Average Tax Prep Fees

[Guest Taxed]

I think the last time I checked you can not file a 1099-C to report a dead beat client to make the balance due a taxable income, unless you are a financial institution in the money lending business.

And just to add you can't even deduct it as a theft or casualty loss.

I will not do a new return if there is an outstanding balance still unpaid. The issue that I frequently face is that they will make a partial payment and want me to start on the new return.

I have an extension that is pending payment. Just called the fellow this morning and told him to look at the calendar. 10/15 is fast approaching??

Edit; Thank you JohnH. We were both posting but you beat me to it!

[kcjenkins]

Sara, the easiest way to fire any client is by raising their fee significantly. They either leave on their own or they pay the higher fees and that makes you not mind so much. And next year you raise it again, if you still want to get rid of them painlessly. As for the long time client who's fees have not gone up as they should, that is YOUR fault, because the IRS has been helping make that easy to fix, with their constant addition of new forms and such. You simply tell them that due to the new laws [healthcare is certainly this years reason] and the raising software prices due to those changes, plus more CPE for the same reason, you have to raise your prices. And in future you do this regularly. It's not fair to you to not be fairly compensated for your knowledge and skill.

PS you do know I'm female, right?

[Catherine]

Sara, the easiest way to fire any client is by raising their fee significantly. They either leave on their own or they pay the higher fees and that makes you not mind so much. And next year you raise it again, if you still want to get rid of them painlessly. As for the long time client who's fees have not gone up as they should, that is YOUR fault, because the IRS has been helping make that easy to fix, with their constant addition of new forms and such. You simply tell them that due to the new laws [healthcare is certainly this years reason] and the raising software prices due to those changes, plus more CPE for the same reason, you have to raise your prices. And in future you do this regularly. It's not fair to you to not be fairly compensated for your knowledge and skill.

PS you do know I'm female, right?

On another tax forum I frequent, someone posted a couple years ago about a royal PITA client -- business, always calling with problems, driving him nuts for the $1250/year fee charged.

He had followed the advice given about doubling fees every year. $2500 -- paid without blinking but still a PITA who wouldn't go away. $5000 -- ditto. $10000 -- and suddenly they're his favorite client as he's finally being paid what their interruptions are worth to him!

Frankly, if they'd bailed at the $5K point -- that's *still* a win if someone is really driving you nuts. Life is too short to be driven crazy but nutcase clients. And yes, it's hard to fire them but once you do you invariably think, "I should have done this YEARS ago!" (Ask me how I know, lol.)

[Guest Taxed]

Since we are talking about PITA clients. What attribute or behavior do you find that drives you nuts.

My most serious issue is unorganized clients (shoebox or grocery bag full of receipts and paperwork all jumbled up). The others are habitually late in responding and slow payers.

I have a somewhat workable solution for the unorganized client. The slow payers are the worst. That is why I was looking into a bank product to grab my fees if they are due a refund.

[MsTabbyKats]

Believe it or not....I don't have a problem with slow payers. I guess I'm just a world-class nag.

But...what aggravates me the most...the PITA who thinks their tax return is the most important legal document ever written!

I just fired one:

Wife is attorney (the PITA); husband retired

Return is really no big deal...except for one specific to NYC form (20 years...300 returns/year....she is the only one that ever needed the form)

She gives me way too much backup...and I have to go thru every page.

This summer...for her 2011 return....3 lbs of paper and a 16 page letter of instructions.(This is besides K-1s, 1099s etc.........)

She is always condescending. I didn't read the letter...but looked to the last page to see how long it was....and there was yet again...another condescending remark at the end.

I used to charge her $400. The CPA before me charged about $1500 (I don't remember exactly)

Of course she reads thru the entire return...and will point out typos....such as "and" instead of "&" for names of charities.

If she just gave me "the papers she got in the mail" and a list of charities....it would be a quick return. But, instead, it becomes hours because of reading thru her 3 lbs of notes.

So...I told her "my new software" didn't support that special NYC form.

I know...it was like throwing $400 away....but that condescending attitude....ugh.....I just couldn't take it.

[Jack from Ohio]

^{I do not file the return until paid. No excuses. April 15 comes the same time every year, and people have plenty of time to plan. I get some resistance at first, but stand my ground. I ask if the Grocery Store or Gas Station will do the same for them...}

[Guest Taxed]

>>> but that condescending attitude....ugh.....I just couldn't take it.

I have a retired teacher as a client and she still uses her red pen to mark up the return and point to spelling mistakes of charities, figures that cross the margin etc. One year I asked her if she would like me to send the IRS her corrected version because I could not adjust the margins in my software to accomodate her request. She said yes and i knew what was going to happen so when IRS rejected her paper return and sent it back to her, she shut up. Now she does not bother me and she actually types up in BOLD the names of the charities (she gives $10 to a charity and wants it named) that used to drive her crazy if it was misspelled.

I guess old habits are hard to change.

[MsTabbyKats]

>>> but that condescending attitude....ugh.....I just couldn't take it.

I have a retired teacher as a client and she still uses her red pen to mark up the return and point to spelling mistakes of charities, figures that cross the margin etc. One year I asked her if she would like me to send the IRS her corrected version because I could not adjust the margins in my software to accomodate her request. She said yes and i knew what was going to happen so when IRS rejected her paper return and sent it back to her, she shut up. Now she does not bother me and she actually types up in BOLD the names of the charities (she gives $10 to a charity and wants it named) that used to drive her crazy if it was misspelled.

I guess old habits are hard to change.

Did you sign the paper return?

[Guest Taxed]

The return was signed by me and her when she picked it up.