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Even with professional services, I personally like to have some idea of cost before I hire someone. If price is the only consideration, I am probably not the one who will get hired. But I have sympathy for people who want to be sure they can afford to pay me BEFORE they engage my services. It just is not always easy to give people a price in advance.

If I think they're MORE than a tire-kicker or referred by one of my good clients, my line is something like... I charge by the complexity of your return, which is more than I can see from your documents. It requires me to ask you lots of questions; and you can ask me lots of questions, too. I need to review your prior year returns to prepare this year's anyway, so if you loan me last year's returns now, I'll be glad to tell you how much I would've charged for THAT year. Then, you can compare apples to apples. However, with the Tax Cuts & Jobs Act and the SECURE Act plus any changes in your financial life since 2018, your 2019 return fee could be very different from 2018. Not to mention the new CARES Act which changes our planning for 2020. When would you like to drop off last year's return? If there's an entity return or a Schedule C/E/F or even a K-1, the above "talk" gets more detailed. I still give a price RANGE and try to quote a high enough top range to give myself a margin for error and to make the new client happy when I come in under my estimate, telling him something like..."because you were so organized which saved me time and saved you money...." I'm way off once in a while. I've usually stuck to my high point on the range with a warning that I am reviewing my price structure for next year. I have called a client in the midst of preparation to say I've found something you didn't tell me about (maybe one of the 92-page gas & oil K-1s) which changes your fee to $XXX; would you like me to continue? If they come as a recommendation of a very long-time client -- one that I've raised prices slowly over the years -- and have a similar return to their friend's return, I find myself torn. A stranger walking in the door would get a much higher price for a similar return than a very long-time client. But, the friends have talked with one another. I pick a range higher than their friend/my current client but lower than what I'd charge a complete stranger. Then, I'm back to the "reviewing my price structure for next year" warning. I've lost only one of those, and that was years ago.

My real sales line on this subject goes something like this: "I charge by the form. I don't know for sure what forms you need, so I don't know for sure what it will cost. If you will show me last year's return, I can tell you how much I would have charged for that return. When we get done with the return this year, If you don't like the price, you can pick up your documents and walk out, no hard feelings. I price my services reasonably, and I think you will see that when we get done." I have never had anyone pick up their documents after I have completed the return. I think that knowing I will give them a last minute opt out gives them confidence. Or, I have them so far into the process that even if they think I am a little high on price, they don't want to go through the exercise again with someone else. Tom Modesto, CA

Copied from IRS eNews: "Individuals and businesses may take advantage of temporary changes this year involving charitable contributions. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income in 2020, while a corporation may deduct qualified contributions of up to 25 percent of its taxable income. Contributions that exceed that amount can carry over to the next tax year. For 2020, a special rule is also in effect allowing enhanced deductions by businesses for contributions of food inventory for the care of the ill, needy or infants."

I charge by the hour as some forms take a very long time, some, not so much. Over 20+ years I have explained to clients that the better organized their data and documents, the less time it takes. I provide organizers to those who request them and to returning folks with rentals or Schedule C, the organizer pages showing the prior year figures. This helps prompt them to find that insurance figure or remember to list the new equipment that wasn't there last year. And if I have to email more than 2-3 times with questions or clarifications, I add on some time for that. Because every time I have to stop to get some reply and go back to the return often a day or more later, it takes a tad bit at least to reorient and is unproductive. Over the years returning clients either get better organized to reduce the bill, acknowledge and understand that 'I'm billing time,' or move along which is just fine with me. I want clients to be satisfied with my work and understand that I really care to do the best work I can taking the time necessary. I'm at about 50-60 long time clients, maybe one or two new ones annually, and we understand each other. I harbor no hard feelings for those who leave and have even pointed out to some that they have reached a point that going to the free help for elderly would be in their best interest. Others have told me that I am not allowed to retire. Well, I'll be 75 next year. My license is good for 2 more years. We shall see....

I Will definitely use that on next "shopper". I really do not want anymore clients.

Taxpayer Karen, you can avoid interest and penalties [maybe not entirely if you've not paid quarterly] by paying what you owe now, before July 15, and here's a Form 1040-ES. I will get you an extension today, and prepare your return as soon as I am able. I will complete your return even before my own, provided I have everything needed to prepare yours. I understand you don't know what you owe; I don't know what I owe either. That's why I estimate as closely as possible, and pay in quarterly what I think is a little too much.

"I can e-file an extension for you or you can take your information back and look for another preparer."

The individual reports the K-1 income in the year that the K-1's fiscal year ends, so in your client's case, the K-1 activity for fiscal year end 7/16/20 would be reported on the individual's 2020 tax return.

I will do my best. Tom Modesto, CA

I used to mail paper extensions in a box. It was a lot easier for me to put 300 sheets of paper in a box and it seems like it would be easier for the IRS too. #ExtensionsAreStupid

That's right. We all do that. We just don't realize it until NOVEMBER! LOL

I’m a liberal and I get pissed off mad when ‘little’ changes to the tax code (like PMI reinstatement) are done so far after the fact. Or in December, ferchrissake! I know what a headache this kind of stuff means for us. My only redeeming factor is that most, if not all of my PMI clients don’t itemize anymore, and CA never conformed to PMI so no change there. I only have one client that took a stimulus loan, no PPP, and I’ll deal with the IRA withdrawals next year. But holy crap. Stable tax laws allow businesses to plan ahead, budget for capital improvements ... I’m so happy at least half of my clients are retired.

Or they will be coming for you, and it was nice knowing you. Enjoy your stay at the crossbar motel. Just kidding. I forgot to file a 4868, remembered at the crack of 9:00 am Thursday the 16th. I had read that IRS computers had some problems on Wednesday, so I thought what’s the worst that can happen if I send it today? It was accepted. If I have to go away for a while, y’all know why.