Do you give free estimates?

[Tax Prep by Deb]

Every year I get that phone call from someone wanting to know if I give free estimates? They aren't asking me to estimate how much I charge for preparing taxes, noooooo! They want me to enter there W2's and give them an estimate of their refund. If they don't like my amount than they go somewhere else.

I've had a couple of calls already asking this and I guy just walked into my office and asked me if I could give him an estimate. In the past I may have been inclined a bit towards this but not now. I have been burned way to many times with clients asking that, taking their W2's with them and I never see them again.

What do you you guys and gals do?

Deb!

[Ray in Ohio]

If it's just a W2 or so, I will do a quick adding machine estimate and a "ball park" refund amount for no charge. But I do not start a file or enter any information in ATX.

[Tax Prep by Deb]

Problem is usually when I start to do that then they start talking about neice and nephews they want to put on return and claim EIC and on and on and on. Thats why they are shopping. They are looking for a tax preparer that will give them the figure they are wanting, not what they are legally entitled to.

If it's someone referred to me by another client, out of courtesy to my client I may do it. If it's a kid of one of my client's I will always do it. But these are people who are shopping for the best refund and hoping they find someone who will not ask the right questions. I'm getting better at picking them out, but it bugs me. I don't know anywhere else I can get work done for free!

I realize that they aren't leaving with a completed return, but now they have figures they can take somewhere else and compare.

I do quality work. I think very carefully about all of my clients and I simply don't have the energy or patience for people like this.

Deb

Ps (a little short of nerves today)

[Lion EA]

No. Well, current clients' kids, referrals, that kind of thing.

[rfassett]

No. The only time I can remember doing anything close to that was for a client I had for a couple of years (the daughter of a solid client multi-business client). She got married last year and her husband said they would go to whichever preparer did the "better job for them". I talked to the client and told her I do not play that game but if they want me to prepare the return for comparision, it will be prepared as though it was going to be filed and I would expect full payment for my services. She agreed. Came in and paid for the return when it was done and said, "sorry my husband says the other guy did better". I of course reviewed AGAIN what I had done and mine was a solid return. I would never do that for free - I just do not play those games.

[Lion EA]

I promised a partnership pro forma K-1s while we wait for the depreciation form to be approved, and a couple of other pieces of info like that for current clients this year. Now that we can file with depreciation, that won't be necessary any longer. Now, if I could just dodge this expected power outage....

[FTS13]

I charge $10 for estimates and I offer to give them the credit should they come back to file with me. I do input everything into ATX and give them an estimate. So far I've had a couple people come back (of who I had given estimates to) and say that they were getting the same amount at other places and since they had a $10 credit with me, they came back.

[jainen]

>>enter there W2's and give them an estimate of their refund<<

No way! Taxes are too complicated and you can't give a new client any meaningful numbers without a full interview based on a written organizer and a copy of at least last year's return. Maybe more. So if he says it's just W-2's, refer him to Free File at www.irs.gov. He doesn't need you--and you sure don't need him!

[Lion EA]

All those online services offer free estimates and only charge to print and file. No need to spend your time on a shopper. I remember being at Block when people would come in looking for an estimate. Our office didn't offer them, but if a preparer had time.... Generally, the people were just checking the results they got on a free file service or via Turbo Tax and were unlikely to become clients, and certainly not loyal, long-time clients.

[Tax Prep by Deb]

>>enter there W2's and give them an estimate of their refund<<

No way! Taxes are too complicated and you can't give a new client any meaningful numbers without a full interview based on a written organizer and a copy of at least last year's return. Maybe more. So if he says it's just W-2's, refer him to Free File at www.irs.gov. He doesn't need you--and you sure don't need him!

Thanks Jainen.

I just fired a client because she didn't like the way I prepared her return. She thought she should be getting more. She has two kids, earned a little over $4,000 (she does receive a non taxable va death benefit from her husband who has died). She also gave me a 1099r that is issued to her son (age 4) and she told me that the VA told her he would have to file his own

return because is name and social were on document. (it was around $2900). So I told her the VA was correct and that it may be subject to Kiddy Tax. I did the research and prepared the return, (the son did need to file and did have to pay kiddy tax), now she wants to simply add it to her return because her name is also on the doc but just as the guardian. I told her I could not do that (it wouldn't boost the refund anyhow because it's not earned income). She wanted to check with the people that did her taxes last year. I asked her to just come and pick up her papers. I have way to much time invested in this without having to keep arguing with her. This is not the year for me!

Deb!

[Guest Taxed]

I will charge $20 for an estimate (how much refund or balance due) and if they have me prepare the return I will discount by $20 so the estimate is free! I will NOT prepare a 1040 showing the estimate because it is very easy for them to just mail that in or copy/paste to their own form.

