What should the price be? NJ S-corp preparation

"John Smith Jones" wrote

Unfortunately no one can say based on what you have presented. Keep in mind that there are no set fees, in that the fees vary by preparer and location, and unfortunately by client. No two returns are alike, so rarely will the fees be identical.

There are times when the computer data is about as worthless as can be and a ton of work must be done to get to numbers that can be used. Other times the data is mostly accurate and of value when generating the returns, with the only additional work being adjustments for depreciation, amortization, payables, receivables, inventory, etc).. Then there are times when it's "spot-on" and there are no changes to make to the data at all (not often does this happen mind you).

Large or unusual transactions, like additions/deletions to the depreciation schedules, sales of assets, etc can often tie up the hours.

You should be free to ask about the fee increase, and not to bitch about it, but to learn what you can do to make it easier for them next year. It may be something simple that you can do in advance to ease the time burden.

Not a tax person, but I can tell you that most of my friends that do tax work wouldn't touch a S-Corp and related owner returns for less than $1000. Even a small one-person entity.

if you don't mind me asking, is there a particular reason why this is? Are S-corps simply more difficult to deal with or is there another reason?

Thanks, Shhhh

"Shhhh" wrote

Corporate returns are, in general, significantly more involved than an individual return, even one with a Schedule C, E or F (the bueinss related returns).

In addition to there being just flat out more time involved, with partnerships and "S" corporation returns being pass-through entities, it's possible that the preparer liabilities also pass-through to as many shareholders as there might be. So with a four shareholder/partner "S" corporation/partnership, a preparer isn't on the hook for just the one return, but for a total of five returns (the entity return and all the shareholder/partners returns as well).

People can say what they want, but fees are based on a number of factors, time and risk being the two discussed above, and then there are the knowledge/experience factors and the remaining overhead costs to factor in. I wouldn't claim that everyone I know charges a minimum of a grand for a simplistic corporate return, but then, there are no "simple" returns anymore. I would say that the fee charged ($700 was it?) does not appear significantly out of an average range, but it is a good jump from the prior year. It's possible that teh prior year was seriously under priced, and the tax preparer is just having to make the adjustment necessary to compensate for the time, risk, knowledge and overhead expenses.

If it's a serious concern, talk to them about it. I do know there is one CPA in town that will not address his fees with the client - at all. Not everyone is like that, but remember that if you go in and complain for 30 minutes about his fees, you're burning 30 minutes of his busiest time.