Leaderboard

That is absolutely something to consider. It's definitely all relative. I did Google searches for median home values in Fairfield County, CT and Crossville, TN. The top hits show that the numbers are $535,600 there compared to $90,800 here. It's different here - I love my low cost of living town, and I don't struggle. I do love to work, and I do like to get the business I want. My house cost $342,000 and it's paid for. I'm doing ok.

Stop it. Just spending an hour with you would be worth $225. If he is too cheap to pay what you are worth, let him go. You offer more than just filling in the amounts, you offer your expertise, your time in the off season, a reliable professional to give good advice all year and planning for future years. If this guy can't see that, it is his loss. Tom Newark, CA

If no one complains that your prices are too high, then your prices are too low! I have only so many hours in the year. I can fill them with $500 returns or with $225 returns. I choose to NOT be the cheapest. I choose the higher priced returns. Then I can spend an hour with my husband or granddaughter. I think it was someone on this board who said: If he was going to work for free, he'd take time off instead. (I have plenty of clients at a LOT less than $500. Not that they should be less, but we all know how hard it is to increase prices enough to keep pace with their more complex financial lives as well as inflation and even my increasing worth. But, I try not to take on a NEW client under $500. Remember I'm in pricey Fairfield County, CT.)

Just some food for thought. Maybe we are bidding some of these prospects too low. I like to set my prices high enough that the prospects have an inkling that I value my services. If it is too high for that prospect, so be it. I can tell you that I have heard a word on the street that my fees are high. OK - but I can tell you straight up - and I have a boat load of clients to confirm it - that there must be value in what I provide at those "high" fees. I use to strive to not be the lowest price in town. Now I strive to be one of the most respectable and respected firms in town.

This is why I love you, Tom. Yes, I'm as good or better than whomever told him $185. But he couldn't tell that from a ten-minute conversation. None of them can. I didn't even get a chance to hug him. They don't know what they don't know. Maybe he went to Tammy's X-Treme Tax Returns and she put 60,000 miles on Form 2106 or totally missed a mutual fund sale, and he'll get audited, and I'll see him again... Thanks, I'm talking myself into not kicking myself, Tom.

Passing the USTCP is impressive.

Congress should require that every tax return that is efiled has a marker back to the original box S/N, and a requirement that the S/N is registered somehow. So that the "shake the box" bad guys can be tracked down. Even bogus registration info is still attached to a taxpayer that can be quizzed. I do not care if there is more preparer regulation, I am a CPA and past all that. All the regulation in the world does not make a difference to those that are outside the rules and stay there.... Rich

The people that don't hang around in the off-season don't know what they miss in educational opportunities on this board. I am getting really interested in this topic, and the one about donating the LLC interest. These are not things that I see everyday in my little rural practice.

1. Good For You 2. Great for you I paid 525K for a 1230 square foot fixer in the bay area and got a steal, but that is not paid for yet. I wish I was Rita. Tom Newark, CA

I have a new answer to give clients when the price of their return goes up..... Dear Jack, Thank you for being a valued accountant partner. To support you in your work, I am reaching out to provide you with advance notification of two upcoming price changes that may affect you or your clients. 1. QuickBooks Online Plus 2. QuickBooks Desktop Payroll These price changes will enable us to invest in the further development of QuickBooks to meet the needs of accounting professionals and the business clients you serve.

My house cost $103,500 and it's paid for, too! I had to refinance to buy my ex out for $40,000, but that's paid off, also. Gotta make enough money to pay the property taxes and oil bills.

As long as YOU are happy with what you are making - and you can pay your bills - it kinds doesn't matter what you make. However, do NOT sell yourself short and undervalue your services just because you are "doing OK."

It isn't just the DIY software that people buy - I recall reading about one "preparer" who used the IRS free-file site for all her clients. She only did returns where people's income was low enough to qualify, and I am sure that almost all, if not all, of her clients got EITC. Her prices were very low, because she had no overhead. But regulating preparers will not stop people like her who don't sign returns as preparer.

Oh, I never said I was satisfied with what I make. I know I'm worth more. But you can only make what people will pay. If you can't get the client, you don't get any money. I'll take decent money over no money. And I make very decent money. No, I don't take every job. I turned away a bookkeeping client last week because I figured it would be a hassle every time I turned around and they would be in business about twelve long, miserable months. Six if I was lucky. There are too many preparers (here anyway), and the risk of getting caught preparing crappy returns is, well, about zero. You can charge what people will pay you to solve a problem. If crappy returns are not a problem, and If a great number of people actually prefer a crappy return, well, it's crappy for your bottom line. Plus, it doesn't take a genius to do taxes anymore, they say, so there's that. You know what would happen if there were twice as many doctors, and twice as many lawyers? Yep. Medical care and legal work would cost less. It's just what happens with competition.

