Tax preparers sure have their work cut out for them. The thing that most clients don’t realize is just how complex the tax code really is. When they balk at your fees, you may need to remind them, there are over 4 million words in the U.S. tax code, not to mention there have been about 5,000 changes to the tax code since 2001.
You are a professional that is why they come to you. Your fees reflect your knowledge to get them the maximum deductions and credits they are eligible for. You also need to be able to pay for office space, equipment, utilities, professional tax software and much more than they may realize.
A professional’s time is valuable, but just how valuable? Well, the National Society of Accountants conducted a survey to collect fee information across the U.S. This information includes tax and accountings firms with an average minimum of 27 years of experience.
Listed here are the average fees by region for an itemized form 1040 with schedule A and a state tax return.
- New England (CT, ME, MA, NH, RI, VT) – $246
- Middle Atlantic (NJ, NY, PA) – $314
- South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) – $268
- East South Central (AL, KY, MS, TN) – $262
- West South Central (AR, LA, OK, TX) – $205
- East North Central (IL, IN, MI, OH, WI) – $240
- West North Central (IA, KS, MN, MO, NE, ND, SD) – $198
- Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) – $256
- Pacific (AK, CA, HI, OR, WA) – $348
Overall national averages:
- Itemized 1040 with Schedule A + State Return – $273
- Form 1040 + State Return – $159
- Itemized 1040 with Schedule C Business Income + State Return $447
Overall national averages by form:
- Federal Form 940 (federal unemployment) $68
- Federal Form 1065 (partnership) $634
- Federal Form 1040 (fiduciary) $457
- Federal Form 1120S (S corporation) $778
- Federal Form 1120 (corporation) $817
- Federal Form 990 (tax-exempt) $688
Some preparers charge additional fees based on certain services:
- Taxpayer disorganization or incomplete files – $114
- Extensions – $42
- Expedite a return – $88
- Tardiness providing information – $93
- IRS Audit assistance – $144/hour
Fees for 2013 returns were 4.6% lower, and 2012 were down 11%. This gives you something to think about for your 2015 fee schedule.
Would it be practical for you to add a corporate package to your current professional tax software package? It could be profitable. If you are interested, we have a corporate add on package for just $200 that could help build your business. We love questions, so ask away
UltimateTax Service, Inc. is a professional tax software provider. We provide this information as a service to our clients and friends. The information we post is for your viewing and knowledge pleasure. We take all information we post seriously and stand behind what we post. However, the information we post is not meant to be used as your sole position in tax cases.