Tax preparation fee

[ATSMAN]

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

As my Dad used to say there is "no free lunch" BUT many people believe in fairy dust!

[Burke]

Most of us may have started traveling to client's homes (back in the day), our only expense was a pencil, calculator and a small copier. Back then client's received IRS packets with forms according to how they filed in the prior year. I used pencil to fill out the form and then photo coping made the final copy like black ink.

Oh, those were the simple days. I tried to group my clients on one day for everyone who lived in the same neighborhood. Kitchen tables were my "office." Keys were left under the mat for me. And I often got drinks and baked goods while I worked. You never much had to put one aside because something was missing. It was usually in the house somewhere. If they didn't get the forms in the mail, I could get them from the IRS office or Post Office for free. Time marches on........

[Burke]

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!

At least you didn't have to re-take the ones you DID pass....

[Burke]

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.

I lost one this year who bought a house in another state's retirement community and they offered free tax prep. He has an involved return, withdrew over $100K from retirement funds (non-COVID) to buy the house. So he has stock sales, sale of house, new home purchase, IRA withdrawals, no withholding (ever), no estimated taxes paid (ever) AND a part-year (out of state return for them). I wonder if they are going to do all that for free!

[Lion]

I lost one to a brokerage. The family had a FLLP with a CO brokerage who offered free tax prep to their clients with a certain amount under management. Even so, he stayed with me for years. I charged him a lot for a trust (managed by that same brokerage) and his individual return that had NY and CT and a lot of action in his investments and a high-earning W-2 job and a high-earning SMLLC, but I'd advise him and not just fill in numbers on forms. Finally he apologized profusely but told me he was going with the free prep. I looked up the preparer the brokerage used. He was a young guy who used to prepare the biz return for a CO sports team. Now he prepares returns for the clients of a CO brokerage. Oh well, as someone already said, you get what you pay for.

[BOB W]

Sorry to hear of your loss. Yes, loyalty only goes so far.. It always amazes me that high income clients act so cheaply at times. I have one several years ago but he came back the next year. Maybe yours will too. If he does come back treat him like he never left.

[Lion]

It was some years back. He's probably better with the brokerage, especially if they added to their preparers, because his whole family is there with their individual returns and the family's FLLP and their individual trusts and... He's a nice man, so I'd probably treat him well if he returned. But he's also filthy rich and been gone for years, so I don't think I'd give him any discounts!

[dmj4]

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!

This is exactly how I remember the EA exam, too. You could challenge the answers to the questions and with a good explanation sometimes other answers were allowed credit.

[ClanceyEA]

wow $5 to have a tax return prepared? No one could possibly provide that? I am guessing he doesnt quality for VITA or free to file programs... I am a new EA in California. When I get people asking how much I charge? I tell them I start at $250 unless its just a W-2 then maybe 200. And I would need to see everything they had in order to give them a fair quote.