To fee or not to fee (for duplicate copy of lost returns),

[Black Bart]

that is the question.

Seems like I can never quite get myself completely, finally, decided, satisfied with my policy (or lack of one) regarding this issue.

Good customer phoned last week, said she had lost/misplaced a prior year's return and could I please run her another one. Consistent with my policy of "the customer is almost always right" (anything to grease 'em up/get 'em back next time) I said "Sure, no problem; come get it tomorrow."

I don't usually charge for this service. However, this client had multiple rental properties, the requisite E's, accompanying detailed depreciation schedules, plus numerous additional forms (35 pages in all). Meanwhile my Canon laser copier recently conked out and I'm temporarily using a clunky $50 backup inkjet copier which chug-chug-chugs out copies at two PPM. To sum up, I spent a good, solid uncompensated hour copying, collating, and handling this little chore. Adding injury to inanity, the dinky little inkjet cartridge ran dry halfway through and added $15 replacement cost to the irritation (not her problem of course, but still....).

I had not mentioned a fee (and she had not asked), but I ended up not charging her anything because she's (1) an excellent long-term customer (2) never complains about anything (2) her fee's a nice, light-stress $900 (3) I don't want to make her mad (some get upset over what they see as "nickel and diming").

I think the problem's partly that some years back, an ordinary return was like five or six pages and really was "no problem". Not so much now -- with the proliferation of special credits and expanded Ds, Es, etc., everything takes more time and trouble (I estimate my average returns are running 12-15 pages).

Anyway, those are my no-bill reasons for good customers whom I believe actually can't find their copy (some obviously just don't want to look for it) and I just wondered what the rest of you do.

Opinions/views/advice appreciated.

Thanx, BB

[S T]

BB, I have the same problem with billing for what the client might consider small issues, however, they do depend on us and that is what "Client Service/Goodwill" is.

Not saying my approach is correct, but my workaround - (of course anticipating the clients return for the next year) was to increase the fee on that next year billing. I usually will make some notation on my billing for extra services to remind the client or a note to myself, from one tax filing to the next, and show no charge, but reflect in the overall charge,


Sandy

[taxea]

We are required to provide 1 copy. Clients find it easier to call when they have misplaced their copy. I charge 50. for each subsequent copy. I hope to teach them not to throw theirs away.

[kpangelinan]

I will never charge for tax return copies.

I have never charged for copies and get multiple requests throughout the year.....as mentioned already, those fees are built in the tax prep fees for us. The nickle and diming thing will be yet another reason to add to their reasons of leaving someday. Outside of affordability, I don't give my clients any reason to for the need to seek another accountant.

I know it's a different service, but a client started using us for payroll because their last provider charged them $2 every time they needed to add an employee, $1 for this, $3 for that........for me, my profit on this service, just as with the tax prep service, should include these types of, what I call, "maintenance fees".

Because the requests have been numerous for us, this year we decided to provide our clients digital copies of their returns and it's HELPED TREMENDOUSLY on the requests for copies. I've had my staff let them know when they come pick them up and pay, that their digital copy is theirs in case they need additional copies for loans, college, etc. throughout the year and can print them out at their own leisure as many times as they need. Clients love it; I love it.

[JohnH]

My policy is the same - I dont charge for requests for copies of returns when they misplace theirs. I charge enough to handle tasks like this, because I know many clients will take offense at nickel and dime charges. Small clients with lower fees have few pages to copy - large clients with multiple pages have earned the extra effort because their fees are commensurate with the additional work.

When someone requests a copy, I pull up the return on my computer and offer to email them a pdf. They can then forward that to their lender along with the password. In the rare situation in which they actually need a hard copy, I just print the pdf and give/send it to them.

[luke]

fee for additional

copies of previously provided tax return is $25 (which of course has been waived on case by case basis) - Usually when $25 is mentioned they "find" their copy.
Actually had a client stop payment on her $25 check for copies because (are you ready for THIS) her lawyer said that was "excessive"!

[Burke]

I have charged for this on a case by case basis. In particular, for one client who was constantly needing business and personal returns for banking reasons. (Every time he refi-ed or got a new loan, which was often.) And for one who moved to another state, demanded a copy for purchase of a new house, and that it be FedExed to him THAT day, as he was closing on the loan the next day. Typical. He was a PITA anyway, and I was glad to be rid of him. I wasn't sure he would, but he did pay up, probably only because I was still doing his parents. If they need 3 yrs back, yes. Sometimes I use ST's method of wrapping it into the following year's fee. Most large firms will charge regardless of client or reason. So for most of us, it varies.

[AZ-Tax]

$900, how many Sch E's? & additional fees.

I had not mentioned a fee (and she had not asked), but I ended up not charging her anything because she's (1) an excellent long-term customer (2) never complains about anything (2) her fee's a nice, light-stress $900 (3) I don't want to make her mad (some get upset over what they see as "nickel and diming").

BB, how mnay Sch E's we talking here and are you located in big city, little city or rurual? My client has 11 rentals and we created a spreadsheet a couple years ago displaying the income and exps of each rental on one spreadsheet PLUS write on each of his Bank statement debits, the description of his exps (toilet repair, purchase paint, landscaping, property taxes etc.). Then we scan the docs. I charge $700 for the spread sheet and tax prep. The previous tax preparer he said asked for everything orally and never made copies of his exps like Bank statement, cash paid receipt etc. so This is another problem we PROFESSIONAL tax preparers have, preparers that take short cuts then charge basement fees and we are expected by the client, to compete with those basement fees.

