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I think the IRS is limited in the collection methods it can use to collect the penalty, but not in their ability to enforce the penalty. Therefore, if he is ever due a federal tax refund, I believe that they can keep the refund as payment on the ACA tax. I have not had this situation, and I did not research, so this is just from my not necessarily reliable memory. And I also agree with ILLMAS, you should tell them they owe the money in a way that lets you keep a record, and if they choose not to obey the law, they are responsible for the consequences.

*cough*Paper*cough*

My answer: "As much as I possibly can!". Really, that has been my go to line. And if they balk at that, then I don't want them as clients. A blank 1040 starts at $200 and goes from there. My average fee past year for all 1040's was about $420. I want to move it to $500. I got golf to pay for. Rich

I'm absolutely convinced that poorly written sentences are intentional in these email scams. The scammer is looking for people who don't pay close attention or even those whose understanding of grammar is not the best. They make the best victims.

Is it 5PM already???

My fees are almost identical to Black Bart's, which surprised me. Basic 1040, one W2, no CTC or EITC, and one state is $75 unless dependent child and I do parents' return, in which case $40. Extra forms, extra fees. Piss me off and you get your papers back at no charge. Make me nervous about your ethics and you get a referral to to elsewhere. Life is too short to put up with nonsense.

Lime........ Lemon....... It still should be deductible....Yup!...........................

Sorry Yardley, I miss quoted the second one, would also be about $250. The last one would be 100-150. Be kind to yourself, one thing I've learned is better to charge a little more, because you're going to earn it anyway. Good luck. Bill

I had it happen several years ago and I simply paper filed the w-2 forms. Never heard anything from anyone so I guess it worked.

I use a "base plus" system of pricing. Tax year 2017, my fees would be $170 for the situation you described. If childcare or other additional forms end up being needed, then extra fees are applied.

These prices probably won't mean much to anybody here unless below the Mason-Dixon line, non-urban, or away from the southern east coast.

This is what I did. Can't spend any more time on $66 of FICA. Thanks much!

I'm in a similar area (30mins north of Boston), I would quote $250, but mention it could be a little more or less. For your second return I would quote 100-150 depending on how I read the new client as to potential surprises. Thankfully I don't take on any more clients unless it is someone's kid or grandmother. I've turned down a few recently, were referrals but since I've reached what some would call full retirement age, not taking on the extra work felt pretty good.

Um... it's a lime.

Maybe you should bypass ATX altogether and create and file the W-2 directly on the SSA site for free. Or, you could use one of the other online filing sites for a nominal fee.

Thanks! I needed that! Huge help to save steps (and keep the dates consistent within the return)

I don't do an image. Just use computer printed name. The date is automatically on the preparer signature line. Just link that date to the EF form and the state EF form. Always mark returns complete when done. That makes the 1040 date freeze as long as it's checked.

With Drake all forms have been ready I have 67 returns accepted by the Feds. I have 5 clients who have received their MD refunds already.

One of the best beers I ever had was a loganberry beer and they put some dehydrated berries in the glass, which rode the bubbles up and fell back down to the bottom, until they rehydrated. I'm easily amused!

I didn't want to say anything because my preference is not to have fruit with my beer. The orange slice on a Blue Moon freaks me out. And when in a Micro Brewery and the person next to me has an IPA with a watermelon slice or blueberries on the bottom I loose my appetite.

The first one would run about $230 including the state return. Schedule A will add $55 to that. Basic tax planning I'll toss in for free (assuming it takes me ~15 min or less), else it's a separate later appointment at $75 an hour. Most basic return $160-ish. Discounted to $50 or $30 (or even free) for the child of a current client. Depends on the client and the circumstances. I'd rather do a dependent return for free rather than have a college kid muck up their parents' return e-filing by claiming themselves. Nor do I feel it's appropriate to charge $50 to get some high school kid's $38 refund back. Any un-cooperation from parent or kid and the price spikes, though. Like Roberts (great puppy picture) there are folks whom I charge FAR less than the return is worth. That is my charity and my decision. I do a free, reasonably complex, return for the widow of my husband's best friend from college; I promised him that before he died. I have an elderly couple who have a return I should charge over $700 for, whom I charge about $200 - I see what they are living on, and it's not their fault their return is a complex mess (and let's not get started on financial advisors who get older folks into complex investments). But another elderly client with a similar return pays me the full $700-ish; I see that she has the income to pay that without suffering or flinching. Facts and circumstances...

$275

My general quote would be a disclosure riddled $175 that is adjusted up and down according to factors some of you might not agree with. Ability to pay, where they live, how they came to me, what they paid the previous person and how nice they are all factor into the fee. The same return can be charged anywhere from $75-$250. I have some ghetto living clients who are awesome and I charge $75. Disabled vet client gets his rather complex return for $125 plus a free house call. On the same switch I have very wealthy 30ish year old clients living in nice homes their grand parents gave them and I charge $450. All they have are a single investment account 1099 and a K-1 from a trust with 3 numbers (div, int and capital gain).

