Do you charge for this !!!

[BTS]

I should point out (important) that I dont charge an hourly rate.  After 45 years its more a flat rate.  Granted there are partnerships and trusts which are time based.  But personal returns are flat rate (depending on forms used).  Its worked well all these years.  

Question is, do you charge when clients call and ask tax related questions during off season.   Meaning you have to research and do some calculations for them ?  In my case,  I may spend 15 minutes looking up something or calculating stuff.  Or if its a simple straight forward answer (5 minute call), I never charge.  If you do charge, is there a time spent that triggers a charge ?  I may get 2 of those a week during off season.  So its really not that much time.  On the other hand, what about during tax season ?  Do you charge for clients asking questions before their appointment or they drop off ?  Those I get many.   I can see not charging while you work on their taxes and calling them with questions.  Guess I need to quit being nice and start billing all calls on an hourly rate.  

[Margaret CPA in OH]

I charge an hourly rate but include that time, more or less, when questions are during the season as they normally relate to the returns.  During the year, it depends.  For short calls or rather simple things, no charge.  I would rather folks keep in touch and ask 'permission' rather than beg 'forgiveness' which can be costly.

[Lee B]

I only charge extra when the client's question requires research and a written response.

[BTS]

I agree, I just cant justify a charge for a 5 minute call.  If its related to their current tax return, I wouldn't charge.  But 90% of those few calls I get during off season are related to financial decisions that would effect the following year.  Maybe I should just make a client file notation and add it to the following years total.  But there are those who call many times before they bring stuff in and those can be time consuming.  Guess I need to do a hybrid billing.  Bill for questions before they drop off (ones that consume a lot of time). 

[Lee B]

14 minutes ago, BTS said:

I agree, I just cant justify a charge for a 5 minute call.  If its related to their current tax return, I wouldn't charge.  But 90% of those few calls I get during off season are related to financial decisions that would effect the following year.  Maybe I should just make a client file notation and add it to the following years total.  But there are those who call many times before they bring stuff in and those can be time consuming.  Guess I need to do a hybrid billing.  Bill for questions before they drop off (ones that consume a lot of time). 

I just bump up my tax prep fee when I have clients that do that.

If their questions would require a tax projection for the coming year , I give them a quote for in advance.

[Sara EA]

We don't usually charge for answering questions unless the response takes more than a half hour.  It's difficult to set a hard and fast rule.  One client has a $2k return and I don't charge him for responses that take time.  Other clients are needy and contact me several times throughout the year.  I bump up their tax prep fees.

Some attorneys are now charging their time in 5-minute increments.  (And 6 minutes = 10 minutes billing.) How could anyone keep such exact track of their time and still get any work done?  I saw an estate bill once where the attorney charged for 10 minutes opening mail.  It probably took him two minutes to track and record that blip of time in his day.

[jklcpa]

The firms I worked for kept time in 6 min 10ths of an hour because some things don't take 15 minutes, and when that quarter hr was tried the time charged to clients was more than actual.

I still use 6 min 10ths of an hour, and so do a few others I know of.

[mcb39]

I also charge flat fees for prep and base them on the circumstances.  No complaints so far.  I do not charge for calls and questions throughout the year.  I tell them that I am available for them all year and not just during tax season.  I would rather get a heads up than a surprise later.  If paperwork is involved, there is a small fee to cover costs.

[Corduroy Frog]

I encourage questions in the off-season, because it usually involves selling something.  I would rather inform them than to deal with a surprise at filing time.  I will not charge unless research is necessary, and I don't go through the misery of collecting until the next tax season.  I put a reminder in their file so I won't forget.

Almost all those calls involve a taxpayer selling something.  And it's amazing how many people believe if they replace the property with more expensive property, they are off the hook.   That treatment has been gone for decades.