My fair compensation

[DaveO]

Our policy is a mix

of what everyone has said. A current client will get their copies at no charge. A handfull of clients ask over and over for the same copies. A P&S factor is added to their bills, but the returns are provided at no "extra charge".

Current client files are purged of returns over 10 years old. Inactive clients have their files pulled after two years and disposed of after five years. An inactive client requesting a return that has been pulled and placed into storage is informed that there will be a charge and given the option

[Jiggers]

Fees for copies

If a client wants a copy of a return that I have here in the office I provide it free of charge as a goodwill gesture and to avoid the nasty looks and comments you get when you try to charge even a small fee. The clients expect it for free.

Harvey Lucas

When I visit this client's business, the one that wants the free extra tax return copy, and I buy something that costs $250.00, and just before I leave I say I need this additional part that costs $4.95, I guarantee that I will have to pay that client $4.95.

When I eat at this client's restaurant, the one that wants the free extra tax return copy, and my family has a very nice meal that runs about $85.00, and just to top off the evening I ask for another beer, I guarantee that I will have to pay for that extra beer.

[Harvey Lucas]

Have never thrown one away

I have been doing tax returns since 1980 and have never thrown away a tax return that I have prepared.

I keep the old ones in "deep storage"

I keep the 5 or 6 years back in my office, all the older ones are in "deep storage"

If a client wants a copy of a return that I have here in the office I provide it free of charge as a goodwill gesture and to avoid the nasty looks and comments you get when you try to charge even a small fee. The clients expect it for free.

If the return is in "deep storage", I inform the client that it is in deep storage and there is a $50 or $100 fee to find and retrieve it.

Most often they will say, "oh, that is OK, I can do without it"

If it is really important they will gladly pay the fee because there is basically no other way to replace or find these old tax returns unless they can get it from me.

Harvey Lucas

[TaxBird]

Record Retention

In general I will give the client another copy (of whatever) upon request. With most of my clients this is few & far between.

However, I do have one client who pushes the boundary of 'reasonable requests". I have provided guidance over the years on record retention and even offered to set a filing system up for him. Apparently he can't be bothered, especially when I am so much quicker. So I charge him reasoning if he can't be bothered then it should be worth something to him that someone else can. He complained once and I explained it to him. The requests have diminished somewhat since then, but hasn't stopped entirely. I still charge.

[joanmcq]

I just tried getting some old tax returns from the IRS recently (84-99); they only have them going back 6 years. After that, only records of account.

[Jiggers]

Not to pay for services

Everyone has his/her own policies. I feel that I charge a fair price for preparing my clients' tax returns, and therefore any additional work I perform for them has value. They don't mind paying as long as they are getting something for their money. After all, if you went to the store amd purchased $200 worth of food, then later came back for a nickle piece of candy, wouldn't you expect to not pay for it?

Sounds like some of the kids that shoplifted at my dad's store years ago. Mother shopped there, kids would sneak out a candy bar.

My fees are based on my service at that time. If I perform additional services I charge for those additional services, including making an extra copy of the return. I don't build extra stuff into my fee.

[dsi]

Everyone has his/her own policies. I feel that I charge a fair price for preparing my clients' tax returns, and therefore any additional work I perform for them has value. They don't mind paying as long as they are getting something for their money. After all, if you went to the store amd purchased $200 worth of food, then later came back for a nickle piece of candy, wouldn't you expect to not pay for it?

[Joe Btfsplk]

Two hour search

If this came up frequently, then a charge would probably be necessary, but if it comes up only once every five or ten years, I would just spend the time and pretend that it only took a few minutes to find it in my up-to-date filing system.

If I only did one or two tax returns every five or ten years, I probably would not bother charging for them or would charge some nominal ($25-$50) fee just to make the person feel like he was not bumming, Sometimes I've done free returns or undercharged people who were good friends, co-workers or neighbors that I knew before going into the tax-preparation business. If I had too many such returns, I would have to charge more.

[DonPriebe]

Inflation ...

There are alternatives:
1) Acquire a copy from the Internal Revenue Service. I don't know how long this would take, but there is a nominal fee, I think $5 per return.

Actually, it's $39 per return. http://www.irs.gov/taxtopics/tc156.html

[WhiteOleander]

I have been charging $45 per return. I state this on my engagement letter, and on the client's copy of THEIR return. To date I have not had any complaints. Furthermore, on most of those who request a copy of their returns, I email it to them...still cost $45.

Do you have some sort of encryption program for privacy?

[Holland]

I have a former client who wants a copy of his very old tax return. I will have to go to our storage room to really search for his file. I have no idea how much time it's going to take to find it, assuming that i can find it eventually. I would like to know whether there is a rule to limit how much we can charge our clients for this kind of works? What would you do if you need to spend like 2 hours to find an old file because your former client needs a copy of his old tax return?

I have every return and file for the since 1973 as a *.pdf file. When clients ask me for an old file, it takes, at most, a few seconds to locate it. I then directly fax or email it to the client, or print and mail or hand it to them. I do not charge for this service. I regard it as part of my professional service.

[dsi]

I have been charging $45 per return. I state this on my engagement letter, and on the client's copy of THEIR return. To date I have not had any complaints. Furthermore, on most of those who request a copy of their returns, I email it to them...still cost $45.

[Jiggers]

Copy of return

I don't have that problem anymore; I only keep files that go back 5 years.
I tell my clients to be sure to save their files, because I only keep files for 5 years.

I stamp the following on all returns, in red ink: "PLEASE RETAIN. THIS IS YOUR PERMANENT RECORD. IT IS OUR POLICY TO RETAIN FILES FOR NO LONGER THAN FIVE (5) YEARS."

I also charge 75¢ per page, including the cover letter and all attachments, for an extra copy of any tax return. I give them one copy as I am required to do. All extra copies are charged for. Most are too lazy to look for their copy. When I quote the 75¢ per page, they suddenly remember where their copy is.

[Gene V]

I don't have that problem anymore; I only keep files that go back 5 years.
I tell my clients to be sure to save their files, because I only keep files for 5 years.

[Corduroy Frog]

No limit

There is no limit, neither in practice nor statutory. Practically, however, I don't think you can charge enough for this kind of trouble without making it look like a rip-off for simply making copies.

There are alternatives:
1) Acquire a copy from the Internal Revenue Service. I don't know how long this would take, but there is a nominal fee, I think $5 per return.
2) Resurrect a copy from your software package if it is still installed on your computer.

I keep copies for 10 years, and advise my clients to keep theirs for seven years. I've never had a request for a return older than that.

Maybe a better question would be "Why do they need this very old return??"