Help Me Again with Potential Pitfalls

[erchess]

Got a call on Saturday from a potential client who had left the Block office because they wanted to charge him over $300 and he was "not even looking for one of those fast refunds." I drew out of him the following information. He made about $4K working at two jobs for which he was given forms W-2. He is married with one child and one on the way and his wife does not work. He wants me to do an injured spouse allocation because his wife owes on student loans. Last year the refund was all taken to pay those loans and the people who did it told him that the debt was completely paid but he doesn't trust that because they told him before the return was done that the debt did not exist.

He asked me to quote a fee and I said that depending on what turned up when I was actually there my fee would range from $85 to 120. He indicated that he will discuss with his wife whether they can pay that and when they might be able to do so.

So what am I missing?

Now I know I need a straight story on how his family lived on so little money, but let's face it they could grow most of their own food and/or have public or private assistance or savings from more pecunious years. I also know that I need to grill him on every other possible source of income..

He didn't tell me that his wife's debt predates the marriage and of course if it does not the allocation he seeks will be ignored I also know that it could be ignored anyway and I will document that I told them both that. I also need to make sure he knows that injured spouse will not protect his Stimulus Money.

Is my fee high or low? Would I have been better off pointing him to the AARP Center? So far the only person I have sent there was a woman on disability only who wanted a return done so that she could get Stimulus Money but indicated that she could not pay $25 for the return.

[Lion]

Low

Too low. What does he have that would cost $300 at Block w/o RAL fees? Rentals? If they don't want to pay their student loans, are you sure they want to pay you? Tell him about IRS Free File.

[geekgirldany]

That is what I would charge if the information is true. Sounds a little funny. I would say from $100 to $150. Injured spouse add another $50 to that. Block might have prepared the injured spouse info and that made the charge go up. I've got a customer in the same situation with the student loans. Says wife isn't paying the required amount but it hasn't went into default. Still wants to do a MFS return thinking this will protect the refund. I thought it would but now I am wondering.

I'd charge more if dealing with injured spouse... I would also file an extension for him

[David1980]

It could be some computer generated forms were adding up to a high total at block. I know they charge what I feel is way too much for adding things like additional child tax credit and EIC to a return. Even though as far as entering the return it makes absolutely no difference since the program does the calcs and generates the forms. Oh well, there way of getting a piece of those big EIC refunds.

But I could see him having basic things like a code D on the W-2 causing savers credit which is another $50 or whatever at block and just a few things causing it to be $300.

[Jesse]

That price from HRB doesn't surprise me, as David pointed out the EIC is probably causing the greatest portion of the charge and my guess is the Injured Spouse may be pricey. If the fee is deducted out of the refund I believe there is a charge for that as well.

IF they have the simple return as they told you I probably would quote $85 OR more depending on circumstances.

I had a couple stop that has gone w/ HRB for years but they claim the fee went from $200 to $300 with no changes according to them. Basic 1040, Sched A, and 2106 expenses. It's the 2106 that concerned me - did they bring in a shoe box of receipts that took hours to add up? I told them to come back after the 15th and I would review w/ them as I just don't have the time now to review a return that doesn't need to be finalized but is a new prospect for 2008.

[Burke]

Every client who has come in this year from HRB (2006) paid in the neighborhood of $300 to them for routine returns, MFJ, itemized deductions, maybe a small Sche C. And I have amended every one of them for one reason or another. One simply left off their dependent daughter (who was on the HRB 2005 return). It tells you how much people even look at their tax returns. The client did not even notice.