until we as a profession understand this point, we will continue to undervalue our services. Your fee should not be based on how simple you think you can do it. You have software costs, computer costs, supplies, CPE, and other obvious overhead expenses. You also have a short season in which to make your money. You can't do simple 1040EZ returns full time year round. Maybe two or three months max. You also have to factor in the increasing due diligence the government requires of us. More tax laws to learn. More regulation. Tax preparer registration and licensing will be required for all of us by next year.

I don't care how simple it is to do a 1040EZ in Florida. Simple has nothing to do with it.

Thank-you for your important post.

[gkaiseril]

It is not that simple if one ca not read, comprehend what was read, and follow instructions. It takes all the teachers' time to teach all the students how to pass the standardized test, so they do not have any time left to teach them the simple everyday skills they will need in the real world. So they can learn how to ask 'Do you want fries with that?' for a minimum wage and then pay someone to fill-in their name and enter a couple of numbers perform some addition, subtraction, and lookup a number in a table so they can get some 'free' money and pay a lot of money to a bank to give them a check. so they can buy a new iPhone.

So it comes down to, if you do not know how to do it, it is not simple!

I read a recent photography blog posting by a well known wildlife photographer and it was about his accountant! After the accountant gathered all of the cost the then 21 year old photographer had spent on equipment, the accountant asked 'Is that all?'. The young man was shocked. He had no more money to spend. The accountant explained 'You have to invest in yourself and your equipment if you are going to be a successful in business!'. And the young man has taken that advice and not only is he successful but he continues to learn something new everyday. We invest in annual training, specialized software, and time to learn not only learn how to do the simple tax returns but also the complex ones.

Maybe we should be going out to local schools and explaining about budgeting, checking accounts, credit, and income tax planning and filing.

Doesn't H&R Block have a community outreach program of some kind? Like having an experienced tax preparer giving a one hour presentation about new tax laws, itemized deductions, education credits.

Doesn't the IRS provide a pamphlet of tax tips that tax professionals can provide to local newspapers, use in fliers, and provide to radio & TV stations. The IRS has freely down loadable pamphlets and posters that you can use to promote your service.

It should be simple to show the community you are worth the price of your services. If you provide free seminars or notice about taxes not only do you provide the community with a local service but you also contribute information to the community as a whole.

Simple:

Invest in your service by taking continuing education.

Invest in promoting your business using free IRS products.

Invest in your potential clients by going into schools, churches, community centers and providing tax talks.

[Bees Knees]

Literally, they are no brainers.

If they are literally no brainers, why would anyone pay you to do one? Why can't they just do it themselves?

Answer: What seems simple to you is not so simple to them.

In any business, the price should be set by what the customer is willing to pay...NOT by how simple it is for the service provider to do.

It may be a simple task for a skilled surgeon to cut open an individual and remove a tumor. The surgeon may perform multiple surgeries in a day. Thousands during the course of his/her career. Since it is so simple, should he/she charge a fee similar to the wage a teenager at McDonald’s makes? Or should the charge be based on the fact that not too many other folks know how to do it?

Until we as a profession understand this point, we will continue to undervalue our services. Your fee should not be based on how simple you think you can do it. You have software costs, computer costs, supplies, CPE, and other obvious overhead expenses. You also have a short season in which to make your money. You can't do simple 1040EZ returns full time year round. Maybe two or three months max. You also have to factor in the increasing due diligence the government requires of us. More tax laws to learn. More regulation. Tax preparer registration and licensing will be required for all of us by next year.

I don't care how simple it is to do a 1040EZ in Florida. Simple has nothing to do with it.

[powerage]

the way i look at it

I'm in Florida, so the 1040-EZ's are pretty darn easy. I think I can fill one out by hand faster than I can using software. I used to do mine back in the day way before I knew anything about taxes. Literally, they are no brainers.

Even if I spend 30 minutes doing a 1040-EZ, and I charge $50, I still made $100 an hour.

[joanmcq]

I have an 'early bird special' for my really early W-2 only filers. This year $55. I don't do RALs and have very few of these, but it brings in a few bucks in late jan-early feb.

[Lion]

30 days

...for 30 days AFTER you STOP publishing that fee. In our short tax seasons, that can be problematic.

I don't publish my fees. I don't do anything under $100. Even the last dependent of a current client was $125, mostly because his father is a jerk (I don't prepare father's return; I prepare mother's and she's a sweetheart; but father checked with his preparer first and then had mother bring son's stuff to me!) Most of my dependent returns have kiddie tax, so full price for those. I try to bring new clients on at $500 or more; new entities at $750 or more. Don't always do that. But, I usually show the greater price and provide a discount for continuing clients. PITAs get price increases until I'm happy or rid of them. Nice clients get discounts; nice clients who refer more nice clients get even bigger discounts.

[KBTS]

Circular 230

I believe he may be referring to practitioners covered under Circular 230 requirements:

§ 10.30 Solicitation.

(b) Fee information.

(1)(i) A practitioner may publish the availability
of a written schedule of fees and disseminate the following
fee information —
(A) Fixed fees for specific routine services.
(B) Hourly rates.
(C) Range of fees for particular services.
(D) Fee charged for an initial consultation.

(ii) Any statement of fee information concerning
matters in which costs may be incurred must include
a statement disclosing whether clients will be
responsible for such costs.

(2) A practitioner may charge no more than the
rate(s) published under paragraph (b)(1) of this section
for at least 30 calendar days after the last date on
which the schedule of fees was published.

So if you advertise a given fee schedule, you must adhere to that for 30 days after it was published.