tax preparation fees

[Burke]

Do not feel guilty about charging for your time especially if it is extensive. Most preparers will absorb some of this, especially for long-term clients. You could always be up front about it, and advise this will happen for non-direct deposit cases. Lots of people don't want the IRS to have their bank account information. Shutdown will no doubt delay check refunds, I fear.

[mastertaxguy]

Query: Most of the "missing refund" queries our office encounters are with taxpayer who did NOT want direct deposit of their federal and/or state refunds. We are contemplating an additional $30.00 charge for such taxpayers to compensate us for the lost time tracking down their refunds when they claim not to have received them. Our average time 'wasted' on this last year was about .75 ours per return.. Yeah, we refer them to IRS and all that, prepare the "lost check" forms for them to sign, and then hide our snickering when they bring in the copy of the IRS check they or one of them cashed at a supermarket.

Thoughts if any to share?

[POCAHONTAS]

Thanks Guys appreciate all the answers

[Toobusy]

I agree with TaxGuytBill! I have seen their invoices they DO NOT charge for DD. They charges Service Bureau and Refund Transfer Fees. The Refund Transfer Fee is probably what Spanel is referring as a DD.

[Dude]

Deducting fees from a refund is kind of tricky considering you are NOT allowed to receive any part of the refund yourself. So this is probably why the temporary bank account created.

[TaxGuyBill]

Nope. It is above and beyond bank fees. Efile only, if you want it DD, they charge an additional $40.

Chris

I'm sorry to doubt you, but I can't imagine them doing that. I know they gouge people with various fees, so maybe they are just charging to e-file?

Revenue Procedure 97-60 (and Publication 1345) prohibits charging for Direct Deposit, so I can't imagine a large chain breaking that rule. They must be charging for something else.

https://www.irs.gov/pub/irs-drop/rp97-60.pdf#page=18

https://www.irs.gov/pub/irs-drop/rp97-60.pdf#page=34

https://www.irs.gov/pub/irs-pdf/p1345.pdf#page=18

[spanel]

I think they charge that fee for taking the payment out of their refund (things go through a third party for that). But they are not allowed to charge for just the Direct Deposit. I don't remember where it is buried in the Code or Regs, but here is an IRS page that says "Providers must never charge a separate fee for Direct Deposit.".

https://www.irs.gov/e-file-providers/refund-returns

Nope. It is above and beyond bank fees. Efile only, if you want it DD, they charge an additional $40.

Chris

[TaxGuyBill]

Tell H&R and JH you cant charge for DD. $40 charge around here for that.

Chris

I think they charge that fee for taking the payment out of their refund (things go through a third party for that). But they are not allowed to charge for just the Direct Deposit. I don't remember where it is buried in the Code or Regs, but here is an IRS page that says "Providers must never charge a separate fee for Direct Deposit.".

https://www.irs.gov/e-file-providers/refund-returns

[Twin Turbo Z]

Hi Anyone please?

Elizabeth ??????

[spanel]

You can charge for almost anything you want.

I think you can't charge for Direct Deposit and those who are subject to Circular 230 (EAs, CPAs, lawyers, etc.) can't charge your fees based on the a percentage of their refund. Otherwise, I think anything else is legal.

Tell H&R and JH you cant charge for DD. $40 charge around here for that.

Chris

[TaxGuyBill]

You can charge for almost anything you want.

I think you can't charge for Direct Deposit and those who are subject to Circular 230 (EAs, CPAs, lawyers, etc.) can't charge your fees based on the a percentage of their refund. Otherwise, I think anything else is legal.

[Uncle Sam]

So far I've charged a flat fee for the form -whether I have to complete 1 column or all of them.

[ATSMAN]

Types of charges for services described on a bill

It really depends on your client base and what the market will bear. Typically for non CPA/Chain Store billings without bank product it runs an average of $150 to $250 in my area. This year with Sec 199A, I believe business returns may garner anything in the range of 10% to 50% bump up.

[MDEA]

You can charge any thing you want. I have seen $1000 fees for a simple 1040 with a bank product.

[Uncle Sam]

There's something I instituted when ACA rules and forms came into effect. The year that a tax return needed to deal with the 1095 forms, and the calculations for premium credits and penalties came into existence, I separately charged a fee for "ACA Compliance Fee", and I'm now doing this as well for any return that involves Form 8867. As soon as I explain to the client what it represents and why, I get no disputes from clients and they readily pay it.