Tax return Preparation Time

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#1
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In days or weeks, what is the typical turnaround time to prepare your Tax returns a) during tax season and b) the rest of the year? What do you tell your clients? How close is that to your actual timeline?

What about a) Individual (simpler) returns vs b) Business returns?

Thanks!
 

#2
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75% of my returns are finished at the interview. Normal 1040 returns usually take about an hour. Entities usually 3 hours. Of course, both have shorter and longer times depending on the factors. The returns out of season usually take much longer as they are the laggards and problem children that haven't got everything I need to complete. I prefer to complete what I can at the interview so I have the client right there to answer questions. The ones post season that I finish after the interview are a headache getting answers from clients and I spend a lot of time on the phone and email.
Jim
Pettit Financial Services
 

#3
Joan TB  
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What do you charge for those Forms 1040 that only take an hour and are finished at the interview?
 

#4
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And Jim, do you sign them that day? After the interview? Are you a sole-proprietor, or part of a firm?

Inquiring minds like mine want to know!

Thanks!
 

#5
makbo  
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KevinCPA wrote:What about a) Individual (simpler) returns vs b) Business returns?

More complex returns (ind. or entity) take longer for turn-around, but I am also sensitive to balance due vs. refund returns, since clients in the latter category are going to be less happy, the longer I take. And I have a few who always want to start their current year planning right away, so I try to get those done sooner also. When I was at H&R we completed well more than half of the returns at the desk with the client there (1-2 hours), but I do that with none of my own clients now.
 

#6
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I do virtually no "while you waits". Did when I was a Jackson Hewitt night manager and never got comfortable with someone watching my keystrokes. Also don't like someone sitting there for an hour and then me saying you owe me $XXX. Gives them time to think "She's making HOW much an hour???" They don't understand that we have overhead, continuing ed, software, etc.

As far as the time from drop off to delivery, I try to keep it less than two weeks. I also have a lot of bookkeeping clients that I go to their office. I have some tax clients that I do pick up and delivery for. I try to combine those trips
 

#7
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KevinCPA wrote:And Jim, do you sign them that day? After the interview? Are you a sole-proprietor, or part of a firm?



I am part of a firm, I guess, since 3 of my daughters are CTEC preparers (CA designation) and are all working on their EA. But, the buck stops here! And yes, I sign and deliver their copies while they are there, assuming they are done.
Jim
Pettit Financial Services
 

#8
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Joan TB wrote:What do you charge for those Forms 1040 that only take an hour and are finished at the interview?


Our base rate for "long form" (no Sched C, D or E except for minimal flow through entries) is $250.
Jim
Pettit Financial Services
 

#9
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None prepared while you wait. Our internal review processes are such that it is not practical to prepare returns while you wait. Every return, even if only one W2 is reviewed by more than one person.
Simple returns with only w2-s one week.
Simple returns with W2's and A or E: 7-10 days.
Then, returns generally run 15-45 days depending upon complexity, and how long it takes to gather the info that is not initially brought in.
We start telling clients (generally they are the same clients year to year) for info coming in starting the last week of Mar, to expect an extension.
We date all incoming data at the front door, generally prepare in date order, unless someone has special circumstances, or special due dates like 03.01 for farmers, or 03.15 for corps.
We work up most of our farmers and corps in Oct/Nov and Dec, thus we have them 90-95% complete by year end.
 

#10
CathysTaxes  
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I only two 4 returns 'while they wait'. Simple returns, same family, one woman brings hers and her daughter, and her sister brings in hers and their parents.

Everyone else, it depends on how complete their paperwork is and if I have to 'play games' with them to get the rest of their info. Two of these clients were placed on extension on 4/10 and on 4/14, I finally hear from them and told them they had to wait.
Cathy
CathysTaxes
 

#11
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In one remote location, a house which still has two prong outlets, I do not carry a printer, but since the client has Parkinson's Disease and is easily confused, I make a pdf, open the 8879 in Foxit, and have him sign the form on my computer screen, but after I have reviewed the return.
Last edited by Doctor Watson on 15-May-2014 1:28pm, edited 1 time in total.
 

#12
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My process is much like Phil Moody's. I don't prepare any "while you wait" returns. I only prepare a handful of returns that can be completed in under 2-3 hours and typically they are children of the primary client.

I use a "first-in, first-out" method of return production, making exceptions for some returns depending upon circumstances. My typical turn-around time is two to three weeks during the height of tax season. Turn-around time during off season depends upon various other deadlines.

I discuss this with potential clients up front. Occasionally I lose a potential client due to turn around time and that is fine with me.

Great topic Kevin!
 

#13
Wiles  
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Our process is similar to Phil Moody. Every tax return gets reviewed by another person. I just tell all my clients that it is a 2-3 week turn-around. A few get their returns that same week. A few get their returns 6+ weeks later. But most get it back in 2-3 weeks. I am also FIFO, but I will pick around those ugly ones, thus the 6+ weeks.

Easy returns are done by the end of the appt (but still go through review). Very complex returns will take 3-4 hours of my time, plus other staff time if there is something like a QB file that needs to have accounting done to it. My typical/average client: 45 min appt + 45-90 min add'l work by me + 10-20 minute for review process. Fee = $400 - $600.
 

#14
Joan TB  
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... but I will pick around those ugly ones..." LOL - boy do I know what you mean!
 

#15
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Wiles wrote: I am also FIFO, but I will pick around those ugly ones, thus the 6+ weeks.

Joan TB wrote:... but I will pick around those ugly ones..." LOL - boy do I know what you mean!

I second Joan's "boy to I know what you mean!"

There are a few returns that I do not process during normal tax season.

One is cancellation of debt returns that have complicated facts patterns (I put that as politely as possible).

The other is clients with large numbers of Publicly Traded Partnerships. I have a few clients that have many PTPs in their investment portfolio and between "corrected" 1099s from brokerage firms, late arriving K-1 forms, and calculating and tracking the client's basis in the PTPs these returns can consume quite a few hours (at least in my experience).

So I guess you could say I use a Modified FIFO which I refer to as MOFO. :D
 

#16
ATSMAN  
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I can do a typical 1040 (2 W2, a few 1099s with Sch A)in less than an hour if the taxpayer completes my checklist. If the client wants to wait while i prepare the return it takes a few minutes more because of all the small talk.
 


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