Fee Schedule - I Found this Interesting

[JohnH]

I requested a fee schedule from a local firm yesterday because I was referring a couple of clients over to them (not intending to compare prices, just trying to prepare the clients for what to expect). I noticed a couple of entries on the schedule that I really like.

1) For Schedule D, they quoted a flat fee with the following wording "Known Basis - First 10 Trades". Maybe some of you use some wording to that effect, but this is the first time I've seen it. To me it's very succinct.

2) Line item entitled "Records not Kept Properly - We Must Source Records", with a fee range and the hourly rate stated

3) Line item entitles "Unorganized Documents" - same fee range and hourly rate stated as in #2

4) The also had a line item with a fee range for "Copies of Tax Returns", which we've discussed many times on this forum and there are a host of opinions on whether or not to charge for them.

Anyhow, I found this interesting and thought I'd post it (for whatever it might be worth). I don't publish a fee schedule but I'm thinking of incorporating a few of the above into my engagement letter in the future. Maybe something in the above list will promt some other ideas on this forum for how to prepare clients to pay for services when they don't want to take the time to prepare.

[taxmandan]

Nice wording to explain why we don't work for free anymore and all of our work has value. My engagement letter does say that any additional copies of returns will cost $25.

[S T]

Fees

I do have a fee schedule that I provide, and several years ago, I did add the line for Schedule D first 5 lines at $ 15, and then next entries $ 1.50 each (depending on client and entries - I will sometimes discount)

I did the same for W2-G forms, as all of a sudden I was receiving on some clients anywhere from 20 W2G forms to maybe 125 W2 G forms.

If PDF copy of return no charge, if paper and mailed copy of return, then I charge.

I don't have listed the other two items you reference, but that is interesting, and I think I just somehow try to add additional fees to cover time.

Sandy

[JAinNC]

Great post.

Thanks,
JAinNC

[Gretel]

Thanks for posting. I really like the wording for Sch. D. I started to charge for each line item on Sch. D, depending on if basis is know or not.

The items for "unorganized" and additional time needed for other documents I have incorporated in my interview. I give my clients a choice to do it themselves or to pay my hourly rate. If I cannot judge upfront the amount of time needed and it is not more than one hour I will tell my client (when they pick up their tax return) that they can save money next year if the organize better and explain what they can do.

It is always the client responsibility and choice. If they want me, they need to do it my way. If they want to keep the fee at the lowest level possible, they need to do their share.

[erchess]

Interesting Post Thank you John

For Sch D I prefer to charge per transaction. I do not discount per transaction for for those with many of them. I do charge an additonoal "compiling tax information" hourly fee if I have to obtain stock basis or deal with poor record keeping. I have never made up my mind to start charging for return copies but I may at some point.

[Jiggers]

Fees

One thing I learned about fees, I never worry about the competition. I have plenty of it and charge what I want.

For Schedule D, I have a base price of $30 with the capital gains tax calculation, and
$4 for each principal returned/CD redeemed
$6 for each with the correct cost provided by the broker
$13 for each with the information coming from the client's documents.

If I have to do the calculation from the client's documents, especially dividend reinvestments, I charge $150 per hour.

If there is a Schedule D, with no capital gains tax calculation, my base price is $30 plus the above.

For W-2's, 1099R's, 1099G's I charge $2 each.
For W-2G's, I charge $4 each.

[Gretel]

Wow, I thought I was expensive. Where to live Jiggers?