Reviewing Returns

[geekgirldany]

Do you guys charge the same for reviewing returns as preparing them?

I have a previous customer wanting me to review a tax return that a relative prepared. Relative is an accountant. He just wants me to make sure they are being prepared correctly.

I think I should charge the same because I know he isn't coming back and I will be entering it into my program and double checking to make sure everything is correct.

Its been awhile since I was asked to do a review.

[fliszt]

I charge

the same as if it were an original return prepartation. Have to do the same work.

[JohnH]

The same amount of work as setting up a new client, but without the prospect of future business? I'd definitely charge as much as a normal tax prep, maybe a little more. We're in the tax prep business, not in the business of grading papers.

[erchess]

I'm different

but then all the regulars here know that lol.

If I spend four hours on a tax return, that's a lot. Only a few of my clients take that long. Reviewing such a return does not take me long in most cases. I don't really look for such things as incorrect calculation of a stock basis because I can usually find something that is simply wrong on its face. I have found returns prepared for a fee that used the wrong filing status. I have seen such returns where the supporting schedule listed something like "Dr Smith DVM $500" among the medical expenses or where a trucker with a Sch C listed the expense of donating to law enforcement related charities that gave him stickers for his truck so he could speed with impunity. There are at least two preparers in the county who tell me on the phone that they always get a tax savings from every expense a client writes down and brings in but they don't ask for any further information. I have seen where a Pension Rollover code G or even mortgage interest paid by the taxpayer had been taxed. I have seen nontaxable interest and dividends taxed. I just don't run into people who are concerned about the correct transfers of numbers from what they bring in or tell the preparer to the return. People that come to me generally are concerned that a given sum was not taxed when it should have been or was taxed when it should not have been or a deduction of so much for such and such that the preparer made or disallowed and they think he was wrong. These sorts of checks I will do for free because they generate business and referrals. In the rare case that they offer me a return that was competently done by someone who treated them well they still know someone who is looking for a tax pro and will mention my name. If someone really wanted all the work of preparing a return I suppose that I would charge my normal preparation fee.

[geekgirldany]

Thank you guys for posting.

I really can't do it as a freebie. I could probably pick out if something was done incorrectly by looking at it. But he is wanting to know if I come up with the same numbers. So that means doing a complete return. In the past I probably would have done it as a freebie but I just can't anymore. He has referred a couple of people to me but I feel like I need to charge for my time.

[Bees Knees]

My wife use to work as a bookkeeper and parts runner for an auto repair shop. They had a set hourly rate for working on cars. The rate was double if the customer wanted to watch, and triple if the customer tried to fix the car first.

[New York Enrolled Agent]

Dany writes: "I have a previous customer wanting me to review a tax return that a relative prepared."

Maybe it's me, but why would you want to do this at all? PREVIOUS customer??? I have a rule that all my clients know - "once you're gone, you're gone FOREVER". Clearly, preparers that have storefront walk-ins need to have different rules but I would not do the review.

[erchess]

Dany writes: "I have a previous customer wanting me to review a tax return that a relative prepared."

Maybe it's me, but why would you want to do this at all? PREVIOUS customer??? I have a rule that all my clients know - "once you're gone, you're gone FOREVER". Clearly, preparers that have storefront walk-ins need to have different rules but I would not do the review.

It seems to me that this is a good opportunity for her to get a customer back for good I had not noticed that this was a previous customer. I would eyeball the return for free and then offer to re-key it for my usual fee. I would explain that I am too busy to work without getting paid.

NYEA what does your rule accomplish for you? Does it really prevent people from trying another service for a year? Or is a returning client really worth less to you than a new one?

[Uncle Sam]

Reviewing Returns

As far as I'm concerned - once clients leave for whatever reason(s) - they're gone.

In all my years in the tax preparation service - I've only had ONE client leave - tell me they're having a relative do their return - and came back after 2 years.

It was a business client where I also did the personal returns.

It turned out - that when they left me - they were collecting an installment note on the business sale.

After the two years - client came back to me. They went to H & R Block both years, and the preparer only picked up the interest income on the note and nothing for the capital gain portion of the installment note. So both years' returns had to be amended. Then they left again and never came back.

If a client returns - what's to stop them from going to another preparer after they leave my office - and ask that person to "review" my tax return? Why should I trust them again after they leave? I'm only inviting trouble.

[geekgirldany]

My wife use to work as a bookkeeper and parts runner for an auto repair shop. They had a set hourly rate for working on cars. The rate was double if the customer wanted to watch, and triple if the customer tried to fix the car first.

