Tax Prep fee for self-employed

[taxxcpa]

Anything changed

I don't think there has ever been explicit rules on how to allocate a fee. Some Schedule C's take five minutes to prepare and others take hours. The logical way to allocate would be based on time spent. To bill that way would require a stop watch to make sure you got it exactly right.
I think it really boils down to using the SWAG method (Scientific Wild A** Guess) to allocate the fee..

[Jiggers]

Allocating fees

I do returns that have a C, two or three or more E rental and royalty properties, F, several depreciations, etc.

I bill by the form + basic fee.

I think the IRS will accept any allocation of the fee, as long as some amount goes to Schedule A for the personal portion.

During audits, I have never had the IRS question the allocation because it is such an insignificant amount. If it was questioned, how will the IRS allocate the fee, and what is the tax difference. The IRS has more important issues to look at on a return.

I think I can justify the way that I allocate my fees.

[JG EA]

I originally learned that it is based on and allocated by income and not any other means. Has that changed through the last fifteen years?
I have always totalled the income from
pg one of 1040, Sch C, Sch E etc and allocated the tax fee by percentage of each versus total income.

I think you learned what someone just thought. Tax preparation fees should never be allocated on income.

[Kram BergGold]

Disagree

Unless you charge by income this makes no sense. You allocate based on how you arrive at your fee. If it is per hour then you allocate by time spent. If by form you allocate by form charge.