Amendments

[spencer]

What's the general feeling toward charges for amendments. I just did a regular client amendment with a corrected W-2.. Very simple, not clients fault, not my fault. Since she's a regular client I didn't charge. Even if the amendment is caused by client error
I'm not sure what the correct fee might be, if any. Comments?

[BOB W]

What's the general feeling toward charges for amendments. I just did a regular client amendment with a corrected W-2.. Very simple, not clients fault, not my fault. Since she's a regular client I didn't charge. Even if the amendment is caused by client error
I'm not sure what the correct fee might be, if any. Comments?

Because all amendments require Fed & State here in NY I start out with a $75 Fee.

[RitaB]

Depends

What's the general feeling toward charges for amendments. I just did a regular client amendment with a corrected W-2.. Very simple, not clients fault, not my fault. Since she's a regular client I didn't charge. Even if the amendment is caused by client error
I'm not sure what the correct fee might be, if any. Comments?

If it's nobody's fault, and easy to fix, no charge, unless this is a PITA client. In that case, I charge.

If it's their fault, I charge according to the difficulty, and the PITA factor gets figured in, too. I generally charge $35 if minor fix. Now, if the clown forgot to tell me about 43 stock transactions cause he didn't think an exchange was a sale, that's completely different.

I actually lost a doctor client once because I charged $100 to amend a return to report 24 stock transactions. Actually, the doctor was OK, Wifey was the one all hot and bothered about it. Bet her day at the spa was more than $100.

[thomtax]

Since I live in an area of the country that does not cost like in large metropolitan areas, in a case like this, it would be a minimal charge. Of course, in New York City, the minimal charge would be 2-3 times what I would call minimal. Sometimes, if I like the person, for the goodwill and word of mouth advertising, I might not even charge if it is real simple. But then again, I do not depend on this business for my existence - it's what brings me above the bare existence, not much, but barely. .

LT

[Gretel]

I actually lost a doctor client once because I charged $100 to amend a return to report 24 stock transactions. Actually, the doctor was OK, Wifey was the one all hot and bothered about it. Bet her day at the spa was more than $100.

Is this the total charge? Just for reporting 24 transactions it could be that amount depending on how well basis info is available. The original tax return then would have been more expensive already.

We probably need to differentiate between the fee for the amended return and additional forms to be charged for.

I charge for amended returns depending on client and situation. It's never under $50 for ones I charge plus whatever additional forms we need, exceptions apply.

[RitaB]

Well yes

Is this the total charge? Just for reporting 24 transactions it could be that amount depending on how well basis info is available. The original tax return then would have been more expensive already.

We probably need to differentiate between the fee for the amended return and additional forms to be charged for.

I charge for amended returns depending on client and situation. It's never under $50 for ones I charge plus whatever additional forms we need, exceptions apply.

I charged $100 for amending the return which was necessary because the client failed to give me information regarding 24 stock transactions, and IRS sent them the Good News with a fat bill. That charge includes everything attached to 1040-X. And, no, the basis was not straight forward. I had to deal with spreadsheets from their broker, who made close to $2000 "serving" them. They only lost about $14,000 when the dust settled.

The original in this case DID happen to cost more than $100. It was actually huge, and their record keeping / presentation was horrible. (Imagine that.) Doc also begged me to take them as clients even though I told them I was too busy already.

However, if he had only had a W-2, the original would have been less than $100. The amended return would have still been $100.

People with investments need to figure out their reporting obligations, BTW.

[RitaB]

This just in

Nice gentleman just dropped off his stuff. Said he had to call about a second mortgage interest amount. Said the company always sends it late. He wrote in the amount on his 2008 1098 from them.

I noticed that he did not have the form when he filed last year. I will amend 2008 for free just cause he's a nice guy, and he will appreciate it. Happy Friday.

[luke]

my charge

is $65 for a true amended return (plus whatever normal charge is for other forms needed) - if it truly wasnt client fault I will discount fee BUT again whose time/effort is being expended to correct a return? (I always tell the client that of course THEY can prepare the amended return themselves and save my fee)?

[dsi]

My minimum for X's is $75.

[Lion]

Charge

Especially if I amend during tax season, I charge for all new forms and maybe $100 for the X including CT, probably more if NY too. I don't charge more than 1/3 the original price if a simple change of an item or two. For something complex, I'd probably quote at least as much as their original and offer a discount if they'll wait until May.

[fliszt]

wow.

Am I ever over priced!! I charge $175 for a 1040/Sched A/B etc amendment for a person off the street. For existing client I start at $125 and then knock off $25 or so. (depends on which client -- some receive corrected 1099 INT/etc and are low income persons (below ~$20k) and I charge them $40. I have some right now I'm working on. But all in all, regular client would be the $100 mark.
Larry

[BOB W]

Am I ever over priced!! I charge $175 for a 1040/Sched A/B etc amendment for a person off the street. For existing client I start at $125 and then knock off $25 or so. (depends on which client -- some receive corrected 1099 INT/etc and are low income persons (below ~$20k) and I charge them $40. I have some right now I'm working on. But all in all, regular client would be the $100 mark.
Larry

OFF THE STREET amended returns I charge for doing the original return (less printing and packaging fees) and then another fee for the 1040X & State X.

If and when the X forms can be E-filed, my fees will drop substancially for existing clients. Off the street X forms will still require a fee for the recreation of the original return and then a small fee (based on work involved) for the amended issues.

[RitaB]

Nah

Am I ever over priced!! I charge $175 for a 1040/Sched A/B etc amendment for a person off the street. For existing client I start at $125 and then knock off $25 or so. (depends on which client -- some receive corrected 1099 INT/etc and are low income persons (below ~$20k) and I charge them $40. I have some right now I'm working on. But all in all, regular client would be the $100 mark.
Larry

I know I am undercharging for existing clients. Especially first time around.

I HAVE made a statement to a couple of folks who've had to amend more than once cause they were in such a hurry they filed before getting all their forms. I lose patience after a while.

And, frequently, when a DIYer says they need to amend, I'll encourage them to do it themselves (knowing they can't). After they take a look at 1040-X, they are happy to pay me.

[spencer]

Thank you all very much

I know I am undercharging for existing clients. Especially first time around.

I HAVE made a statement to a couple of folks who've had to amend more than once cause they were in such a hurry they filed before getting all their forms. I lose patience after a while.

And, frequently, when a DIYer says they need to amend, I'll encourage them to do it themselves (knowing they can't). After they take a look at 1040-X, they are happy to pay me.

Very interesting and helpful comments. I'm going to charge more.

[Lion]

Off the Street

I charge an arm and a leg for off the street amendments and won't touch them until after tax season. As other preparers have said, I also charge for the original and then an additional fee for X.

By the way, the fastest way to amend when the original is not in your system is to simply prepare an original the way it should have been. Then call up your X forms, KEEP the current information in column C, do NOT tell your program to move it to column A. You manually type in their original numbers as filed into column A. (Don't try to re-create their original return in your system; because their errors and even rounding errors can make that impossible, or at the very least, time consuming. They already filed it, so you don't have to reinvent the wheel. Just prepare the return correctly with all the information to be used as the As Amended column C and force their original numbers into As Filed column A.)