TP cornering me on a fee w/o bringing in all there docs.

[AZ-Tax]

Happen to me 3 times this last tax season even after I asked them is this all your tax related docs. One of them was a repeat client. When I quote them a range, they feel I will charge the top of the range. As I obtain more business returns, the less I desire individual clients especially the unorganized ones wanting me to work for next to nothing.

[JohnH]

You need to keep charging the unorganized ones accordingly for your extra effort. They can either pay for your services or go somewhere else. If someone isn't questioning your fee occasionally, then you are probably undercharging.

In the situations in which someone questioned my fee, I told them to just pay me what they think it's worth. If they know what's too high, then they must also know what's reasonable in their mind. Then they can go somewhere else and find someone who meets their idea of "reasonable".

[manyhappyreturns]

When I give a quote on my fees, I say, "based on what you've told me . . ." and I write down what they told me they have and how I arrived at the fee. Then when I'm done with their return I can show them what they told me and how I arrived at the fee, and if it ends up higher than I said, I can say, "well, you didn't tell me about all these other things when I gave you the quote." So many people call and ask, "What do you charge for short form?" Seems like everybody in the world uses the short form, even if they have kids and itemized deductions and a business and rental houses in several states . . .

[JohnH]

Well, if you don't want to do short forms, just tell them $350.
That usually ends the conversation, but if they come on in anyhow then you're happy to do it.

[geekgirldany]

The quoting prices... getting a little old with me. I understand the need as many people don't have a lot of money now days, but seems like there is always something else pops up to make the price higher.

Now I tell people, it will be from $100 to $500.... just depends on the forms.

[DTS]

I'm with Dany on this and hers is my approach, as well. Either they go for it or they don't and I couldn't care less.

[AZ-Tax]

I have tried the inventory approach

When I give a quote on my fees, I say, "based on what you've told me . . ." and I write down what they told me they have and how I arrived at the fee. Then when I'm done with their return I can show them what they told me and how I arrived at the fee, and if it ends up higher than I said, I can say, "well, you didn't tell me about all these other things when I gave you the quote." So many people call and ask, "What do you charge for short form?" Seems like everybody in the world uses the short form, even if they have kids and itemized deductions and a business and rental houses in several states . . .

I considered this approach and even was going to take it a step further by creating a spreadsheet of what the form # the TP brought in (1098-mortgage interest, 1098-T Tuition etc.) then have them sign the spreadsheet but that will take additional time THEN if the TP does ends up bringing extra docs in and I need to raise the fee, there will always be a tax preparer out there that will not charge extra.

[AZ-Tax]

With my past experience

The quoting prices... getting a little old with me. I understand the need as many people don't have a lot of money now days, but seems like there is always something else pops up to make the price higher.

Now I tell people, it will be from $100 to $500.... just depends on the forms.

With my past experience, the prospect would most always feel I am going to charge them $500.

[DaveO]

I tell them the minimum is $100 and will go up $25 to $50 per form or schedule depending on the condition of their records except for "C" and "E" which can be another $100 by themselves.. This gives me enough flexibility most times to price the return correctly.

[JON]

Always go high

why sell yourself short?? You already hacve to charge for your time to guess at what it would cost. Ask what did it cost you last year?? Add to it.

[AZ-Tax]

Prospects have Tendecy to lie about what they paid last year.

why sell yourself short?? You already hacve to charge for your time to guess at what it would cost. Ask what did it cost you last year?? Add to it.

Ask a prospect what it cost them last year, very few times does a prospect remember or tell the truth.

[JON]

Dose not remember

you just have another reason to list him as "I never want him as a client list". If you have a lot of extra time and know youmcan make him into a good client then that is your choice. I think based on what you have told us here he will not start as a good client so the only reason for taking them is you know you will make them into a good client and you have the extra time to do it.

[ATSMAN]

Price range with caveats

I just prepared a 1040 for a new client who had filed an extension on 4/14 because he had to get some surgery. This is the brother in law of one of my clients. He called me Saturday looking for a quote. I asked him to get his 2012 return out and read me a few details. Based on that I gave him a price range with the caveat that if I did the same forms that were in his 2012 return my final price would be within that range. The range varied from $130 to $200.

I ended up charging him only $130 because he did not have as many W2 and 1099-R as 2012 and his 1099-B only had dividends, no asset sales. His wife told me that they have been using the IRS free file for 2 years and now they feel that they would rather spend $130 and get a stress free weekend. Next year I may also be doing a return for their young daughter who lives with them and also uses the IRS free file!

[AZ-Tax]

Atsman, are you located in rural America? Did they have a Sch A?

I just prepared a 1040 for a new client who had filed an extension on 4/14 because he had to get some surgery. This is the brother in law of one of my clients. He called me Saturday looking for a quote. I asked him to get his 2012 return out and read me a few details. Based on that I gave him a price range with the caveat that if I did the same forms that were in his 2012 return my final price would be within that range. The range varied from $130 to $200.

I ended up charging him only $130 because he did not have as many W2 and 1099-R as 2012 and his 1099-B only had dividends, no asset sales. His wife told me that they have been using the IRS free file for 2 years and now they feel that they would rather spend $130 and get a stress free weekend. Next year I may also be doing a return for their young daughter who lives with them and also uses the IRS free file!

Atsman, are you located in rural America? Did they have a Sch A?

[ATSMAN]

Yes I am in a semi-rural area with high unemployment and lot's of kitchen table tax preparers, some of them will come to your house and prepare your return. I have lost a few of my clients (mostly home bound seniors) to them. So I have to be very careful what I quote and charge because it spreads like wild fire around here.

In this particular situation the 2012 tax return had a Sch A and the taxpayer told me that they paid off the remaining balance in Feb of 2013 with his bonus money. For 2013 he came in below std deduction.


I do NOT give blind quotes on the phone, even though some of my local competitors actually publish a price list like $100 for std Deduction, 2W2, 1 state etc.