One of my husband's cronies, back when he lived in the San Jose area in the early 80's, paid close to $1M for a house that had originally been a chicken coop.... I kid you not.

It is my understanding that if they can claim the children as dependents, they count for the purpose of determining affordability. Even though they may not pay for their insurance, they are paying all of the other bills (one assumes) and providing more than 50% of support since they are claiming the exemption. Therefore, they count for purposes of calculating income in relation to the poverty level.

Yeah I guess you're right. I used to object to this because I knew many capable preparers (no credentials) who handled run-of-the-mill returns at a reasonable price. Now, many of those have retired or died and I get guys like a 22 year-old (apparently shopping around) who complained to me this year (after I gave him the 8867 quiz): "You guys are the only one who ask me all that stuff!" From that, I'm inferring that maybe even the big-box franchise employees are letting things slide. I'm already long-in-the-tooth and only got the EA ten years ago because I thought I was going to be forced to, but if the RTRP is resurrected I'd say most competent preparers could handle that okay and not be run out of business. Kinda inconvenient, of course (I sweated blood for that EA test ).

First appointment called and said he didn't think it was a good fit based on the information I told him.. First appointment cancelled. I think he thought it would be too much. Made second appointment for next week.

Randall: If the original owner did the 1031, and then died, the step up happens, and the 2 year look back closes. And there is no amendment to the original filed return of the deceased, because the proper use did not continue for 2 years. That time period closed due to the death. Rich

'sup?

"If you want to quickly sell inherited real estate, the case for a 1031 exchange weakens. If your goal is to unload the property within a few months, it may not appreciate much (or at all) in that time. The taxable profit above the stepped-up basis may be small or nonexistent, so capital gains tax may not be much of a concern. If you decide to hang onto the property for a couple of years, then the case for initiating a like-kind exchange grows stronger." https://www.fergusonfinancialinc.com/

I am still kicking myself over bidding too high on a guy that came in February, BB. He was very disorganized, had several mutual fund sales, retirement, W-2, wife had SS benefits and retirement, eight or so entries on Sch B. Not a difficult return for a tax person, impossible for a DIYer. I padded it a little (for me, I know, not for most of you) and told him $225 and didn't see him again. He was well dressed and had a good job. It would have taken a little time getting him set up, but the returns would have been much faster in future years. A good client. No begging for accurate expenses and all the income, no proving these are your kids, etc.

In DC there is a guy who paper files every return and never mentions himself on the Return. He moved to MD really closed to the DC border because DC was on his case and has been doing this for about 20 years...even after being in Jail for preparing fraudulent returns. Immigration put him in jail again for 6 months last year between June and Nov and one of the extenuating circumstances mentioned in court was the fact that he was a person of good moral character who prepared taxes for the community. When I read that he was a tax preparer I laughed because he never signs any return so there is no record he prepares return.

That's my philosophy too -- even if it did take four or five hours. $275 dollars is $275. After all, what am I doing after tax season that's so pressing I can't make up the lost time (playing Sol for a couple of hours doesn't pay nearly as well). Only thing that might make me not do it is the "minister" portion (those "C" guys are supposed to be traveling evangelists and most aren't). IRS likes to force 'em to switch to W-2 status and kill off their (big) mileage expense.

I saw one of these a couple weeks ago, the fraud/indentity verification dept is sending them out. I'd never seen one before either, but verified the phone number as their fraud unit. Hope everyone is smart enough to check these out with us!

Our hobby is watching online soap operas...

IMHO, you under charged your client. My very minimum charge would have been $475. Depending on how many other factors were involved in the actual preparation of the returns is the only way I would feel comfortable in telling you if my fee would exceed $475 or not. It's amazing how some people can split hairs in regard to your fees in preparing something as important as their income tax return. And don't let the fact that you are not a CPA discourage you from charging how much your fees should be. I have seen errors on returns prepared by CPA's, their receptionists, and others regardless of what initials they use on their signature line. If said client doesn't return, consider yourself fortunate as he/she is likely to be a thorn in your side every year. Let them go play "winning through intimidation" somewhere other than your office!

Oh, I've been hugging all wrong.

The clock starts running from the last date of assessment (think audit). It doesn't matter who files the return. With IRS substitute for returns, the process may not start for 4 or 5 years, thus extending the statute. The collection extension (5 year waiver) you allude to has not existed for many years.