I do NOT give a final quote until I see all the paperwork to prepare a return. I will give them ranges of my charges if they insist.

I do NOT accept walk-in. Must make an appointment!

[joanmcq]

I don't give estimates. And I work by appointment only, so I don't have a lot of these types of shoppers.

The fee shoppers I get. One of my standard lines is "Until I know a bit more about your tax situation, I can't determine the range of fees I might charge".

[JohnH]

When someone asks me for an estimate I tell them it will take me as long to enter their information for the estimate as it would take to prepare the return. The only thing left is to just push the "print" button. So I'll have to charge them full price.

I give the same answer to someone who wants me to "grade their paper" on a self-prepared return

Funny, I don't get many questions of that type since I adopted that response.

===============================================================

Smart move Deb.

There are people out there who will waste your time and drain your energy.

May as well identify them early and send them on their way.

Then you can spend productive time on work for your quality clients.

[mcb39]

I have never had a request like that as far as I can recall!

[Guest Taxed]

I do realize that there are people who will take advantage of you by shopping around for the biggest refund. But there are legitimate reasons to ask for an estimate, especially the prep fees. As a matter of fact IRS has a whole page on how to choose a tax preparer for the average taxpayer. I think it is ok for a taxpayer to ask a new taxpreparer to explain how they charge their fees and what services they will provide. I would do the same if I was looking for a tax preparer to do my tax return?? Won't you? When was the last time you called a plumber without finding out what their charges were etc.

Anyways slamming the door on taxpayers who are looking to do some "comparison shopping" to select a tax preparer is short sighted in my opinion. I will spend up to 30 minutes with a prospective client (by appointment). I just looked at my book of business and I think I am batting 50% on all so called comparison shoppers who came back to me after looking at HRB, TaxLand etc.

This afternoon I got a call from a woman who went somewhere else for 2011, but now wants to come back to me for 2012. She was a comparison shopper for 2010!

[Tax Prep by Deb]

I do realize that there are people who will take advantage of you by shopping around for the biggest refund. But there are legitimate reasons to ask for an estimate, especially the prep fees. As a matter of fact IRS has a whole page on how to choose a tax preparer for the average taxpayer. I think it is ok for a taxpayer to ask a new taxpreparer to explain how they charge their fees and what services they will provide. I would do the same if I was looking for a tax preparer to do my tax return?? Won't you? When was the last time you called a plumber without finding out what their charges were etc.

Anyways slamming the door on taxpayers who are looking to do some "comparison shopping" to select a tax preparer is short sighted in my opinion. I will spend up to 30 minutes with a prospective client (by appointment). I just looked at my book of business and I think I am batting 50% on all so called comparison shoppers who came back to me after looking at HRB, TaxLand etc.

This afternoon I got a call from a woman who went somewhere else for 2011, but now wants to come back to me for 2012. She was a comparison shopper for 2010!

Your missisng my point. If they ask me what my fee is I can give it to them immediately. I don't charge by the form I have a set fee. Most of the time I make great hourly money, sometimes I don't because of the need for additional research. I will give my client all the time they need with me, if it takes me 15 minutes or an hour it's going to cost them the same. The shopping I'm talking about is taking the same papers to several preparers to see who will do it (in my honest opinion) illegally! What she wanted me to do I could not ethically do and neither should any other preparer. It was a case of grey it was clearly wrong. It always has to do with the EIC and usually comes down to them wanting to claim the dog!

I'm serious, I have a large segmant of EIC filers and many of these will shop not for the best price in doing there taxes but who is willing to put someone down that should'nt be on that persons return. I don't have the time or the patience for these types of shoppers!

All of my clients love the fact that I'm not rushed with them, that they can call me any time with a question or concern. But just today there was a guy that came in that asked if I would give him a free quote and he also came in last year but handed me the info and asked me to prepare the taxes and then when he didn't like the figure (he didn't come right out and say it, but I could tell) he picked up his W2 and said he would be back later to finish. I didn't see him again until this year when he wanted me to do the exact same thing!

Deb!

[Jack from Ohio]

I give NO refund estimates PERIOD!

I use a flat rate plus system for pricing. I will talk fees in depth.

People shopping for the lowest fee are not interested in the quality of work. I have half a file drawer full of "one shot price shoppers" that found someone else cheaper the next year.

I don't play the "I am cheapest" game. I do not give "new client discounts" either for the same reason. My services are worth the prices I have set. Anyone who prices lower obviously knows what their services are worth.

I am picking up several clients this year that have use the "free file" options and messed it up. Some from last year, and some from this year as well. Again, no "new client discount" and reasonable charges for fixing their mess. I always tell them to get a refund from the company that did their returns....