That's pretty good. I actually do charge more for people to sit and wait on their return. When I tell them this they usually leave it unless they came from far off.


Its a family affair so to speak. The customer didn't leave on bad terms. I talked to him yesterday evening and told him I would charge the same as preparing the return because I would have to actually prepare it. He said he would call back which probably means he won't. The fellow I worked for before I opened my biz would not review returns either.

I appreciate everyones input on this. I've come to the conclusion that I will gladly review the return but I am going to charge for it. They can go to Block if they want a free review.

[erchess]

At least in My area

Block charges around $40 to review a return. I don't know this but I would imagine that if Block offers to amend and the client agrees, the price of the review is credited toward the price of the amendment. I would also imagine that Block has software that makes reviewing a return easier. For example there could be a picture of the tax form, sch, worksheet, etc and all the preparer does is type in what's there. Perhaps there is an election in some cases to dispense with keying in an information document and for example enter wages on line seven of F 1040 and let it go at that. At one time Block had software similar to what I am describing that was used for clients who wanted to electronically file returns done by someone else.

I certainly understand those of you who will not do more by way of checking a return than to eyeball it and perhaps answer a question like "My preparer depreciated my desk over seven years. Was there a better option?" and even then only if they seem to be a sincere potential client. I can certainly understand anyone who charges the full return price to "review" a return by re keying it, although I do not understand why someone would refuse to do that unless there is some reason why they will not take on this person as a client.

I am intrigued by the idea that once a client is gone he can't come back. I will have to think about this one.

[JohnH]

I have software that allows me to key the info directly onto a picture of the form.
It's called ATX - maybe some of you have heard of it....

I've had a few situations over the years where a client left and then returned. Sometimes it worked out, sometimes it didn't. When they returned, they always came in paying the latest rates and as far as I was concerned they were no different than any other new client. I can't think of a reason why I'd have a policy about something like this - every situation stands on its own. (I try not to let my emotions get in the way of my business judgement).

[erchess]

John

I have software that allows me to key the info directly onto a picture of the form.
It's called ATX - maybe some of you have heard of it....

I've had a few situations over the years where a client left and then returned. Sometimes it worked out, sometimes it didn't. When they returned, they always came in paying the latest rates and as far as I was concerned they were no different than any other new client. I can't think of a reason why I'd have a policy about something like this - every situation stands on its own. (I try not to let my emotions get in the way of my business judgement).

Yes there are other packages with Forms Entry but at least in the ones I am familiar with (and that definitely does not include ATX) for most lines there is something you are strongly encouraged or even flatly required to click to go somewhere else and sometimes a couple of layers of this in order to ultimately enter much more information than would appear on a mailed in return. The program I am speaking of I don't think had any way to put in information that would not be mailed to the IRS on a paper return and it was used only for returns prepared outside the office. At that time my employer believed that the IRS required them to take returns prepared by others and electronically file them for much less than the company would have charged to prepare and electronically file the same return.

I tend to agree with you that every case is different. I personally have lost two clients. One was very pleased or so he said with my work and we spent some time planning for the next return because he had begun in the new year to do contract hauling with his own dump truck. Then as he was headed back inside after helping me carry my gear to my truck I yelled "God Bless You". He didn't respond or look back but I think he was offended. I would take him back if he stated that he could put up with that goodbye from me which I use frequently. I don't think it is going to happen. The other client moved to Alaska to be near their children, one of whom is in this business. If they want to come back to me I will take them n questions asked beyond my wanting a believable story about why they are no longer using their daughter. For exaple if she died or left the practice or they moved back to NC I would be happy to take them back.

[oceanlovin'ea]

This year I had a new client that came to me to review their return. It was a self prepared and they owed money.
I asked them questions to make sure he had put everything on the return that could be used. I entered the return in my program and came up with the same results. BUT then I showed them how to adjust their withholding to cover the tax shortage. We talked about contributing to 401K and cafeteria plans for their insurance deductions to be pre tax.
I efiled the return and charged them my normal fee for a 1040A return.

When they were leaving, the man said to his wife "Well, next year when I do our tax return, you will owe me $45 for preparing our taxes." I guess he said that because he had to pay for me doing the return that turned out the same as he had. His wife looked at me and said "We'll be back next year."

As long as I do more than just look at their figures, I will charge for the tax return.

Linda F

[erchess]

Linda

Now that couple I think I would not do again. I also don't understand why your fee is so low. I charged $55 for a 1040A this season and no one I did needed only that. They needed states and usually another schedule, all at additional charges. And I am in a depressed wage area.