Dropping Non 1040 returns

[Crank]

I have always hated the 1120S, 1065 etc returns.  Now due to health issues the past three years I am considering dropping all but 1040s, mostly.  I do an 1120S for a neighbor who owns a franchise and he is a breeze to work with.

Last year I got a recommendation for a 1065 (rental real estate) and said I would beat H&R blocks price from the previous year.  Turns out H&R charged them $1 (yes one dollar for the return).  Or else I got played but the H&R docs said $1.  I had to purchase the 1065 forms from ATX for ~$55 so I charged $100 for it and a reasonable rate for their 1040.  I told them that I didnt make anything on the return and would have to charge about $400 for the 1065 next year and they were receptive but said H&R was cheaper.  I should charge about $800 for a 1065 according to other CPA's in my area.  Im at the point where I dont want to deal with it for probably less than $600 not including the 1040 which would be about an additional $300.

 

Should I drop them and avoid the stress or just tell them my new higher price and let them leave?  I could accept the stress for $800 (1065) & $350 (1040).  That includes a State and Local return.

[Lion EA]

I tend to tell them the higher price (that it takes for me to be willing to work with them) and let them decide to stay or to go.

[Crank]

Sounds like a plan to me.  Thanks for your input!

[JohnH]

Assuming I were interested, I'd tell them the highest prices, including the warning that there will be annual increases,  and let them take it or leave it.  Who cares what H&R Block charges?  They are already signaling that they want to play you off against the competition and beat you down on price. Maybe you should tell them that buying tax preparation services is like buying oats.  For a fair price you can provide good quality oats.  But if price is their only consideration, then for slightly less money they can risk getting oats that have already been through the horse. 

Most (not all, but most) people who own rental property are a royal pain.  Their whole business model is built on getting everything done as cheaply as possible (plumbing, electrical, cleaning, general repairs - you name it) and that includes tax preparation.  They expect to collect the highest rent possible on their property and pay the least amount possible to those who are their support & supply system.  And they aren't bashful about constantly needling you on price or taking advantage of your time - they frequently take great pride in playing this little game.  These attitudes are generally passed on to them by other landlords or the guy who sponsored the seminar that got them interested in rental property in the first place.  Too much of an entitlement mentality to suit me.  

[Crank]

36 minutes ago, JohnH said:

 Maybe you should tell them that buying tax preparation services is like buying oats.  For a fair price you can provide good quality oats.  But if price is their only consideration, then for slightly less money they can risk getting oats that have already been through the horse. 

I love this!

[Lee B]

Perhaps I am fortunate, that all of my rental clients are primarily operating business clients,

because I don't have these problems. Actually I prefer business/payroll clients and I discourage 1040 clients.

[SaraEA]

Why did Block charge $1 for a 1065????  Aren't they the ones who charge $400 for a one W2, EITC return?  Must have been a promotion.  I pity the preparer.  Block pays its employees on commission, so that poor tax pro likely ended up paying Block for the time spent on the return.

Definitely tell this client your real price and let him decide what he wants to do.  I had a new client this year who always did her own complex return on TurboTax.  I charged her $1,000 (15 PTPs, among other interesting items), and she paid without a complaint.  We'll see if she returns next year.