Average Preparer fee is $258

[dyne]

On a TV program this morning entitled Tax Cheats it was announced by IRS that the
average fee charged by tax preparers is $258.

[MLINDER42]

Average Fee

I would not even come close.I wonder how they arrived at that number?

[MAMalody]

My average fee is also not in that ballpark. I do remember a few years ago participating in a survey from the IRS that did touch on fees. I no longer have that survey to see if it could be used to produce this conclusion.

[BOB W]

Most CPAs in my area are in the $250 minimum area.

[erchess]

Wow

I charge $250 for a long 1040 and two or three extra schedules and that's about as expensive as my 1040s get. I do charge a minimum fee for corps and partnerships of $600.

[jimmcg]

I charge $250 for a long 1040 and two or three extra schedules and that's about as expensive as my 1040s get. I do charge a minimum fee for corps and partnerships of $600.

Not an unusual or excessive charge for a professionally prepared return. In many cases can be even higher.

[JoshinNC]

Never calculated an "avg" 1040, but that sounds

about right for our practice. At least 50% of our 1040's are for partners in LLC's/Partnerships or shareholders in S-Corps, so that tends to increase the cost and complexity.

[taxea]

I would not even come close.I wonder how they arrived at that number?

An average would have to be taken from a total of fees from all tax preparers, nationwide, which would include the big box companies as well as the large CPA companies divided by the total tax returns prepared.

I can see it. Both companies mentioned above charge more than private preparers, I'm sure. I am an EA but my fees don't come close to $150-$250 an hour. Have you ever looked at the average time the IRS says it takes to prepare each form? We would all be rather wealthly if we used their hourly figures and charged even $50 an hour. I think the IRS figures are based on manual preparation.

Another question for those who charge by the hour and not the form is: do you deduct the time that the computer program saves you each year? The first year you have to enter all of the client personal information, dependents, existing depreciation etc. Does you client then get a deduction the following years because your program transfer this info from the first year? Do you charge the client for the forms that are completed totally by the program? The forms that you don't even have to open because the figures transfer from other entries on other forms?

Think about it.

[JohnH]

If I back out the very simple returns and a couple of exceptional cases, I'd probably agree with my average being in the $250 range.

Of course, if I add family members and a few charity cases to the divisor, my true average probably drops below $100.

Guess that's when we have to start asking are we talking average, mean, median, or mode...

[taxea]

If I back out the very simple returns and a couple of exceptional cases, I'd probably agree with my average being in the $250 range.

Of course, if I add family members and a few charity cases to the divisor, my true average probably drops below $100.

Guess that's when we have to start asking are we talking average, mean, median, or mode...

I think we should be asking are we charging enough for our expertise.

[JohnH]

I'm satisfied that I am, for the most part.

[SueBaby]

On a TV program this morning entitled Tax Cheats it was announced by IRS that the
average fee charged by tax preparers is $258.

Wow and I charged $250 to go to an audit 2 years ago and the client complained on that!!

[Mo Sheets]

No where near....

I guess for some practitioners who are located in big cities this might be true, but I would be curious to see the numbers for those of us who live and practice in rural communities. The bulk of mine are less than $100....and I'm happy to have them.

Mo

[Black Bart]

Can't speak for the city folk, but

IRS missed mine by a country mile. As everyone knows, government statistics must be taken with a shakerful of salt -- to give perspective; they define small business as "entities earning less than five million dollars."

I guess for some practitioners who are located in big cities this might be true, but I would be curious to see the numbers for those of us who live and practice in rural communities. The bulk of mine are less than $100

This used to be true for me but my practice has changed. Previously, young wage-earners' simple returns ($45 to $75) held my average down, but I'm not getting many of those anymore. Also, I've steadily/substantially gone up 10-20-30% over the last 3 years for middle-aged and older clients (now run $95 to $350) whose returns have become more complex as they age and accumulate more assets. Of course some don't get more complex -- in fact they become astoundingly simple (shedding tax schedules like snakeskins) and occasionally (pick one) conscience/ethics/a hissy fit compels me to reduce fees accordingly.

All this has jacked my overall average up to $130. But...the "aging clientele" trend has a serious side-effect; to wit: My clients are dying off -- a predictable but very depressing development from my business outlook (to say nothing of the clients' point of view).

...and I'm happy to have them.

Me too, Mo.

[origun]

HRB fees

I expect that one thing that raises the national average is the tremendous increase in fees by Block in recent years. I work for them and am often very embarrassed to have to charge the fees generated by our computer's billing program. A couple (or head of household) with only W-2 income, child care, child tax credit, additional child tax credit and EIC would be $250-$300 in my area. (And this would be with no Schedule A or investment income.) And the return can be done in half an hour or less. It's very frustrating to have no control of prices. However, working for them suits my needs: e.g., seasonal work, great colleagues, no personal overhead such as software or rent, free education, company paid licensing and EA fees.

Some of you assume that "storefront" tax prep businesses are cheap for the consumer...they are not!