Last year I put togehter a spreadsheet of additional services I was going charge extra for: Duplicate tax returns, status of refund while still preparing their return (I have one client that called me 6 times), having to contact client due to missing documents, if I have to call the IRS regarding an IRS error etc. BUT I am yet to implement this additional fee schedule. Based on history, less then 5% of my clients probably will never be subject to these additional services so it would be for those clients that each year I have this extra work. New client for 2011 tax year gave me all her 1099-B statements. I prepared the tax return, e-filed it and 2 weeks later she located another 1099-B. I amended with no extra charge. In 2012 I asked her over and over again, gather up all you tax related docs and make sure you have everything. She replied I have them all. Well I started to prepare her return and I saw there was no cost basis on her 1099-B. When I contacted her about it, she started calling around, calling me back several times telling me she is getting no where and what are her options then she finally obtained the cost basis. I must have spent 2 hours on this in my extreme busy season. This year I charged her extra and she did not seem to have an issue with it but we will see if she returns for 2013 tax year. What I am leaning towards is charging additional fees for additional services on a individual client basis as it happens rather then having the client sign my additional fee schedule.

Luke, a couple years ago I had a client, the same client 2 years prior to that forgot to give me 4 1099-misc forms after I filed her tax return, call me and said she lost her tax return and she looked everywhere and wanted a duplicate copy. Well I thought to myself, if I charge $25, she may leave and all of a sudden a smile came on my face. So I told her it will be $25 for a copy. She never replied. I wonder if she found it cheaper at Wal-Mart : )

[Roberts]

It's been pretty routine the last few years for people working on a refinance to require a copy of their tax return. I just zap off an encrypted .pdf copy and everyone is happy. Takes less than 2 minutes. It would take me longer to produce a bill and mail it.

[ATSMAN]

My policy is the same - I dont charge for requests for copies of returns when they misplace theirs. I charge enough to handle tasks like this, because I know many clients will take offense at nickel and dime charges. Small clients with lower fees have few pages to copy - large clients with multiple pages have earned the extra effort because their fees are commensurate with the additional work.

When someone requests a copy, I pull up the return on my computer and offer to email them a pdf. They can then forward that to their lender along with the password. In the rare situation in which they actually need a hard copy, I just print the pdf and give/send it to them.

Exactly the procedure I follow with most of my clients. I do charge for overnight mail if they are in a hurry to get an actual hard copy.

I am working on my website for next year where they will be able to log in and download and print their own returns. I will keep the last 3 year returns for them.

[mactoolsix]

Why no just use a portal?
Send them a digital copy for free or print a paper copy for a fee (which they have to come pickup on their time).

Mike

[Gary2]

Exactly the procedure I follow with most of my clients. I do charge for overnight mail if they are in a hurry to get an actual hard copy.

I am working on my website for next year where they will be able to log in and download and print their own returns. I will keep the last 3 year returns for them.

Are you planning on getting your own SSL certificate? Using a shared one? Or using a third party service to host the documents?

Even though many hosting services make it easy to set up and use your own SSL certificate, it's not something I'd advise doing. If you don't have web security expertise, then running your own secure web site is like an amateur doing their own taxes.

(Note that I'm not saying not to have your own web site; just that using it for secure transmission of documents requires an order of magnitude more expertise than merely running an informational site.)

[oceanlovin'ea]

Most of the time I would give a client a second copy of their return and not charge them. In the case of printing out 30 pages, I just might tell them there will be a charge due to the size of the return. I might add a little bit to next years fee to make up for the copies.

I really don't have many people that ask for another copy of the return. So it hasn't been a problem.

One of my clients who is also a very close friend needed a copy a couple of weeks ago. All her belongings are in a storage box and she is staying with her son until she can find a house to buy. I KNOW she would never find her return in that box so I gave her a copy. Sometimes you just do the kind thing.

BUT if they are just being lazy...charge away.

Linda, EA

[FEDUKE404]

Generally no charge

We are required to provide 1 copy. Clients find it easier to call when they have misplaced their copy. I charge 50. for each subsequent copy. I hope to teach them not to throw theirs away.

I would personally view this one-size-fits-all approach as a very risky way to do things. (And my intent is not to "teach" my clients anything, especially since many of them are well into their senior years.)

For a "normal" return, if I charge a fee at all for an extra copy it will be modest, separate from any postage to get the return to the client. Of course, in today's world (as referenced by JohnH) it is quite simple to zing a PDF copy of a return to the client electronically. That would take me no more than a minute or two, start to finish, and I could not sleep well at night if I charged a client $50 for that service.

FWIW, I do see a distinct difference between a copy of the "tax return" (only what the IRS sees) separate from having to produce a bunch of supporting documents such as worksheets, depreciation history, etc.

I do reserve the right, if this "problem" recurs on a regular basis, to toss out some "duplicate copy" or "printing/paper" fees. Of course, I can easily just put an adjustment in the regular client fees next season.

Clients frequently appreciate the little things, and what constitutes a minor inconvenience on my part (especially in the off season) could well create some good will/new recommended clients down the road. I hope never to get into a situation like my attorney, who will charge me 0.033 hour at his ridiculous hourly rates to spend two minutes to respond to a simple email activity (actually a phone call would be even worse!). Side note: I've learned to avoid sending any emails to my attorney, no matter how "simple" the matter at hand.

But everyone has to run their business as best suits their own overall needs. . .

FE

[veritas]

I once

copies of previously provided tax return is $25 (which of course has been waived on case by case basis) - Usually when $25 is mentioned they "find" their copy.
Actually had a client stop payment on her $25 check for copies because (are you ready for THIS) her lawyer said that was "excessive"!

Was charged by my ex-attorney for questioning his bill.