Does everyone charge for an amendment in this case...

Client of 10 years.

MFJ, W2s, 1099r, one rental, itemizes state (simple - and not federal).

I get about $400 for this return.

Takes me about 15 minutes to prepare and 30 to deliver (mostly to shoot the breeze).

Just now his company gives him a corrected w2.

Does everyone charge a fee in this spot for the amendment?

How much?

In this case, and if it is a good client, I would not unless I incur out-of-pocket expenses, and then I would only bill the client for that amount.

If the amended return is more involved, yes, I charge based on time (and disregard my minimum fee).

If he needs/wants it right away, I'd charge him. If he's willing to let me set it off to the side until my schedule otherwise allows, I probably wouldn't.

My charge would likely be $350ish.

$400 fee for a 10 year client with an easy return? It would be extraordinary for me to charge in this case.

HI is expensive! If that was my client and was paying that rate I would give him a free amendment.

A corrected W-2 after 4/15? Yikes...

Client of 10 years.

I get about $400 for this return.

Takes me about 15 minutes to prepare and 30 to deliver (mostly to shoot the breeze).

If it was me I'd probably do the client a favor and not charge...but I'd make him aware of the fact that I normally charge in this situation and this favor is the exception, not the rule, as he's been a great client and I value the relationship and appreciate him.

HI is expensive! If that was my client and was paying that rate I would give him a free amendment.

For a 1040 with state, Sch A, and Sch E for one rental? I probably would be charging materially higher than $400 and would think that fee is low for Hawaii...

I assumed the fee is low because of the 10 year relationship and (it appears) the client provides very clean and ready to go financials.

Fees are relative I suppose. I wouldn't touch the original return for $400.
I would charge to amend the return. Depending on what changed on the W-2, we might have the discussion about whether filing an amendment is worthwhile - especially if it is something IRS may catch and correct on their own.

Prepare Paper 1040X - send to client to review/approve - sign signature pages - (Federal & State) get them back -
assemble returns, 1040x copy to state amended return - send certified mail, file return receipt - track refunds or payments.
Year I would charge - and 1st inform client of what's necessary.

What was wrong with the W-2 that it had to be amended? Normally as a rule of thumb we are charging for an amended return if it is not our fault. If it was something major (ie Box 1 Federal taxable was the same as Box 5 Medicare wages even though employee contributed $14,000 to the 401k) and we picked up on it, I'd charge premium dollars. Something minor that barely impacted total taxes (changed state allocation of wages) then I would probably charge a token fee of say $175.

Also, if it is a wealthy client I'd be more apt to charge then if it was someone that is struggling. Lots of factors in every case.

Prepare Paper 1040X - send to client to review/approve - sign signature pages - (Federal & State) get them back -
assemble returns, 1040x copy to state amended return - send certified mail, file return receipt - track refunds or payments.
Year I would charge - and 1st inform client of what's necessary.

"Yes" I would charge - unless it was my fault that I overlooked a W2 that was included in the tax docs given to me -
if its his fault - sure charge or increase the annual fee - since the IRS doesn't allow e-filed amended returns - and the state's amended returns must include a paper copy of the federal and if the state amended is a refund - many times the state will not process the refund - until they have a copy of the IRS account transcript proving the IRS refund.
All of this amounts to alot of work.

Thanks for the discussion.

FYI the correction is to add about $800 of taxable wages. So I will provide the amendments and he will mail them in with a check. We do offer regular mail postage only which is about $4 federal and state.

He already said, "no rush - when you get to it".

Regarding the fee - this is a client who fills out the organizers I give him for the rental expenses, charity, health, etc.

No statements or receipts. He does the work on all of that.

Another option is to just wait for the IRS to send a notice for the difference and pay the tax. Any penalties will certainly be less than what you'd charge for the amendment. Set a reminder for August to follow up with him to determine it's been resolved.

That's what I'd recommend to the client for $800 addl income.

Just put yourself in the client's place and think how you want to be treated after being a client for 10 years without any issues. There is your answer!

Just put yourself in the client's place and think how you want to be treated after being a client for 10 years without any issues. There is your answer!

I don't know of a CPA in the Wash DC area who works for free, anyone.
If you are in a rural area and charge $20 per/hr - then I'd understand.

I don't know of a CPA in the Wash DC area who works for free, anyone.
If you are in a rural area and charge $20 per/hr - then I'd understand.

I think that may be true in larger metros. But in rural or semi-urban areas with small population, people expect certain "favors" and not nickle and dime them for every call they make to you.

A lot of my newer clients complained that they were not treated with respect by the previous CPA firm, they were just a "customer" and they hated the nickle and dime bill they got each year if they asked a tax question or needed some fixing of a prior return etc.

Does that mean you do a 1040X free all the time? Absolutely NOT but use your business judgement.

Just put yourself in the client's place and think how you want to be treated after being a client for 10 years without any issues. There is your answer!

I live in a small town (a very wealthy one, though). I do not expect my lawyer(s) to not bill me if I ask a question, especially one that requires greater effort on his part than "yes" or "no" based on existing knowledge. He occasionally throws me a bone but I never expect it. Nearly all of my clients are the same way, though I also bill sufficient fees for other services that I can afford and am willing to throw some "free" time their way.

Yes, it is always a matter of professional judgment. I think long term with clients (particularly small businesses with significant growth potential), so I avoid billing them for every minute like most other firms do. But, that is still not good enough for some clients, and so eventually they end up getting the boot or moving on at their own will.

Clients and other CPAs would hate to know much I make based on how little I actually work (never exceeding 40 hours, even in "tax season," average week is realistically 25-30 hours with a bunch of wasted time in the mix). There are many factors at play; I become friends with some of my clients, and accordingly, give them a bit more leeway but never too much to allow them to expect things except a high level of personalized service and responsiveness. I also tend to establish contract fees that end up being favorable for both parties--some months I do nothing and still get paid, others require a bit more work. So yes, I can absolutely afford to give some time away, but I also keep it within reason so it is not abused.

When I was in my early 20s a old wiser successful man told me that you will make about the same average income as your clients that you choose to do business with. He was 100% correct. May his soul RIP!

I take it case by case. Client received letter from Illinois Department of Revenue concerning the credit for property taxes..PIN number is required. I entered it. Called client it seems her property used to be in an incorporated area and unincorporated with two PIN numbers. Now her whole property is incorporated but still two PINs. She offered to pay, but I didn't accept. I told her I should have asked for the property tax bill instead of taking the amount on her spreadsheet. The real reason is about ten years ago I really screwed up their return. I paid the penalty, interest and comped the return. They still are with me so they get special treatment.