FBARs: Prepare them or Refuse them?

[Sara EA]

If clients want you to review a prior return for accuracy, definitely charge.  If they just want you to review the return to see how much you'll charge, you might want to decline.  If price is their primary concern, you probably won't engage well on the things that are your primary concern.  It sounds like these clients were trying to tell you how much to charge.  Who needs that?

We are in the fortunate position that we don't want any new clients and only take the few who are referrals from people we don't want to disappoint.  When we get a phone call asking how much we charge, it's easy to say we're not taking new clients.  The tough ones are people who went to their old preparer for like 40 years and always paid $200.  When you tell them it will be more like $800, most understand that they have been getting a too good to be true deal and accept our engagement.

[Catherine]

I'll chime in too, although a lot has already been covered.  Back when the FBAR was on paper, I prepared them for clients to sign and mail in.  Now that they're 100% online, once I read the possible peril to *me* I figured no one would pay me enough to make it worth the risk.  What I have done, after providing the online link, has been to review the preliminary (basically the paper/pdf version people fill in to be ready) and made sure boxes were checked, etc. Yes, much of the same info is needed for the 8938 - and part of the reason I "review" the FBAR form is to make sure I have all the required 8938 information (if any).  

As far as the "weird pension" goes, boy there is so much there.  Tax treaty needs to be read, first off.  Many pensions are like social security here, or defined benefit plans here, where there is no reporting requirement for FBAR purposes because the person has NO control over the funds.  They show up in a bank account on some schedule.  But sometimes they're more like a 401k, under some level of control, and therefore reportable.  That makes "weird pension" not always an issue.

I'm glad it turned out well for you in this case as they were not willing to pay your fee.  But in your copious free time, read the preparer liability on the FinCen site.  No way, Jose; I'm never going there.