Compliance services What do you charge?

[taxea]

I am just curious about what others charge for compliance work. This would include preparing all late returns, temporary IA while negotiating an OIC, preparing, negotiating liability and submitting OIC documents, plus expenses incurred

[Jiggers]

Strickly by the hour.

And I require the following deposits:

$1,500 for a 1040 audit
$3,000 for a 1065, 1120, 1120S, 1041 audit
$5,000 for an OIC

Once I start work, I keep track of the work done and when the deposit is used up, I get another deposit.

[JoshinNC]

Similar

Strickly by the hour.

And I require the following deposits:

$1,500 for a 1040 audit
$3,000 for a 1065, 1120, 1120S, 1041 audit
$5,000 for an OIC

Once I start work, I keep track of the work done and when the deposit is used up, I get another deposit.

to Jiggers

[taxea]

Thanks...Are you saying that you charge separately for each phase you listed or does the OIC fee include the others?

[erchess]

Strictly by the hour here too

I did not even know what compliance work is but I seem to do a good bit of it. I charge $175 an hour and I don't have minimum or maximums but I do look over the situation and estimate how much time is going to be involved and collect all of it up front with an engagement letter that states they are paying for x hours and I will ask for more if more hours are needed. I've got to say I do not understand a different amount to start a 1040 vs an entity because some entities are very simple cut and dried and some 1040s are very complex and may even involve questions of tax theory where I have to show the agent an authority or authorities which I first have to find.

When I was first in the business on my own I discounted prior year returns done in bulk in the off season. That's a poor practice if you are trying to build long term clients because it rewards people for not getting returns done and it attracts mainly people who see tax work as a commodity rather than as a value added service.