Preparing form 2553, what would you charge?

[ChEAr$]

Doctors do doctor stuff.
Dentists do dentist stuff.
Plumbers do plumber stuff
Lawyers do lawyer stuff

Shade tree mechanics try to do their stuff

And of couse we do our stuff

That's right! And I don't practice law.

As an aside, I've noticed over the years that many EA's tend to be almost paranoid about "getting into trouble" somewhere along the line. Perhaps it's because every time we think we understand circular 230, IRS publishes a new edition with even more stringent rules in it. Another influence is that in this crazy tax game, IRS plays with a stacked deck - they have all the trump cards it sometimes seems. EA's who carry E & O insurance probably have to be more careful in order to maintain their coverage. I dunno about that.

[kpangelinan]

responding to Chear$

I was being sarcastic. I knew what you were asserting and with only a few posts, it just seems absolutely ridiculous to make the assertions you were making.

That's right! And I don't practice law.

As an aside, I've noticed over the years that many EA's tend to be almost paranoid about "getting into trouble" somewhere along the line. Perhaps it's because every time we think we understand circular 230, IRS publishes a new edition with even more stringent rules in it. Another influence is that in this crazy tax game, IRS plays with a stacked deck - they have all the trump cards it sometimes seems. EA's who carry E & O insurance probably have to be more careful in order to maintain their coverage. I dunno about that.

I don't think so, I've been licensed for about 10 years with E&O and I haven't seen anything over the past decade to be concerned about if you're doing the right thing.

I've also noticed, in my small town, that attorneys get incredibly angry at me for telling or showing the client that there are things they can do without having to spend $1000 an hour (yes, I said an hour) to have an attorney do it for them......this is the stuff that give's good attorney's a bad name. I'm 100% ok if the attorney believes he's worth that and there's certainly nothing wrong with charging whatever he/she wants to charge, but what gets me is they get angry when the client goes to someone else who will charge $50 an hour (NON-LEGAL WORK, that the attorney makes the client believe is legal work). It's this anger that I speak of that get's attorney's (in my local area anyways) to try to force the legal issue of someone without a law license practicing law. I've had it happen to me personally and this club of attorneys can get pretty darn territorial when their high priced fees look like price gouging.

[kpangelinan]

Doctors do doctor stuff.
Dentists do dentist stuff.
Plumbers do plumber stuff
Lawyers do lawyer stuff

Shade tree mechanics try to do their stuff

And of couse we do our stuff

I think what happens is lawyers try to charge higher level fees for lower level work that doesn't require a law degree.

An example this week in my office was an attorney (not a tax attorney mind you) charged a client $20k to represent him in a traditional audit (examination) for 2008. We've heard all the stories, right: the client was scared, thought he needed an attorney, etc. He was referred to me by a friend of his who went through a normal IRS examination in which I was the representative and could not believe the fee difference and I wasn't CHEAP!

He was being audited also for 2009 and 2010 and couldn't afford to spend an additional $40k for representation and was resorting to just paying the additional taxes assessed at around $20k until he spoke to my client and I told him I estimated my fees to be around $2-5k for both years and would bill him hourly, depending on how long the examine goes, whether it goes to appeals, petitioning tax court, etc. I saw his paperwork and it was all pretty standard stuff....schedule C deductions and such. Nothing criminal.

[ChEAr$]

I can see that Maine is one tough state!

Couple of months ago, one of my long standing clients came by to see me, said he wanted to go into business again. He had heard that incorporating was the way to go,
maybe something about a so called "S" type? (grin

These days though, I told him, most people opt for the LLC, cheaper in the long run and less paperwork required. also told him last time one of my clients formed one to succeed his proprietorship, his lawyer charged $700 to do it. Although I could have helped him download the free form from the state secretary of state's web site and helped him fill in the blanks, I called a lawyer I know and asked him how much he would charge. His fee was $150 plus filing fees, which finally worked out to about $260, give or take.

Next step of course was to fill out the 2553 for the federal election.

I hope he never takes any work on in Maine OR Oregon. (Grin

[veritas]

Twice you have

That's right! And I don't practice law.

As an aside, I've noticed over the years that many EA's tend to be almost paranoid about "getting into trouble" somewhere along the line. Perhaps it's because every time we think we understand circular 230, IRS publishes a new edition with even more stringent rules in it. Another influence is that in this crazy tax game, IRS plays with a stacked deck - they have all the trump cards it sometimes seems. EA's who carry E & O insurance probably have to be more careful in order to maintain their coverage. I dunno about that.

inferred I am "afraid". I find that annoying.

[veritas]

I have a different opinion

I was being sarcastic. I knew what you were asserting and with only a few posts, it just seems absolutely ridiculous to make the assertions you were making.



I don't think so, I've been licensed for about 10 years with E&O and I haven't seen anything over the past decade to be concerned about if you're doing the right thing.

I've also noticed, in my small town, that attorneys get incredibly angry at me for telling or showing the client that there are things they can do without having to spend $1000 an hour (yes, I said an hour) to have an attorney do it for them......this is the stuff that give's good attorney's a bad name. I'm 100% ok if the attorney believes he's worth that and there's certainly nothing wrong with charging whatever he/she wants to charge, but what gets me is they get angry when the client goes to someone else who will charge $50 an hour (NON-LEGAL WORK, that the attorney makes the client believe is legal work). It's this anger that I speak of that get's attorney's (in my local area anyways) to try to force the legal issue of someone without a law license practicing law. I've had it happen to me personally and this club of attorneys can get pretty darn territorial when their high priced fees look like price gouging.

does that make me ridiculous?

[kpangelinan]

does that make me ridiculous?

Not you, your assertions.

[kpangelinan]

I can see that Maine is one tough state!

Couple of months ago, one of my long standing clients came by to see me, said he wanted to go into business again. He had heard that incorporating was the way to go,
maybe something about a so called "S" type? (grin

These days though, I told him, most people opt for the LLC, cheaper in the long run and less paperwork required. also told him last time one of my clients formed one to succeed his proprietorship, his lawyer charged $700 to do it. Although I could have helped him download the free form from the state secretary of state's web site and helped him fill in the blanks, I called a lawyer I know and asked him how much he would charge. His fee was $150 plus filing fees, which finally worked out to about $260, give or take.

Next step of course was to fill out the 2553 for the federal election.

I hope he never takes any work on in Maine OR Oregon. (Grin

I saw a local (Maine) invoice from an attorney for $2500 to start a corporation. Even $700 isn't bad compared to that. Dang.

[ChEAr$]

inferred I am "afraid". I find that annoying.

Please do'nt be. I prefaced my remark with "As an aside." and was not directed at anybody.
Lest of al a fellow EA.

[veritas]

sorry

Please do'nt be. I prefaced my remark with "As an aside." and was not directed at anybody.
Lest of al a fellow EA.

thoght I had deleted that post.