Fees, what to do??!!??

[WhiteOleander]

What I say about fees:

A guy takes his car to a mechanic because it is not running properly.

The mechanic looks under the hood a discovers the problem. He goes and gets a screw driver, turns one screw, and the car begins to run perfectly.

The owner is thrilled and asks how much he owes. The mechanic says $50.00. The owner shouts, $50.00???? For turning one screw????

The mechanic says no, $5.00 for turning the screw. $45.00 for knowing which screw to turn.

So, if they don't want to pay me to know which screw to turn, it's fine with me.

[taxmandan]

My complaint is his complaining about my fees in public, even though I have never done his return, nor presented him with a bill.

Regarding this matter, unfortunately your response has to be constrained and professional. I respond to such comments that "Everyone's tax situation is different and fees vary accordingly." and leave it at that. Not very satisfying I know. I never bad mouth the cheap preparer or slam the taxpayer, that is unprofessional.

As to responding to his statement to you directly, I always ask why he isn't going back to the previous preparer, because that's a good deal. Always, always, they relate some complaint about service and THAT is my opportunity to tell them how I can do better than the low-price guy. Listen to what he says and you may realize what is really bugging him, it isn't the $100 he paid, but something else and that is OPPORTUNITY.

[FEDUKE404]

Some more on that tax "professional"

They set up shop, use turbo tax, are not licensed (EA or CPA), and turnout poor returns.

I tried explaining my fee, but that fell on deaf ears.

I didn't have time to look for errors, but I have picked up clients from this other preparer and have always found errors. Some large, requiring an amended return, some small and not worth the effort.

If he was using TTax, you can pretty well bet he was not using the Professional Version (costs much more) and, FWIW, was also violating the software licensing agreement with Intuit by preparing for-fee returns.

Of course, I've seen returns done by lawyers/CPAs who use "regular" TT and then white-out the "Self-Prepared" entry in the area for the firm name. Of course, no e-filing and probably no preparer signature for your bargain-hunter client.

As others have noted, it does seem interesting why this client is giving up such a comfortable situation. Maybe a few window envelopes from the IRS??

Don't worry about the logic at play here: "It's difficult to have a battle of wits with an unarmed person."

Good luck!!!!!!!!!!!!

FE

[Gretel]

Regarding this matter, unfortunately your response has to be constrained and professional. I respond to such comments that "Everyone's tax situation is different and fees vary accordingly." and leave it at that. Not very satisfying I know. I never bad mouth the cheap preparer or slam the taxpayer, that is unprofessional.

Yes, I learned this too. First of all the taxpayers story and reality might be quite a bit apart and then, some preparers just do taxes as a hobby and of course don't have much CPE, if at all. It doesn't speak for oneself to complain as it doesn't speak for a client who complaines about someone else.

What I also learned is that fees not only depend on forms but also greatly on how organized a client is and how much time it takes to deal with him.

As to responding to his statement to you directly, I always ask why he isn't going back to the previous preparer, because that's a good deal. Always, always, they relate some complaint about service and THAT is my opportunity to tell them how I can do better than the low-price guy. Listen to what he says and you may realize what is really bugging him, it isn't the $100 he paid, but something else and that is OPPORTUNITY.

This is just added to lengthen my message.

[erchess]

Five years ago there was

a preparer in my county who would prepare any return for $65. She and her husband own or at least used to own several shopping centers including the one where she had an office and two people working for her. I have the impression that she was entertaining herself and generating a loss that helped their tax situation. However, It once fell to me to electronically file a return she had done with itemized deductions, rental house and self employment including sale of business property and I could find no errors. Per my training I did truly try.

[ChEAr$]

The ideal new client

After all these years, I just discovered who he is. For the secret send 25$ to:

well not really.

He is a senior citizen, retired, nothing fancy like schedules c, e or f, who has been using
one of the large chain preparers who charge an arm and a leg and is referred to me. After
he learns my fee is about half, and of course that I'm roughly of his generations AND
values, he sends me more of his friends in a like situation.

To cultivate this market, and it's a large market, too, I'm having new business cards
printed up, but this time with LARGER TYPE!

[Gretel]

This is just added to lengthen my message.

I messed up this post since now my message is included in the quote. Sorry.