Leaderboard

Assuming I were interested, I'd tell them the highest prices, including the warning that there will be annual increases, and let them take it or leave it. Who cares what H&R Block charges? They are already signaling that they want to play you off against the competition and beat you down on price. Maybe you should tell them that buying tax preparation services is like buying oats. For a fair price you can provide good quality oats. But if price is their only consideration, then for slightly less money they can risk getting oats that have already been through the horse. Most (not all, but most) people who own rental property are a royal pain. Their whole business model is built on getting everything done as cheaply as possible (plumbing, electrical, cleaning, general repairs - you name it) and that includes tax preparation. They expect to collect the highest rent possible on their property and pay the least amount possible to those who are their support & supply system. And they aren't bashful about constantly needling you on price or taking advantage of your time - they frequently take great pride in playing this little game. These attitudes are generally passed on to them by other landlords or the guy who sponsored the seminar that got them interested in rental property in the first place. Too much of an entitlement mentality to suit me.

I would've told them to call the state. Might've given them the number if it was at my fingertips. Taking them back would depend on how contrite they were on that second call (after showing attitude in the first call) and how much I did or did not like having them as clients in the past. IF I did take them back, I'd inform them that my prices increased in 2015 and will again in 2016, so a return comparable to their 2014 return is now $220 (name your price, but definitely over $200). With the due diligence for EIC, I'd charge a whole lot more than $200 for an EIC return that includes a Schedule C. In fact, I probably wouldn't let an EIC client return after leaving me and showing attitude!

Consider going the other way --- no discount for PDF --- higher price for paper copy (realistic too - paper, toner, drum for printer, attachments (paper clips, etc.) along with time collating, checking all printed, etc.) A nice USB 2mb drive that looks like a credit card can be had for about $2.00 in small quantities (less than 50) - which is probably well below the PRINTING cost without including the time spent. Majority of mine are PDF (encrypted - check out www.PDFill.com for a good/easy encrypt tool). After this year I should be all USB drives (as soon as I run out of in-house supply of CD-s and covers, etc.). Since I do 99% computer with a few drop-offs this works very well for me. Also the clients appreciate NOT having the paper to file and have expressed that they (clients) are going away from CD's too; so the USB (credit card style) drives work great. By the way, yes you can get the USB drives as small as a thumb finger nail size - BUT - easy for client to lose -- whereas the credit card size is easier to keep. Enjoy the tax season!

They were very nice in the returned voice mail and thanked me. They were never a problem to work with except they took a long while to return calls and usually finished it up just before the filing deadline even if they dropped off in Feb. Yes I do know my prices are too low and have been raising them slowly each year. Thats all I hear from my wife is that my pricing is to low for a CPA. Im betting if I take them back that upon reviewing the self filed returns for 2015 there will be amendments needed too.

In the 22 years I have been preparing taxes I have always had them drop off. I prepare it and then call them with questions to finalize the return. When we are both satisfied I print out the client copies and schedule a pick up. Any changes after this point come with an additional charge and I make it known. Not many problems doing it this way and I can prepare them at my leisure. I dont like the pressure of a face to face prepare plus I think it takes longer because they will keep asking questions, throwing off my train of thought and there is always additional info they need to provide so it would take me more time. In some cases I dont want them seeing how long it takes me to do a return. Now if I could only get them to take a .pdf copy of the return and avoid the printing. Return and scanned documents on one CD or emailed encrypted to them. I only have one client that uses the pdf. All want hard copies, even if I offered a discount for the .PDF.

I love this!

I tend to tell them the higher price (that it takes for me to be willing to work with them) and let them decide to stay or to go.

Yes, I've seen the same (only last 2 or 3 years), and of course always a hysterical call when they arrive.

I work in my flannel jammies and fuzzy slippers unless I have to see people. Still stay in comfie shoes or slippers or just socks, flip flops in summer, even when I have to put clothes on. But, I'm in the land of two-acre zoning with no commercial area, so people are seldom "just in the neighborhood." They know I have a mail slot in my front door. My office is the back corner of the house, so I just hide! I have run after a couple of clients that I did want to see when they slipped their envelopes through my door -- and was in those aforementioned flannel jammies with a sweatshirt and slippers. Don't do that often, but both times were long-time clients and females.

A little sambuca or anisette in the espresso does have a calming effect but only for the "children" 18 and over.

I like espresso and kittens.

