Does Your Pricing Structure Change As We Near April 15th?

[Yardley CPA]

I've read some preparers (and even the self-prepared programs like Turbo Tax) increase their fees as we get closer to April 15th.  The article mentioned that Turbo Tax ended their special offer on March 18th and now individuals purchasing their program will pay a premium.  So do your rates increase for those clients who are just now dropping off their information versus what you charged for the returns you prepared earlier in the season (all things being equal.) 

I don't add a premium to those who drop off information later in the season.  I may be less inclined to discount the return any but I certainly don't add a 25% "late fee" to the invoice (I would never actually show that on an invoice anyway but you understand what I'm saying.).  Do any of you charge more as the season wears on?

[JohnH]

I don't charge more, because there is no such thing as "late in the season" for me.  I use extensions to take Apr 15 off the table as a meaningful date, so there's no need to treat returns coming in now any differently than those that came in back in Feb.  They drop the info off, I give them an extension, and we move on. Since this effectively increases the number of returns I can file, and take the pressure off me, I see no reason to charge them more.  An hour of my time in March or April is the same value as an hour of my time in May, June, or July as far as I'm concerned.

[Catherine]

If someone is absolutely determined to file by 4/15 and I have to bump them out of the regular queue, I charge a "rush" fee (or something similarly named) and tell them specifically it is because other people must wait so that I can complete their return.  Hopefully teaches them something plus reimburses me slightly if there are folks I then have to contact who expected to be finished.   But normally - nope.  I *love* extensions as I cannot see the point in killing myself to finish a return by a deadline when the client got me papers late.

[RitaB]

1 hour ago, Yardley CPA said:

Do any of you charge more as the season wears on?

Not because of the date alone, but I do find that I charge more for can't get it together the later they are at can't get it together.  I think that's more a function of Rita wearing on. 

I, too, love extensions, and never fuss at people for coming in too late for me to get their return done by April 15th.  I just keep cool (well, I pretend to keep cool), and say, "Hey, thanks for bringing it in, I'll have to get you an extension, just like I get myself one, and I'll get to it as soon as I can."  I go back to normal hours on April 15th and get to it when I get to it.  Happy for the work.

I also do not have a deadline for dropping off, because I'd feel obligated to get those returns done.  I feel like that is fair.  And clients do, too.  Trust me, they do.  If I give you a deadline, I'm imposing one on myself.  Prefer to be laid back about it.  There is never a time from last week of January on that I am caught up.  It would be worse if I had more drop offs because of a deadline I set.  I already can't get done by April 15th.  And, that's just fine, because April 15 means nothing with automatic extensions.

[ILLMAS]

No, but I no longer prepare last minute returns.

[Richcpaman]

I have.  An extra $175 above your regular invoice if you want to drop it off after April 1st, and have it done by April 15th.

I set up appointments for everyone before April 1st.  If they miss it, they pay.

My time is MUCH more valuable before April 15th.  I file as many extensions as I can, but they pay if they do not want to extend....

Rich

 

 

 

[Randall]

At this time, I'm hoping they come in later.  Good excuse to tell them I'll have to file an extension.  I tend to get some of the quick easy ones done ahead of the queue.  Also some who don't get some K-1s until about this time.  I know they have to wait until around this time.

[JohnH]

11 hours ago, Richcpaman said:

I have.  An extra $175 above your regular invoice if you want to drop it off after April 1st, and have it done by April 15th.

I set up appointments for everyone before April 1st.  If they miss it, they pay.

My time is MUCH more valuable before April 15th.  I file as many extensions as I can, but they pay if they do not want to extend....

Rich

 

 

 

I think the last sentence is the key to how one runs their office.  In my office, "if they do not want to extend" isn't an option. I make the extension decision, not the client. 

[BHoffman]

I don't change my prices but if I file an extension and don't get their paperwork until October and they know they owe, they only get one chance before I politely fire them.

 

[GeneInAlabama]

I don't mind preparing a return after October 15th.  The client is the one that pays the penalty.

 

[Lion EA]

I love extensions, and even the people who can't get it together until October or November or the next year, so I can work all year long and make money all year long.  I almost never let someone jump my queue.  I have done some quick ones ahead of their spot in line when they were nice about it and long-time clients and had a one-time need (first FAFSA is one example) and charged them a $100 rush fee or even an additional 50%.  I had one this year who needed a prior year done for a mortgage, and I said No at first because I never prepare prior year returns during the main tax season.  But, he's a nice guy who's been with me a long time and had everything in perfect order and offered to pay whatever I wanted; so, I charged him double.  As I told him, and he was fine with it, I might lose a client for good that gets pushed farther back in the line, so I need to cover myself.  $1,620.  Probably worth it.

[BHoffman]

I'm going to learn to love extensions.  I do a lot of financial statement, some bookkeeping, some consulting stuff that keeps me busy all year, but it would be nice not to feel that self imposed pressure for the April deadline.  This year, for sure.