Discussion:1041 Tax Preparation Charge
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Discussion Forum Index --> Basic Tax Questions --> 1041 Tax Preparation Charge
Discussion Forum Index --> Tax Questions --> 1041 Tax Preparation Charge
Dsocpa@aol.com (talk|edits) said: | 19 September 2008 |
| Trying to determine a reasonable fee for a final 1041 with 45 beneficiaries. This is the final return and all assets have been converted to cash. I'm located in MD, however, the deceased was a resident for WV so I'll be filing the state Fiducary Return as well. Any guidance is greatly appreciated.
Thanks, Donya Oneto, CPA dsocpa@aol.com | |
| 19 September 2008 | |
| how much work and what did you charge for the prior returns? | |
| 19 September 2008 | |
| 'converted to cash' - come on, you know you need to report each sale transaction, you want us to give a price quote and you won't tell us how many Sch D transactions? | |
Dsocpa@aol.com (talk|edits) said: | 20 September 2008 |
| All assets were either Savings Bonds, Money Markets or CD's. Bonds and CD's were liquidated and the funds deposited in the money market accounts. 2 pieces of property were sold (one principal residence and adjacent tract of land) - the property had been in the family since the early 1900's. Property sale proceeds have also been placed in the money market accounts. Deceased left no will, no heirs, only beneficiary was his mother who died in 1975. 1040 and 1041 returns have been filed through the FYE 08/31/07. Heir search determined there are 45 beneficiaries, 5 paternal and 40 maternal. Estate assets (currently all cash) will be divided in accordance with a court order to the named heirs. Attorney for the Estate wants an estimate on preparing the final 1041 with the 45 K-1's. I charged by the hour for the final 1040 and 1041 - which involved bookkeeping fees as the deceased had no discernable recordkeeping system. Many of the bonds were found throughout the house used as bookmarks - bank statements from bank located in different parts of the country were also found throughout the house. | |
| 20 September 2008 | |
| 45 heirs? What were these people, rabbits? Start at a thousand an heir, and be willing to go down no more than 15%. Disclaimer: this is likely influenced by the New York fees I have been told about around here, which made me feel awful insignificant and unworthy.
Taking my slide rule out, and applying a geographic algorithm accounting for how the winds are blowing out of Papau New Guinea, I'd say a more reasonable fee would be $5,550.50, plus postage and handling (this will allow for a good Christmas and a Happy New year, but no more). | |
Dsocpa@aol.com (talk|edits) said: | 20 September 2008 |
| Thanks CrowJD, you've made my night!! | |
| 20 September 2008 | |
| Seriously Dso, I would tell the lawyer that you have never done one with 45 benes., and it could take more time because of that, but perhaps it will not (i.e. perhaps that is not the determinative issue), and therefore the only fair thing for you to quote is your hourly fee. | |
| 20 September 2008 | |
| I agree with CrowJD - if you quote an hourly fee, then the client may be highly motivated to be helpful, such as getting you a really accurate list of the beneficiaries with addresses and social security numbers. That task alone could take you many many hours, especially if the client is less than cooperative. | |
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