Fee Chart

[OHIOTAXMAN]

Does anyone have a schedule of suggested fees that they would be willing to share? My main competition is H&R Block and Jackson Hewitt and I would like to set my fees in alignment with theirs.

[taxmandan]

Fee schedule

Does anyone have a schedule of suggested fees that they would be willing to share? My main competition is H&R Block and Jackson Hewitt and I would like to set my fees in alignment with theirs.

The fees are going to be very dependent on the local market, even jh & hrb vary across the country. You will need to check out the offices in your trade area, Have your spouse, mother, or some other non-tax person call anonymously and ask the offices for prices on a return.

I don't cater to the same clients that jh & hrb do so my fees wouldn't be of much help to you.

[Roberts]

There are plenty of perparers who post their prices on the internet. Just do a google search and realize you probably won't get someone in your area but maybe in a similar sized area in a different part of the country.

maybe a search like ""enrolled agent" fee schedule" would give you what you are looking for - or exchange out CPA is that's more relevant. H&R Block and JW will NOT advertise their rates and I take it as a hint that I shouldn't either. I just tell people my rates if they ask and tell them that I think they'll find I'm the same or a little cheaper than other professionals with my experience and credentials.

[KBTS]

HRB Rates

Last year, I got a copy of the HRB rates charged in my town. As was mentioned, rates vary depending on the location of the office. The local office usually has to discount the rates that are charged by their software in order to be in line with other preparers in the area. However, another office located only about 30 miles away charges "full price" on every return and seemingly no one even bats an eye at the cost. That location is in a more affluent area near a much larger town. For example, a return that they might charge $79 for here might be more like $149 in the other office. JH just opened an office locally, so I will be interested in seeing how their rates compare.

[taxmandan]

Fees

The local office usually has to discount the rates that are charged by their software in order to be in line with other preparers in the area.

A technique I've used for years. Everyone likes a discount, do you really think the auto dealer is giving you 0% interest or a $2,500 rebate? But people will go buy because they convince themselves that they got a good deal.

Prices in my software are set high and almost every client bill will show a discount to the price I want for the return. Clients are reluctant to complain about the fee when they see they already got a discount, even if they pay a higher fee this year than last year.

[Unregistered]

Check out the 2005 1040 Instructions

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Check out the 2005 1040 Instructions pg 79. The IRS has "estimated" the time and cost associated with preparing tax returns for various situations.

[Black Bart]

Well, you gave me a reply so,

Does anyone have a schedule of suggested fees that they would be willing to share? My main competition is H&R Block and Jackson Hewitt and I would like to set my fees in alignment with theirs.

for what it's worth, here's mine for you. I'm "down south" (Arkansas) in "minimum wage" territory and so (per others' variances warnings) my rates are gonna be a lot cheaper than yours.

Anyhow here they are (last year's prices-I'm still mullin' over those raises). Thanx to all for the suggestions:

Basic "short form" (1040A and any credits generated from it (EIC/CTC/other) plus state, standard deduction on both - paper filing--$ 45. Additional clerical time (W-2/1099 details, mailing-matching 8453s, etc.) if e-filed - $75. No extra charge for multiple W-2's or kids (1 or 10-all same).

Basic "long form" (1040 and any credits generated from it, Schedule A, plus state and state itemized deductions -- $65 paper / $95 e-file

Charges all same for single, married, HH.

All returns with "schedules" are paper filed.

1040, C-EZ, state - standard deduction - $95 Itemized deductions - $20 extra

1040-small C-state-standard --- $125-$150 ($100 more if big depr sched0.

1040-E-state-standard --- $95 - $150 (depending on how big depreciation schedule is. No item charge for each piece of equipment, but a lump-sum charge if it's a third of a page or more/ depends on time required to complete it.

1040, F, state - $300 to $500.

