Tax Prep Fees

[AZ-Tax]

Look at this CPA's fees.

http://www.cpadave.com/Price.html

[FEDUKE404]

Not everyone faces same cost curves

I always feel a person has the right to set his/her prices in line with whatever guidelines need to be considered.

Having said that, those prices seem a bit low and would hardly cover my overhead here (and I'm NOT in a metropolitan area). Software prices rise each year, computer/printing/etc prices increase, and then there are those pesky little PTIN/RTRP/CEU issues that the IRS has tossed out.

One thing that did catch my attention was the 1040-EZ reference. I do not recall the last time I prepared one of those. (And I also would be curious as to how many EITC returns Mr. Ciasto encounters and how he factors that aspect of his business into his fees.)

Oh yes: I was impressed with this background in USN etc. !!

FE

[JohnH]

When I saw the prices, I was expecting the address to be in India.

[Burke]

One thing that did catch my attention was the 1040-EZ reference. I do not recall the last time I prepared one of those. FE

I thought the IRS discontinued that form a year or two ago.

[FEDUKE404]

1040-ez

I thought the IRS discontinued that form a year or two ago.

Does not appear to be that way:

http://www.irs.gov/pub/irs-pdf/f1040ez.pdf

FE

[taxxcpa]

Low fees

They cite one $100 business return for a day care business as an example.
I could cite one or two extremely low fees that I charge someone that I only charge in order to avoid embarrassing them by doing it free.

A single example is not necessarily typical.

Also, those returns are prepared by OR reviewed by a CPA. They probably have a lot of simple returns that the CPA spends about five seconds reviewing.

They probably charge big fees for EIC returns since their ad seems to cater to low income people that want it done cheaply and think it is free if they get a RAL with no out-of-pocket cost.

[kpangelinan]

Wow....pretty darn low....I suppose if you're doing 700 returns or so AND you can have very low labor cost, meaning one or two preparers at just above minimum wage, I suppose one could make a decent profit. I'm not sure how one can get away with such low labor costs, but I don't see them profiting any other way.

700 returns at $50 (on average he states) = $35,000.
Two preparers at 40 hours for 13 weeks at $9/hour = $9,360 + (comp, payroll taxes, insurance, etc.)
Office space: ? $1000 a month for 4 months for $4000?
Office supplies: ? $1000

The guy could've possibly taken home a little under $20k for 4 months.....possible....and that's still only $5k a month and what about the rest of the year? Payroll?

Someone did mention higher EIC fees, which is what I think the guy might not be calculating in his fee average and doesn't call it a tax prep fee, but maybe a bank fee.

[Black Bart]

I

didn't think anybody except used car salesmen doing refund returns could undercut us, but this guy could set up shop right here in Dogpatch and and blow everybody away. Just unbelievable what a crass and callous appeal to the, ahem, thriftier element can do! Maybe I'll email urging him to repent and raise his prices.

Re: EZs, I never use them, but they're not dead; two college kids seeking scholarships brought in the forms this year asking for helpl.

[Gene V]

Interesting fact about East Moline

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Median home price $84,600