Discussion:E-file requests

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Business Growth Community --> E-file requests


Natalie (talk|edits) said:

March 6, 2007
As some of you know, this is my first year e-filing. I've prepared three S-corp returns, and two of them have said "no thank you" to the e-filing option. (Yea, I know. Some of you have already filed 300 returns. I don't prepare many tax returns in my practice.) I thought people would snap this option up in a minute. How's the response for you?

Rgtaxservice (talk|edits) said:

6 March 2007
If you charge for efiling, then there is no benefit to efile a S-corp return. The main advantage of email is getting a refund quicker when coupled with direct deposit. Efile is going to have greater appeal to individuals.

Do you charge extra for it (how much) or is it free?

Daniteel (talk|edits) said:

6 March 2007
Natalie,

It seems many of my college/early 20 something clients like the e-filing method, because they get their refund quicker. The majority of my older clients prefer a paper copy to mail in. Most of them, I have at least talked into getting their refunds directly deposited into their checking/savings account. I considered that a major accomplishment. For any of my clients that owe....forget it....they mail their paper return one day before it is a due (I can't blame them, I do it, too).  :)

Natalie (talk|edits) said:

March 6, 2007
Yes, there is a $5 fee, which is the fee charged by Lacerte. I also charge for postage. But the big advantage, I thought, was not having to store the paper copies. Storage around here is so darn expensive! Your point is well taken, however.

Beengel (talk|edits) said:

March 6, 2007
I figure a $5 cost into my costs and tell them efile is included. If they do not efile, I easily spend $5 in paper, toner and assembly. But I agree, individuals are more likely.

Rgtaxservice (talk|edits) said:

6 March 2007
I charge $20-24 to efile. Most places bury into the base price. I give people the option.

Natalie (talk|edits) said:

March 6, 2007
Ah, but in Hawaii, we pay GET on our gross revenue. Any expenses that are considered $ for $ reimbursements are not subject to the tax. (And for those in Hawaii who may have a different opinion about this, remember that Lacerte already charges the tax preparer the retail tax rate on their fees. The state gets its 4.5% from them.)

Stone0772 (talk|edits) said:

6 March 2007
Interesting, I raised all my prices a few years ago to include efiling at a $50.00 mark up per return. That is included in my base price. Now I charge an additional $50 to cover the cost of printing and mailing a paper return. I do send paper return using certified mail, return receipt required and use a tracking system.

Extra revenue opportunity.

Rgtaxservice (talk|edits) said:

6 March 2007
Natalie - Still, you're not taxes at 100%. If you can add more money to your gross it's not a bad thing.

Why is it that everyone wants to make money until they have to pay taxes...then they want to make less.

Make more money. You'll pay more taxes, but you'll still have more left.

Inagpurwala (talk|edits) said:

6 March 2007
I do not charge for e-file option (of course burried in the fee $5.00). Mine are mostly individuals. All of them take this option.

IshaqInagpurwala 15:51, 6 March 2007 (CST)

Natalie (talk|edits) said:

March 6, 2007
Rg, on Oahu (Hawaii) we pay 4.5% on our gross revenue. Here's an example:

My billing

Tax prep fees $1,000

E-file fees 25

Total billed $1,025

Hawai GET I pay $ 45

My net $ 980


E-file fee included in prep. fee

Tax prep fees $1,025

E-file fees 0

Total billed $1,025

Hawai GET I pay $ 46.12

My net $ 978.88


The GET is probably one of the most misunderstood taxes out there, but I think you can see RG that it does make a difference whether the fee is included or separately stated. (I use the term "net" very loosely here.)

Bottom Line (talk|edits) said:

9 March 2007
Most of my clients under age 60 or so like e-filing. I have several elderly clients and it's just a little too new for them.

JR1 (talk|edits) said:

March 9, 2007
So Natalie,

Tax Prep 25 Efile 1000

How does that work? :)

Deback (talk|edits) said:

March 9, 2007
Beginning with 2003 returns, when Michigan required preparers (who prepare over 200 returns) to efile all returns, I was very apprehensive about telling all of my clients that I was required to efile their returns. Well, it actually went very smoothly, and I had very few complaints in early 2004. Since that year, nobody has questioned it, and most of them greatly prefer being able to pick up their copies and not have to mail any returns in. 99.5% of my clients accepted the fact when I told them I was required to efile their returns.

I absolutely love NOT having to print the original copies to be sent in the mail. I've saved so much time in the last four tax seasons--not to mention much less copy paper, staples, paper clips, envelopes, postage when mailing copies to clients, wear and tear on my printer, electric stapler, and middle finger by not having to print addresses on over 1,500 envelopes to the IRS and State, not having to staple W-2s to over 1,500 original returns, and not having to sign over 1,500 original returns each tax season. I would never want to go back to the old method.

The best thing you can do is tell your clients you are efiling all returns--and don't charge extra for that service. At least, don't tell them you're charging extra for efiling. You'll never regret making that change and most, if not all, of your clients will accept the change and prefer it over the old method. And ask all of your clients if they want direct deposit. The majority will say yes and will love you when they get their refunds within two weeks or less.

Buy the unlimited efiling package (it's free to efile all Federal and State returns, if you buy the $999 ProSeries package, except for a $3 fee to efile 1120, 1120-s, and 1065 forms).

Death&Taxes (talk|edits) said:

9 March 2007
Paper and postage savings will allow you to efile without charge. The only negative I find is returns actually stay here longer while I wait for the 8879s but that is a minor quibble. They used to go out the door and that was it. Another nice thing: once gone to IRS by wire, there can be no late arrgro from people finding 'other deductions' or 'a missing piece of income.'

Natalie (talk|edits) said:

March 10, 2007
Well, JR, nice try, but Hawaii gets us there. If the actual e-filing cost is $25 and I charge $1,000, well then I pay GET on the $1,000. The reason the $25 is not taxable is that it is a $ for $ reimbursement (no markup).

D&T, I charge for postage. I need to review my billing structure. I struggle with the issue of charging for extra things: postage, e-file fee, computer fee ($41 per business return), etc. vs including them in my fees. The problem most of the time is that I under-estimate my time, so my fee doesn't even cover my time. I increased some fees 12 - 15% this year.

Taxea (talk|edits) said:

10 March 2007
Natalie and all...from Hawaii....Last year I told my clients that if the return qualified for elf it would be elf'd...didn't give them a choice. I don't charge for efiling because only costs me $5 and the convenience is worth it to me. I also Preparer Pin file all returns.

The IRS allows maintaining records on CD..so storage is not a problem or large cost. If a client wants their return printed and mailed I explain that the IRS is more likely to take a closer look at the return because elf'd returns have much fewer errors. Natalie...do you charge the GET at 5.712? I do and it is in addition to the prep fee. Don't you just expense the Lacerte total including the GET they charged? taxea

Natalie (talk|edits) said:

March 10, 2007
Taxea, I charge GET at 4.712% (which is what I think you meant). I was planning on billing for the e-filing fee which I guess will be $5.22 or $5.23. I just had another S-corp client tell me today that she "had to have paper."

Taxea (talk|edits) said:

10 March 2007
I charge client pay per return fee as a document fee. The only paper I print is a copy of the "filed copy" of the return. I stamp it Client Copy Do Not File on both the front page and where the client would sign it and I don't sign the client's copy of the return.

Yes 4.712 is what I meant. Did you find my answer to your coffee question. My email is taxea@hawaii.rr.com. In case you didn't I'm in Wahiawa Heights. Where are you? Use my personal email with your answer. taxea

To join in on this discussion, you must first log in.
Personal tools