1040, 2-3 Cs and/or 2-3 Es, state - standard - $125 to $500 - depending on: how much time, how much trouble, attitude (if I like him/her or not), if I want him back next time, if I'm "greasing" them (coffeeshop blow-hard, poor boy, preacher, relative, it's a nice day, Pluto is in alignment with Mars, etc.).

Out-of-state returns - $ 40 in addition to regular fed and Ark. returns price.

Royal pains in the neck - $500 to $1,000 if I'm willing to do them at all (or if I need the money--that's always a factor).

We were the first and only tax business in town for several years and when the franchise guys showed up their prices were quite a bit higher than ours. We were slaying them for a while and they undercut us by $1 to no avail...until....the era of the "Rapid Refund" which slew the dinosaur (me)---cut us in half (some here are desperate--will pay almost {i}anything{/i] to "get money now"). They established a foothold with that crowd and I've noticed, once you lose somebody, the odds of him/her ever coming back are very low. Now they charge whatever they want for the basic 1040A and state and they've given up trying to compete with our 25% lower prices. They just charge their price now and that's that--take it or leave it. Many take it.

I guess maybe if you double or triple all the above rates, then they might be appropriate for you in Ohio. Good luck.

[OHIOTAXMAN]

Black Bart You Are Great

Thanks a lot. That is what I was looking for.

Just curious.... Why don't you E-File schedules?

Also..... Why don't you offer refund loans? It looks as though you would kill the National chains.

Times are a changing ..... I refused to do loans for years .... lost a lot of clients to Block. Started offering them 4 years ago, did over 300 last year. I add $35 to the loan fee for my time.

My Fee Schedule is.....

1040ez and State .... $65
1040A and State .... $85
1040A,EIC and State ... $105
1040 , A and State ... $105
Schedule C, E, F ..... $50 & up each

Electronic Filing .... $20

Out of State Returns ..... $50

I think these prices are way below HRB and JH. Probably need to adjust.

[Black Bart]

Ohio

.

Just curious.... Why don't you E-File schedules?

Also..... Why don't you offer refund loans? It looks as though you would kill the National chains.

Times are a changing ..... I refused to do loans for years .... lost a lot of clients to Block. Started offering them 4 years ago, did over 300 last year. I add $35 to the loan fee for my time.

Why don't you e-file schedules?

Several reasons: (1) Old dogs hate new tricks--I'm comfy in my ruts. (2) There's no incentive. Most schedules are "tax-due" returns and t/p's don't care how IRS gets them, be it mail, e-file, or pony express. I read a survey that said the "complex tax-due return" e-file rate was 20% and Peter Piper picked a peck of pickled peppers...(strike that)...I meant to say that preppers preferred paper and people professed no preference. IRS won't bill 'til 4-15, but that's moot--you can just mail it the last day ( a few "doubting Thomas/Thelma"s "don't trust" IRS billings). (3) Data entry takes longer. The problem's more pronounced on 1040As than schedule returns, but a W-2 is a good example--100% of both employer's and employee's info must be entered. With paper I enter only employee data, skip FICA/M-C, xerox W-2s just in case and I'm done. (4) Although 8453s are a problem to keep up with, I don't like 8879s either because t/p's keep telling me to "Put down whatever number you want; I don't care" and I want them to be more "involved" in the process. Filing paper, they sign the 1040, they mail it, I'm through with it. Anything goes wrong, they get a letter, bring it to me--I write IRS. Nice & neat. E-filing I've gotta keep "tracking" the dang thing: was it accepted, was it not, call the software company--why hasn't it been processed, why hasn't it...blah, blah, blah. If the "reject" is at IRS; the reps don't know, don't care, don't guarantee that refund time chart, don't find any record of receiving it, or "will call you back." Anyway it's all out of my hands & I just hate it.

As a practical matter, this whole discussion is probably moot. I expect IRS fairly soon to mandate that practitioners e-file all returns...and... that will be that.

Gotta go--it's 5 A.M. and I'm 'bout to pass out. Will address the RAL issue later (oh my Lord, I hate to get into that again). There'll be cross-burnin's on cyber-yards.