Amount to Charge Client-Collections, Notice of Intent to Levy, IA, etc.

[irs_gnfr]

Hello all:

A client who has paid me to prepare 3 years of past due of tax returns for about 1655 (schedule c individual w/Ca state return). Returns were filed. Now , he needs assistance with collection issues. Filing of past due returns were included in the engagement letter but collection issues were not. He's received a notice of intent to levy 30 day letter. I know I can call IRS on his behalf and get an IA easily. He owes less than 50 k and is current with all tax return filings.

My practice is based in the San Francisco bay area and cost of housing is insane here. So, one of the hardest questions for sole practitioners - what do I charge for the services ?

- What can you reasonably charge for this type of service ?
- What is this service worth to client ?

Thanks, David

[Golden Rocket]

No Standard Answer

There is not an answer that will fit all situations. I can only advise

1) Every time I've got involved in this, I've never charged enough, no matter how ridiculous the price appeared at first.
2) Get an advance. Most of the taxpayers in this situation are partially there because their payment priorities do not include paying taxes or help.

[JoshinNC]

For me

$125 per hour, 4 hour retainer paid up front

[Maude Lebowski]

Figure out what you want to charge & double it.

I agree with Golden Rocket. For all sorts of reasons, these things always end up taking more time than I think they will.

[TAXNJ]

Sounds like a trick question when you say "My practice is based in the San Francisco bay area and cost of housing is insane here". You know your expertise and know your fees that client accepted.

So charge the fee you knew before you posted. Otherwise you gonna have to move to charge lower fees.

[JohnH]

What is your hourly rate?
Charge that.
Get a retainer of at least 4 hours' work, and diligently bill the client for work expended on an ongoing basis.