EA Renewal Fees

[Terry D EA]

I have been looking to see the status of the proposal to raise the EA renewal fee from $67.00 to $140.00. I checked the docket on the Federal Register and from what I see, it is assumed there has not been a final ruling. If this proposal becomes final, the cost to maintain the EA license, like everything else, will have gone up significantly. I enrolled in the third year of the renewal cycle for my SS# and have to renew by January 2023.

$140.00 renewal

$35.00 PTIN

On the above two fees, I am wondering what do we really get for $175.00? Just the right to practice and be held accountable?

$600.00 (Average 100 hours CE Package give or take) Yes, you have to stay updated and it seems it is never ending. I wonder how folks that are seasonal do this without performing some type of work or study all year. My practice started years ago with the idea to work four months in my retirement years and cruise on the beach the rest. That idea was a great plan but, I am now year round and try to only work from 9 till 1 each day M-F. 

$386.00 NAEA membership & Two states (This is me personally, while some find this as not helpful, I have found it to be very useful for now. I do like their discussion board, but the ATX Community has been the best for me for over 20 years. Other resources such as verifyle and others from the NAEA are useful as well) 

So, for me, $1,161.00 is the magic number to maintain my EA status. I'm not complaining but I sure hope my clients are appreciative of the additional cost that will cause my fees to increase.

 

[Lion EA]

Make sure you communicate to your clients how your time, effort, and money spent on your education benefits them! They can't appreciate what they don't know.

PS: I also like NATP, even though the state chapter events are a bit far for me to travel. But NATP has lots of webinars.

[Lee B]

My annual Oregon renewal fee for my office and myself is $225 plus 30 hours of required continuing education every year.

i have been a member of NAEA several times but for me it was never cost effective, since there isn't a local chapter of NAEA

even though our immediate metropolitan area has a population of of about 300,000.

I do most of my continuing education via self study and online webinars at a cost of about $300 per year.

I regard it as a cost of maintaining my competency and providing my clients good advice and service .

Not every tax issue comes up every year. Without classes how would I keep up to date with the changes and issues I haven't dealt with for a few years?

 

[ILLMAS]

Funny, when a client comments about how much they pay in credit card processing fees, I normally remind them that is part of the cost of doing business but I rarely share that I also have cost of doing business.

[Terry D EA]

On 8/30/2022 at 12:52 PM, Lion EA said:

Make sure you communicate to your clients how your time, effort, and money spent on your education benefits them! They can't appreciate what they don't know.

PS: I also like NATP, even though the state chapter events are a bit far for me to travel. But NATP has lots of webinars.

Ya know, I try to do this but not boast about it. For the longest time, I did not increase prices and when I did, no one complained. I have taken on a couple of resolution cases and no complaints about the retainer. This upcoming season will be one where prices will increase maybe by 10% across the board. Like all of us, everything has increased. Drake increased the software this year and with the basic budget for basic office needs, to start preparing returns for 2022, I'm close to 5K to open the door. If I have a client that wants to whine about my fees, or a few dollars increase they can move on.  

[Lion EA]

Decades ago at HRB's preseason training, they told us to think of something about ourselves to use to open with each client, something personal for a client to know us better but preferably something about our life as a tax preparer to lead into tax prep. I'd earned my EA that fall, so I had my opening: explaining what an EA is, the studying/classes and 2 solid days of tests, and how it benefits my clients. Since then, I would talk about the classes I took about new tax laws -- as opposed to talking about just the new tax laws. Or how enthusiastic an instructor I had was about how a new tax law can help me save my clients on their taxes. How what I learned can save clients money. A spin that talks about my education benefiting them. I try to do this.

I also have not been increasing prices fast enough and have been thinking that a near-universal 10% increase is due for next season. I have too many complex, getting more complex, needy clients (most of whom are appreciative) and will not mind if some go elsewhere. Are you sending out communication prior to tax season? 

[Lee B]

I usually don't send out communications this time of year. I took an online class last week that covered the Residential and EV Tax Credits

which mostly go into effect on January 1st 2023. The changes are substantial and have too many layers of detail which will definitely confuse clients.

So I am seriously considering sending out a letter asking my clients to contact me before they assume that the salespeople they are talking with actually

know what they talking about  I have one client who twice in the past five years spent money on their house based on a salesperson telling them

they would get big tax credits. They were shocked when I explained to them that their projects didn't qualify. Of course they had no paperwork from the 

company or the manufacturer. When they called the companies who did the work, they were told that their projects didn't qualify

and surprise, surprise the salespeople they dealt with didn't work there anymore.

 

[Medlin Software, Dennis]

CODB.  Always interesting.  I have customers who do not plan on, or say they can't afford, to keep current.  Had someone today, ask if they could get a discount as they were trying to save $3500 by doing their own accounting (scary, go in house to think thy will save $3500, need a discount on a $75 item - likely has little or no accounting training).

Another having issues because they have not updated in more than 20 years.

My all time confusing one was someone who wanted to get out 10 paychecks in the next few moments, but at the time of needing an update, said they could not afford the then $65 fee for several months.

Or another topper, someone preparing payroll for others complaining that I no longer allow them to use W7, which can no longer considered safe for anyone caring tor data which needs to be kept secure.

As an aside, do any of your clients ask about the safety of their data?  meaning, do any ask if you are compliant with the IRS (I think it was the IRS) regs about doing things such as using a current OS?

[Lee B]

No, I have never had a client ask me about data security. When I suggest things they could change to improve their own security they just stare at me and don't say anything.

[Medlin Software, Dennis]

5 minutes ago, cbslee said:

No, I have never had a client ask me about data security. When I suggest things they could change to improve their own security they just stare at me and don't say anything.

Indeed, for many, change is not inevitable, it is bad, never to be thought of.

I just had someone ask why we no longer print the full SSN on pay stubs, and no longer print it in other places not required.  Seems to be employee driven complaints, when they come across a lousy lender who believes a stub is proof of income (back to the junk mortgage days I guess).

[Sara EA]

I too am due for EA renewal next year and will pay whatever they want because I NEVER want to take that exam again.  Fortunately, my employer pays for continuing ed.  I renewed my NAEA membership this year but think I won't going forward.  It's expensive for the benefits received, which to me is pretty much the journal.  I love their journal, but their meetings where I can network with other tax pros are so far away I'd need a hotel stay.  I find their forum so-so; many posters try to be helpful but others seem bent on showing off their knowledge and putting others down.  Nothing like here, where nearly everyone freely shares, emphathizes, and truly tries to help.  No one cares to be the smartest person in the room.

Clients who do their own accounting don't realize that you may have to do hours of cleanup.  I had a client whose relative did the books, and it took me a full week to do it right.  (Dunkin' and McDonalds charges listed as "meals and entertainment"; cigarette purchases and wife's gas station fill ups under transportation, and on and on).  Tell your client no discount or price reduction until you see how long it takes you to clean up.  He might not save a dime, and it might just cost him more (especially if he uses QB online, where changing things takes a whole lot longer than original entries).

[Slippery Pencil]

On 9/2/2022 at 3:58 PM, Medlin Software said:

As an aside, do any of your clients ask about the safety of their data?

Yes, a few years ago a client asked.