Discussion:CHARGE CLIENTS FOR AMENDING RETURNS?
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> CHARGE CLIENTS FOR AMENDING RETURNS?
Discussion Forum Index --> Tax Questions --> CHARGE CLIENTS FOR AMENDING RETURNS?
| 10 March 2009 | |
| I have a lot of clients who have just received corrected 1099s, after the filing of their returns. Most of the time, the changes are minimal and result in no bottom line tax difference, so if the clients don't want to amend, there's no real damage.
My question concerns the returns that DO result in a tax change. When the amendment is required due to no fault of the taxpreparer, do you charge your client for preparing the amended return, or just "eat the cost" and do it to enhance the client's goodwill? | |
IDrinkYour Milkshake (talk|edits) said: | 10 March 2009 |
| Depends on the client. Once a year client, I'll charge them. They can cry to the 1099 issuer for a refund. | |
Davidrayjr (talk|edits) said: | 10 March 2009 |
| Depends for me as well. | |
| 10 March 2009 | |
| I notified my returning clients that 1099s would be late this year. As a result, I am hoping not to have to amended. Charging depends on the client. | |
| 10 March 2009 | |
| It depends on the client, some I charge, some I don't. It all works out in the end. | |
Rgtaxservice (talk|edits) said: | 10 March 2009 |
| What even happened to the idea of a Practice Management Forum? There was talk of it earlier in the season. | |
| 10 March 2009 | |
| Can we add a forum for those who suffer from Obsessive-compulsive Disorder as well? | |
Rgtaxservice (talk|edits) said: | 10 March 2009 |
| Crow, it's not OCD - it's CDO.
The letters have to be in alphabetical order. | |
| 10 March 2009 | |
| If it is my error, heaven forbid, I don't charge for the amended. My checklist for the client is very detailed and they should know where they received income from so if they fail to wait until they get the 1099 before having their taxes done, they get a bill for the amended.
I should also say that I detail the return itself. If they had the 1099 the year before I call them before I complete the return to be sure they aren't expecting one in the current year. taxea | |
Death&Taxes (talk|edits) said: | 10 March 2009 |
| I suggest that if I amend in May, the charge will be nominal or nothing (depends on quality of client) but if client insists it be done now, I have a 'restocking' charge. Some clients will say, 'all you have to do is hit a few keys on the computer' but I reply, 'but my wife has to spend at least 30 minutes to process the thing....30 minutes where she could be getting out first returns for others.' I emphasize this thinking even more when the client calls and still has the return in hand, unfiled. | |
| 10 March 2009 | |
| why is there even a discussion? I mean, we all talk about time is money, well, this stuff takes time. I can understand if it's a long time client who pays well, but really, even they should be charged a nominal fee.
One thing I can say is that we do know that the 1099's have been followed up with corrected versions the past few years. this is why the IRS gave additional time this year to send out. If a client has a 1099 that might be amended, simple solution is to hold the return until final one is received or have client call their brokerage to find out if one is coming. I offer to call for them but they are informed it will cost them. some say do it, some say they will call. I am trying not to baby clients unless they are willing to pay me for my babysitting service. On another note, I would have clients calling during tax season for copies of their return. They get a $25 fee for this that is then deducted off their fee if they return. | |
Scottycoyote (talk|edits) said: | 10 March 2009 |
| i always tell my clients.......my mistake i fix for free, anybody elses mistake i fix for a small charge lol. | |
| 10 March 2009 | |
| I've just finished amending returns 2005 and 2006 which I did not prepare. It's the same as preparing two new returns and sometimes more because you're going in behind the original preparer. I charge for amendments because you usually can't get away without spending more time than you realize you're going to. | |
| 10 March 2009 | |
| amending someone else's tax returns are often VERY time consuming, especially self-prepared returns. I like advice I saw someone else give -- give a range quote of what it's going to take and PROMISE to call them if it looks like you are going to go over the estimated time. Communication is the key. | |
| March 10, 2009 | |
| Most amended returns take less than five minutes, so I rarely charge clients to amend their returns. It's usually not their fault or my fault, and I believe they're more apt to return next year if I don't charge them an additional fee to amend their return. If the amendment is complex, then I might charge a small fee to do the amended return. | |
| March 10, 2009 | |
| However, as Illini stated, I'll charge when amending returns prepared by someone else. | |