[Guest Taxed]

Deb, I don't condone taxpayers trying to get the biggest EIC refund by illegal means. I go through the checklist and ask for documentation to determine if they are qualifying children etc. If I suspect someone is "renting" kids, I will tell them I can't do their return. I don't run into that type very often. BUT i do run into many referrals and people calling off the yellow pages who want an estimate of the fees and what refund they may expect given their situation. I think most tax software have a quick refund estimator that takes may be 10 minutes to estimate a ballpark refund if they are honest about the data they provide you.

As you may already know HRB and the other tax prep franchises will not give an estimate of the tax prep fees. They will go through the whole return prep and then if you don't like their price, you have to argue with the manager to get your tax docs back. I must get at least one taxpayer a week who call me because they were frustrated with the whole process at HRB. They just want an honest answer to a legit query!

We all work in different markets, who what is good for you may not be good for me and vice-versa. Peace!

[Terry D EA]

I just had this happen this evening. I told my client that if he found someone who was able to get him more, then it was illegal unless he wasn't revealing all information to me. Like the rest of you, if he comes back, then the 20 dollars he paid will be credited to him.

[Gail in Virginia]

I have never had this happen as such. I am sure some of the returns that never got picked up or paid for were this type of thing, but they did not warn me up front.

[MsTabbyKats]

No...I don't give free estimates.

When they ask I say....."I get paid to prepare the return. If I tell you the refund, it means I did the return, and I expect to get paid for my work!"

If they don't ask, but then don't want the return I charge a consultation fee....and tell them I'll reduce their fee if they use my services.

[jainen]

>>I will spend up to 30 minutes with a prospective client (by appointment).<<

I also take time to meet with a prospective client and review their needs and my own. Tax strategy as well as workflow. It seems like most new clients have an IRS letter with a collections or non-filing issue. That usually calls for an advance fee or retainer, which is a great way to see if they are serious about quality. I like a self-filer who realizes their situation (or the tax code) has gotten more complicated. I will give a comparative price on their prior return, but no promises.

[Richcpaman]

Someone mentioned different markets?

If someone came in, handed me all thier stuff, and asked about an estimate, I would talk about the my fees, and what I thought of the info they gave me. IF they didn't like that, then I hand it all back and say: "Have a nice day!" If I thought all they were looking for was EIC fraud, they are not coming in my front door anyway...

Someone mentioned "new client discounts?" I will give you the first half hour of my time, so that *I* can decide if *I* want to do your return. It is NOT the Clients choice. It's mine. They may think that get the choice, but they do not....

Just my take. I do not finish returns in front of clients, I take the info, and then get it done later, and you can come pick it up. No sitting in the chair and watching me do it.

Rich

[ILLMAS]

Need to vent a little, I prepared a tax return for a client about three weeks ago, mailed it to them, spouse calls me to ask why their refund was so little, I took about 20 minutes explaining to them that their income went up significantly from the prior years therefore putting them at a higher tax bracket resulting in a lower refund. Well I thought they understood the reasoning, two weeks past by and I had not received their signed forms to efile, so I called them to follow up, and they didn't know how to tell me that they went somewhere else and that is why they hadn't return the forms to me. I asked what was the problem, my gut feeling was that they were unhappy with refund amount, and they had already starting working with someone else. I told them it was fine, but it would been nice if you would of told me something if you felt I did something wrong and they said that wasn't the problem, so I told them I was sorry for not being able to serve them, but I expected to be paid for my work.

[MsTabbyKats]

Need to vent a little, I prepared a tax return for a client about three weeks ago, mailed it to them, spouse calls me to ask why their refund was so little, I took about 20 minutes explaining to them that their income went up significantly from the prior years therefore putting them at a higher tax bracket resulting in a lower refund. Well I thought they understood the reasoning, two weeks past by and I had not received their signed forms to efile, so I called them to follow up, and they didn't know how to tell me that they went somewhere else and that is why they hadn't return the forms to me. I asked what was the problem, my gut feeling was that they were unhappy with refund amount, and they had already starting working with someone else. I told them it was fine, but it would been nice if you would of told me something if you felt I did something wrong and they said that wasn't the problem, so I told them I was sorry for not being able to serve them, but I expected to be paid for my work.

When people complain about the "small refund".....if it's a basic standard deduction I tell them...."Go anywhere else....and if anyone gets you one penny more than me, I'll give you your money back"

With itemized etc....I go over the deductions....and show them "room for improvement" (maybe they forgot something?). Then I tell them that they are free to go elsewhere, but I put in my time and did the return with the information given to me....and I expect a consultation fee.

I doubt anyone will pay the full fee...but you can never tell. I also throw in that if they come back to me in the future I will deduct the consultation fee from any future fee.