Client brought in two IRS letters yesterday. This is the same couple as in my post of 11-16-16 ("Unpaid Taxes for 2015") who e-filed and mailed a check (10-15-16) for the balance due which IRS promptly cashed, then billed them two weeks later for the same money. I sent front/back of the check plus explanation to IRS; nothing heard back, so guess (hope) that part is done with. But, they always owe about $300 penalty/interest and prefer to wait until IRS sends a bill. It (they) arrived yesterday -- two CP501 letters, same dollar amount on each, for this married filing joint return - one for HIM and one for HER. Further, although each bill has only one taxpayer's name on it, the husband's social security number is on both and the wife's is nowhere. I've never seen this happen before and wonder if it's the same nut/section that handled the first deal or is the system going haywire? I replied/explained, but it was somewhat awkward 'cause there's no nice way to say "You're crazy."

Yes, I would have helped them and yes I would take them back only because I know clients are not perfect. Once they return I would explain that they need to respond to your questions in a timely manner as tardiness interrupts the workflow process and could increase their price. Also I would definitely listen to your wife, they usually know better, just from their intuitive perspective, and it serves us well to obey, if we know what is good for us. I learned the hard way.

I believe that nothing will ever be done to put tax preparers out of business or significantly reduce our work load or fees. Too many businesses/people make a living out of it (i.e. big CPA firms, big tax prep cos. individual practitioners and software developers. They may reduce the tax brackets/rates but I think thats about it.

If it were socially acceptable I would work totally clad in fine velvet. Why not, no one can see me on the top floor of a townhouse. Great way to be productive, alone and comfortable.

All my MFJ couples get two letters for everything now, one to tax payer and one to spouse. And, I get copied on both! IRS covering their butts?!

At one of the "Gear-Up" Seminars, the instructor was from California. He said he was finally getting to the "perfect" practice. He spent all tax season in Lake Tahoe at his condo, all returns were dropped off at his office in LA, and other employee's scanned in the info, and inputted the returns, then he reviewed them. He wanted 1,000 like this, and he charged a very large fee. To each his own. If you turn your tax practice into a commodity, then your clients will treat it that way as well. I was just at one of the spin-off's from "Gear-Up", Bob Jennings seminar, and he said to raise your fees 30% and clear out the chaff. That will get rid of the commodity returns, the ones that have revenue but are not helping you in the long run. If I meet with someone for half an hour, and I get $250 for that return, and I meet with someone else, for half an hour, and get $500 for that return, why am I meeting with the one for $250? My idea for 2017 is this, as I am doing all my tax season planning, you pay more to meet with me. If you want to drop off the return, the starting rate is $280. If you want to meet with me, the rate starts at $375. If you want to meet with the CPA exam qualified person on my staff, you can meet with them for $300. Or some combination of fees that make sense for what I have traditionally charged them in the past, and what rate I want to charge them in the future. In my new office? I can not see who comes into the office. They do not walk by my front door anymore. It cuts down on the "drop-in's" considerably. Rich

I really try to stay away from face time as much as possible. Those client who hack and wheeze with their colds and flu all the way through the appointment. Unattended children are given a free espresso and a kitten.

I guess it is up to us to decide how much of a friend, confidant, and advisor we decide to be with our clients. Knowing so many for so long makes it difficult to not listen as they consider you more than a preparer. During tax season I'll limit the other than tax stuff talk and will gladly call them back after the season ends to "catch up." But you know the ones that you just can't resist hanging out on the phone with because you happen to like them and they are nice people. Something I've been doing for a few years is I will record their birthdays on a calendar and make about 50 Happy Birthday calls. I don't sing, but they are really impressed you remembered them. These are the people I can consider more than a client and the few minutes I spend on the phone is enjoyable for them and makes me feel good that I did it. And the little old ladies that have been around forever, believe me, that makes their day, I did a good thing, maybe I'll get a room with a view in tax heaven.

One idea that's frequently floated as a simple solution is a national sales tax, but I don't worry about that one at all. As we know, millions of people pay no tax at all and simply file to get EIC refunds and all their withholding back. The only tax they pay now is about 8% state sales tax every time they buy something. If the feds pass a national sales tax of, say 15-25%, the states aren't simply going to go away - they'll still want their money too. Anyway, after a few months of every soul in the country paying a total 23-33% surcharge on each item they buy every day, year-round, there would be a deafening roar heard all the way from Podunk Junction to Washington, D.C. for repeal of this "simple" tax.