Tax preparation fee

[Uncle Sam]

What about the time 1040s were on white paper, 1065 was on yellow paper and 1120s were on blue forms?

[ATSMAN]

That summer PTINs were announced, I jumped on my dial-up internet and grabbed one; mine has four leading zeros

Mine has 3 leading zeros and I think I did not use it the first tax season fearing that the returns may get held up because my Soc was missing. I also grabbed an EFIN but did not start e-filing until my street was wired for DSL. I had too much problems with those dial up modems on my street with constant hangups. And yes my first tax software was EZ Tax a DOS program.

[TAXNJ]

......Its funny. Most of the younger generation could not survive without computers and the internet. Let alone do a tax return by hand !!....

Should not blame only the”younger” generation but also the “older” generation, especially when many posts and/or reply posts either “blame” the tax software and say to “do an override” when they mostly don’t reference/read/ understand the tax laws and/or say “my software says I can’t do it that way”.

One could always go back to doing returns “the old way” or use the benefits technology offers.

[BOB W]

What about the time 1040s were on white paper, 1065 was on yellow paper and 1120s were on blue forms?

Humm.... I don't remember that one..... I started in 1975, must be before that....???

Are you talking about the Carbon Sets?

[Twin Turbo Z]

Definitely changing business plans this year. Time to slow down, do less returns and charge more. As Bob mentioned a few posts back. Good game plan !!

[Twin Turbo Z]

Humm.... I don't remember that one..... I started in 1975, must be before that....???

Are you talking about the Carbon Sets?

Started in 1977 here !! I still have and use carbon paper from time to time. Grand kids think its magic !! They have me print off blank forms and they play tax office. Better than playing Dr. !!!

[BOB W]

I give my hat off to the newbies (last 10 years) that are licensed CPAs or EAs as the the licensing requirements are much stiffer than the "Old Days". Tax laws have changed with too many interactive parts that effect too many issues even with a "simple return". I don't know of anyone, even on this board (although I can bet one or two or three here would give it a grand effort and be super at it), that would be able to complete a return "by hand". Just look at when you make an entry and the program carries it to 1,2 or 3 other places/forms. Law makers know that software will solve those interactive calculations.

Don't get me wrong, I would not even try nor would I be able to complete a return by hand any more. I'm just too spoiled to even think of trying.

[Anarchrist]

I have a millionaire friend who does his return by hand every year. One year he forgot to check the box that Sch D was required and they sent it back to him.

[WICPA]

I give my hat off to the newbies (last 10 years) that are licensed CPAs or EAs as the the licensing requirements are much stiffer than the "Old Days". Tax laws have changed with too many interactive parts that effect too many issues even with a "simple return". I don't know of anyone, even on this board (although I can bet one or two or three here would give it a grand effort and be super at it), that would be able to complete a return "by hand". Just look at when you make an entry and the program carries it to 1,2 or 3 other places/forms. Law makers know that software will solve those interactive calculations.

Don't get me wrong, I would not even try nor would I be able to complete a return by hand any more. I'm just too spoiled to even think of trying.

Not sure if I agree with licensing requirements being stiffer than the old days. I have an associate currently studying for the CPA exam. I tell her she has it made as we were not allowed to use calculators on the exam. Calculating fully diluted earnings per share by long division almost did me in.

That being said, glad to see many "old timers" still practicing. We need to lend that experience to the new practitioners so they do not make the same mistakes we made.

[Lion]

And the old EA exam, four exams over two days in a far-away town offered only once/year with nothing allowed to carry in. IRS provided blank paper and pencils which you returned before you left the room. Then you waited months for results. If you didn't pass all four parts, study again next year!

[BOB W]

Definitely changing business plans this year. Time to slow down, do less returns and charge more. As Bob mentioned a few posts back. Good game plan !!

As long as your were giving quality service, upgrading fees should be no problem...BUT BUT BUT.... It has to be slow over several years.. If you charged $150 move up to $165. $200 to $225. and so on... And always charge for extra work and build that into your new fee. $225 to $275 or whatever it was worth. Your $200, in three years, should end up at $300.

[Twin Turbo Z]

As long as your were giving quality service, upgrading fees should be no problem...BUT BUT BUT.... It has to be slow over several years.. If you charged $150 move up to $165. $200 to $225. and so on... And always charge for extra work and build that into your new fee. $225 to $275 or whatever it was worth. Your $200, in three years, should end up at $300.

Dont want to give any of our 40+ year clients a coronary !! Though Im about to have one !! Been a stressful two years. I imagine for everyone though.

[Rapid Robert]

What software and how many tax returns would a tax preparer need to prepare to be able to charge that low of a fee and cover the cost of their tax software (not including paper, ink, etc.)?

Paper & ink? Ha ha. This is the roaring 2020s, not the 1920s.

I don't think anyone actually answered your question yet. An unscrupulous paid preparer could use free online software like Credit Karma to prepare returns on behalf of naive or foolish clients. If it takes 30 minutes for a simple return, that's $30/hour net, not a bad rate, especially if they are not reporting their own income for tax purposes. While I think the IRS does track the computer hardware ID and network address from which returns originate, that could be defeated by using the client's own computer/smartphone.

You also don't mention whether or not the new preparer provides other services. For example, a financial planner might offer steeply discounted tax prep for clients who put their assets under management.

[ATSMAN]

For example, a financial planner might offer steeply discounted tax prep for clients who put their assets under management.

This appears to be a growing trend in my area. Last year I lost one client and this year two. The same financial planner who manages their investments is offering free tax prep through an outfit controlled by him. So his sales pitch is if you invest with him you get free tax prep.

[Anarchrist]

So his sales pitch is if you invest with him you get free tax prep.

If you pay his $15,000 fee, you get free tax prep.