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Posted

Where is the reg that prohibits us from charging a separate fee for e-filing?  I cannot locate it.

 

Is there one?  I don't think there is anything prohibiting a separate charge for e-filing. Some states do have laws that say preparers can't charge for bank products and fee collect though. Is it possible that is what you are remembering from a discussion we had on this forum late last year?

  • Like 1
Posted

I think we cannot charge extra for direct deposit. I hope we can charge for e-filing as I have always charged. I charge by the form and form 8879 is a measly $5. Hasn't changed in ten years.

Posted

NOTE: The IRS does not charge a fee for e-file. However, an electronic return transmitter offering this service to taxpayers may charge a fee for transmission. Check out the Free File Home or IRS e-file Partners web page to learn about free and low cost e-file opportunities. If you have additional questions, you can also contact IRS toll-free customer service at 1-800-829-1040.

Posted

Jack, I remember hearing what you're saying long ago, maybe during HRB training.  Could it be in Circular 230?  I think you're right, but don't know where to direct you.  Do post when you find it, whichever way it goes.

Posted

I seem to remember something on this as well. However, I do remember the years when HRB and others charged a fee for electronic filing. I never have. I enrolled for the bank products again this year and noticed that Santa Barbara has a fixed "transmitter" fee of 19.95. Hmmm it would seem this would fall under the same category. As Lion EA said, let us know what you find Jack.

Posted

The only thing that I remember about fees from Circ. 230 is that we cannot charge a contingent fee for return preparation, and we can't charge an unconscionable fee.  We have charged a fee for e-filing when we used a software that charged us a fee, but otherwise I think it is cheaper for us to e-file than paper file so I would prefer to charge a fee for paper filing.

  • Like 1
Posted

When e-filing first started, I had to pay a fee (I believe $10 for Fed and $5 for state) to Nelco to file through them.  I was not able to get anyone to opt for that extra fee.  I remember filing filing myself and immediate family electronically; just so I could keep my EFIN.  Things have changed dramatically and I agree with the posters that say that it costs us much less to e-file than to file a paper return.  That would be in both time and resources.  I never charge for e-filing.

Posted

irs allows it but at least here in NY they specifically ban the separate charge.  When it first came out and was voluntary NY didn't want anything that would discourage a taxpayer from efiling.  I added 50-75 to my fees since I now have to clear stupid diagnostics, send a draft then eventually the final return to client, chase them for signatures,  chase them for signatures,  chase them for signatures,  chase them for signatures, etc.  And since they email or fax the authorization, I have to call and remind them that my invoice is in the folder. 

  • Like 4
Posted

I don't recall that we cannot charge. However you may want to check your state. I think some state considers as taxable (sales Tax..?), There may be sales tax you may have to collect and pass it on to the state.

Posted

... I now have to clear stupid diagnostics, send a draft then eventually the final return to client, chase them for signatures,  chase them for signatures,  chase them for signatures,  chase them for signatures, etc.  And since they email or fax the authorization, I have to call and remind them that my invoice is in the folder. 

 

That's right, e-filing is not all strippers and burritos despite the talking points.  And don't forget the chasing for signatures.

  • Like 2
Posted

We don't charge. Efiling saves us time. And paper filing is what we were saving the client from doing in the first place, hence our work fee. So you end up paying the same regardless of how we file you. Nobody's complained about that yet.

Posted

We don't charge. Efiling saves us time. And paper filing is what we were saving the client from doing in the first place, hence our work fee. So you end up paying the same regardless of how we file you. Nobody's complained about that yet.

Not exactly true, efiling saves my secretaries time of collating that one extra copy but cost more of my time which is billed at a much higher rate [much to her disappointment].

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