FLORIDA PREPARERS

[DEO]

I am a NY preparer. Approx how much would you charge for the following:

Business write up approx 300 chqs

S corp Return

PR-3 employees

monthly PR

qtrly 941 and FL ui return

Annual W'2s etc

Personal Return

1040

Sch A

3 Sch E part 1

1 Sch E Part 2

Other Misc like Sch B. IRA etc

I just need an approx, because I don't want to over charge. Rate would differ from NY.

Thanks for your response.

Deo

[jainen]

>>Rate would differ from NY<<

Why should your rates be different from your own rates? If the client wants a NY preparer, they would expect NY prices. Not that there is a standard price anyway -- your rates are an individual mix of your own business practices, your skills, your local market, etc. The location of the taxpayer is not relevant.

[TAXBILLY]

I have the reverse situation. Since I'm located in Florida I rarely lose my clients who move to another state because they know my rate will be cheaper than if they have it done locally.

taxbilly

[Evan S. Golar]

I don't believe that public disclosure of dollar amounts of fees are an accepted business practice.

I really suggest the Webmaster check this out before anyone answers. It might be against the Federal Trade Commission policy or other such regulatory policy. It MIGHT be construed as price fixing.

[redux]

I don't believe that public disclosure of dollar amounts of fees are an accepted business practice.

I really suggest the Webmaster check this out before anyone answers. It might be against the Federal Trade Commission policy or other such regulatory policy. It MIGHT be construed as price fixing.

Evan:

Your concerns may be valid, however this site is not affiliated with any particular organization or any specific profession. That said, we realize that many members are in the tax prep profession, however, that is not a requisite to becoming a member here. An unorganized group of people discussing any subject doesn't seem to be grounds to suspect a conspiracy to set and control prices.

Moreover, while I'm sure the "webmaster" can speak for himself, I wonder if it is within his time management constraints to do the research you suggest. If you have strong feelings about the FTC, and the possible illegality of what we do here, perhaps you could do the research and let us know.

[kcjenkins]

As one of the Moderators here, I will tell you that I have no problem at all with the discussion of rates. I doubt that they serve much purpose, because each client is different, and any experienced preparer will charge according to his or her own system, considering not only the forms, what local rates may be, but also the PITA factor of each client, etc. But it is hardly 'price-fixing' for a group of unaffiliated people to merely discuss how they may charge. Since any corp return is going to depend in large part on the quality of the bookkeeping of the business, it is really nutty, IMHO, to even try to have a 'standard' price for such forms. But, hey, if you want to do it, it's your pocketbook, and your time, so it's OK by me. One thing is for sure, that is NOT what price-fixing means.

[Evan S. Golar]

But it is hardly 'price-fixing' for a group of unaffiliated people to merely discuss how they may charge.

There's a difference between discussing HOW charges are based, versus discussing actual dollar amounts for specific services.

The original post asked for dollar amounts for specific services.

Hey-it's your board -do what you want.

[jainen]

>>The original post asked for dollar amounts for specific services.<<

When we specifically share rates or elements of rates (such as costs) for the purpose of setting fees, that is indeed the very definition of price-fixing. It is not a big problem for the economy, and as our moderator points out it is not very effective anyway, because our industry has so many small and independent practitioners. But it is unethical and contributes to a poor public opinion of our profession.

[Evan S. Golar]

Thank you jainen-that was exactly the point I was trying to make.

[SCL]

>>The original post asked for dollar amounts for specific services.<<

When we specifically share rates or elements of rates (such as costs) for the purpose of setting fees, that is indeed the very definition of price-fixing. It is not a big problem for the economy, and as our moderator points out it is not very effective anyway, because our industry has so many small and independent practitioners. But it is unethical and contributes to a poor public opinion of our profession.

a discussion of rates could be a part of price fixing, but it is certainly not 'the very definition of price fixing'. the major part of price fixing involves a monopoly or oligopoly of a market - something that is not even remotely evident in the national income tax prep business.

[jainen]

>>the major part of price fixing involves a monopoly or oligopoly of a market<<

Oh no, that's begging the question. Price-fixing reduces competition, not the other way 'round. Where there is already a monopoly there is no need for a price-fixing agreement between competitors.

Here's a nice short definition: http://en.wikipedia.org/wiki/Price_fixing. See where it says, "The price-fixing laws apply to industries and professionals, for-profit concerns and non-profits and charities"? It also draws a useful distinction between price-fixing, which is us communicating with each other, and price leadership, which is us stealing H&R Block's fee schedule. The latter is perfectly legal and ethical.

[SCL]

'begging the question?' - nuh uhh.

you're begging the question by defining price fixing as a 'discussion' of prices without acknowledging that it does not effect the prices of a multilayered national tax prep market (not a monopoly or even close to an OLIGOPOLY).

[kcjenkins]

I agree, SCL, the sort of discussion we have here, which I have never seen [even in the old Community] be other than very general, clearly does not raise to the level of price-fixing. Keep in mind, also, that merely discussing in general terms your 'average' charge for a particular form or type of return is very different than working together to agree to charge that amount across a group or an area, as is done in price-fixing. Talking about what WE consider a fair price for X is very different than colluding to set a price for it.

Frankly, I can not imagine any way to set up 'standard' prices, anyway, when both the complexity of the individual client's return, and the level of expertise and experience of the preparers varies so widely. Then there is the variance in local competition, cost of living, type of practice, etc....