If the prior preparer, like you, is adding tax planning for 2018, then I would add $100 to my fees. But, I'm going to try to make that a separate appointment after tax season. I don't have many, if any, clients with childcare &/or with no Schedule A. In fact, I have lots of Schedule Cs, K-1s, and multiple-state returns. And, I'm trying NOT to take any new clients at less than $500. - 1040 with one State. One or two W2's within the same state. A bit of interest and dividends. Couple dependents. No EIC but childcare. $290, but would probably discount if all info ready at once & no surprises - Schedule A - few itemized deductions (Real Estate Taxes, Mortgage Interest, Charitable Contributions). $380, give or take 10%, but everyone forgets their car tax and charitable contributions are a mess and..., so probably NOT less. - Tax planning for the following year (use ATX Planner) + $100 is what I'm thinking now, could be a lot more for SE, biz entities, lots of detail/computations What would you charge for the most basic return? 1040 with one state, W2, No itemized. $200, give or take 10%

Gail is EXACTLY correct!

Big box places would probably charge +$250 for a 1040 & Sch A, and I really don’t know if they offer tax planning, but why can’t you compete with big boxes in prices? A couple of years ago a new client brought in their prior return and they only paid $35.00 for 1040, I told them my fees are not even close to that, so you might want to go back and pay the $35 again, they said hell no, I rather pay your fees then to wait for 3-4 hours in line.

I don't charge by the form. I do keep a time sheet but don't charge strictly by an hourly rate. I have a minimum of $100 for a simple return, $150 for a simple Sch A return. I suppose 'simple' can vary. I quote the minimum and ask a few questions, quote a range and tell them it could be higher depending on their circumstances.

I charge by the form and input documents. Last year, I raised my fee for a 1040 to $95. I charge $2 for every W2 and $1 for every 1099. Associated forms have various charges. I can always discount if the entry on that form is minimal. So the first return is about $115, add a sched A and add $30 if id does not require the non-cash charitable form, $15 more if it does. I include basic tax planning (10-15 minutes during the client interview) for free. Gives me a chance to see what the client is really up to. I charge $95 minimum per hour for an appointment for tax planning and consultations. Tom Modesto, CA

I would wonder what the big box places would charge for this?

Several years ago we did something similar to what the other preparer is doing. We had a number of clients that were not paying their keep. We sent out a letter mid summer to that group and told them that our minimum fee going forward would be "$X" and that they were welcome to stay if they were willing to pay that. Otherwise we wished them luck. It worked out very well. We were able to get rid of the high maintenance low pay clients and keep some that were willing to come to the party. It worked out very well for us and we did not see any dip in revenue for it. To answer your question directly (almost) we have a minimum fee that we charge for the basic return and it goes up from there. The basic fee works well in my corner of the world, but probably not any where else. So to tell you what my fees are would be meaningless to you in your corner of the world.

It's FIve O'Clock somewhere......

I swear.....most of my time is spent explaining to clients why their tax results are not as good as their friend/hairdresser/neighbor's "but my friend does not have any kids and she filed head of household...so that's how I want to file" "Cindy got earned income credit and got a return of almost $3,000...why didn't I get that much?" "I'm sell Thirty-One, so I can claim all of my bags, clothes, and household expenses, so make sure you include that in my return". I could go on.....

I have a few of these clients. I send them an email, telling them that the law says they should pay, and warning that future refunds could be withheld. That's federal. The Massachusetts law is different; they *can* go after you in the state - including for the amount not paid to the feds (Mass discounts their own penalty by the federal penalty paid). I also tell them (in person or by phone) what the federal collection statutes allow and dis-allow. I tell them they can decide if they want the feds or the state to get the extra penalty amount... and those who detest the aca rules detest the Mass rules even more, and usually end up paying the feds.

I completely understand fees vary by region. Was just hoping for a general idea in any corner of the world. I live about 30 minutes north of Philadelphia. It's definitely a high cost region and I know my rates are no where close to what they should be. I do plan on increasing my fees moderately this year.

Drake is always on top of things.

Look at the sect. 163(j)(7)(A). Also, per section 163(j)(7)(A)(ii). an "electing real property trade or business" is not considered a "trade of business" for the interest expense limitation. An "electing real property trade or business" is one that is described in sect. 469(c)(7)(C) as a real estate prof. and makes an irrevocable election to use ADS. So as with the new section 199A deduction, it looks to me that case law and sect. 469(c)(7)(C) will determine whether a real estate rental is a trade of business in regards to the business interest expense limit, unless we hear otherwise from a rev. ruling or tech. corrections.

Drake makes this so easy. Just sayin

The second trick is to know when to let them go. For me, it is the first instance of unprofessional behavior (such as a nasty-gram message), threats to leave, threats to sue, etc. As long as the person remains civil, I will not give up. The one I wrote about earlier involved more than 60 messages back and forth, but the last one was not civil, so it will be the last one, other than stock replies or excerpts from the program documentation.

The trick to keep from getting aggravated (at fixing the same bleeping problem time and again) is not to think of them as problem clients, but rather as walking annuities... lol.

People like this are not willing to pay either you or me. It was just a quick question yanno.

Raise your rates 20%. Your business will be better, you will have less stress, and you will make more money. I did that in 2014. It works.

Add image of signature to ATX forms: save your scanned signature on your computer go to "customize master forms" open form you want to add signature (1040, 1040A, 8879 etc.) from edit select "Insert Picture" click the area for preparer's signature find your scanned signature select it click the image to resize so that it fits into the block save custom form close custom form the image will cover your printed signature in the block. that way, you can keep the box checked to add your signature to forms and have this customized on your 1040 etc.. Not all forms will take it. Many states will not. For Virginia, I can do it on the 8879 but not on the regular form. I could not get it on the MD forms. I did not try other states. Now I have to remember how to insert the date on the 8879 by entering it one place ( I think on the 1040). Someone gave that tip previously.... Oh the challange of trying to remember things that you only do once a year....

Thank you for the help!