How do you charge for copies???

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#1
FLAcct  
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I recently received a subpoena for 18 years of records for an individual client and s corp client. This will require a lot of time to get the old files from storage, remove the requested documents out of the files, have my bookkeeper make all of the copies, put all of the documents back into the files and take the files back to storage. I plan on charging the usual rate for my bookkeeper to perform all of these tasks, but I'm wondering if there should also be a charge for the paper, toner and copy machine wear and tear for the copies. How would you or do you charge for copies???
 

#2
Wiles  
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Yikes! Too bad you retain records this long.

Do you have a maintenance contract on your copier? Can you calculate your true out-of-pocket cost for this?
 

#3
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I had a similar request a couple of years ago from someone's lawyer. He hadn't actually been my client for a number of years and in the end, I didn't really have much left. But when I approached the lawyer for payment, they indicated they felt no obligation to pay for the copies at all and the subpoena required that I respond. Many years ago I was involved with an IRS criminal investigation with boxes and boxes of stuff requested. I told the agent involved that I didn't have the ability to copy all of that, we agreed that I would drop off the boxes to Kinko's, who copied it all and put it back together, the bill was paid by IRS I believe, or possibly somebody's lawyer, someone other than me in any event.

When a client asks for copies, the first time around I usually just provide them, if they can't get their act together enough to keep a set for themselves, and keep asking, which a couple of people have done, the bill is exponentially higher until they get the point. Sometimes they get angry that they have to pay so much, but, a little planning goes a long way.
 

#4
FLAcct  
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In this case the letter that came with the subpoena states that I should submit an invoice for any copying charges, but if the invoice is expected to be more than $100 I should call them before making any copies. Ha! Just digging the documents out of storage and putting them back will cost more than $100. I'd like to see an attorney's office make all of these copies for less than $100.
 

#5
Scogden  
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You should call Kinko's or Office Depot (or a few to compare) and get the market rate for per page copies. Then I'd adjust for the fact your bookkeeper likely makes more per hour than the Office Depot employee, plus add in the extra time for digging out the files, work up the quote and send it in.
 

#6
SaraEA  
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Read Circular 230, IRC Sections 7216 and 6713 before you hand confidential taxpayer info to Kinko's or Office Depot. You just can't do it. You can, however, cart the docs to the attorney to make the copies. He or she also is beholden to Circular 230 and the IRC.
 

#7
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SaraEA wrote:Read Circular 230, IRC Sections 7216 and 6713 before you hand confidential taxpayer info to Kinko's or Office Depot. You just can't do it. You can, however, cart the docs to the attorney to make the copies. He or she also is beholden to Circular 230 and the IRC.

The way I read the suggestion wasn't to have Kinko's, etc. do the work, but just use them to estimate fair pricing.
 

#8
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I don't charge for digital copies of anything.

I use the IRS' own FOIA request guidelines if anyone wants to have hard copies of something, which is rare. Obviously no one is going to scream "unethical!" if I am charging the same rate as the IRS.

http://www.irs.gov/pub/irs-utl/irs_foia_guide.pdf scroll to the last page, all the charges are there. I use the guidelines for commercial requesters, with a $35 minimum.

For those of you who don't want to look at the PDF, it's:

Copying: $.20 per page.
Labor charges are $17 an hour (about what you would pay a staff member to do it, I guess).
 

#9
Coddington  
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SaraEA wrote:Read Circular 230, IRC Sections 7216 and 6713 before you hand confidential taxpayer info to Kinko's or Office Depot. You just can't do it. You can, however, cart the docs to the attorney to make the copies. He or she also is beholden to Circular 230 and the IRC.


Unless they've submitted a POA to the IRS or otherwise practiced within the meaning of Circular 230, ordinary attorneys are not bound by Circular 230. They do have their own ethical rules, which tend to be more stringent.
-Brian

Director of Tax Accounting Methods & Credits
SourceAdvisors.com

Opinions my own.
 

#10
kathyt  
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In December (2013) I was given a subpoena for a client in a nasty divorce. I kept the husband as a client (we do his bookkeeping for several businesses they own) and the wife went elsewhere, the wife's attorney sent me a subpoena for all tax returns, records, bank statements, cancelled checks, check stubs, receipts.... for the last 5 years. We had TWO days to get the records together & copied. Normally I never keep stuff like that, but they just had not picked it up in a while, so I had a lot! The total came to 5,610 pages.

So I called an attorney friend and asked what the going rate is, they said between 15 to 25 cents a page; I opted for the higher amount of 25cents because the attorney really ticked me off with that, it was a ridiculous amount of records they asked for & they did it two days before it was due. My entire office (a whopping 3 people) had to drop everything to find all of those thing & copy it.

Anyway, apparently it didn't matter what I charged, because it never got paid. Still waiting, it's been over 6 months now.

I called about it a few times, and he said I'll get paid when the case is settled (when the community property is split). EERRR!!! I feel like hiring an attorney to collect my money!!!
 

#11
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How about calling the Bar and asking what to do about an attorney that doesn't pay his bills? They may frown on this and help you. Sometimes subpoenas include some wording about costs.
 

#12
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kathyt wrote:In December (2013) I was given a subpoena for a client in a nasty divorce. I kept the husband as a client (we do his bookkeeping for several businesses they own) and the wife went elsewhere, the wife's attorney sent me a subpoena for all tax returns, records, bank statements, cancelled checks, check stubs, receipts.... for the last 5 years. We had TWO days to get the records together & copied. Normally I never keep stuff like that, but they just had not picked it up in a while, so I had a lot! The total came to 5,610 pages.

So I called an attorney friend and asked what the going rate is, they said between 15 to 25 cents a page; I opted for the higher amount of 25cents because the attorney really ticked me off with that, it was a ridiculous amount of records they asked for & they did it two days before it was due. My entire office (a whopping 3 people) had to drop everything to find all of those thing & copy it.

Anyway, apparently it didn't matter what I charged, because it never got paid. Still waiting, it's been over 6 months now.

I called about it a few times, and he said I'll get paid when the case is settled (when the community property is split). EERRR!!! I feel like hiring an attorney to collect my money!!!


Send monthly statements with interest added at the highest rate allowable under state usury laws.
 

#13
ATSMAN  
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Not sure about all states, but my state allows reasonable copying records and other misc. expenses to answer a subpoena. Most ethical lawyers understand this and you should be able to come to an understanding and get it resolved before you start. If not I would approach the clerk of the court that has jurisdiction and apply to squash the subpoena. I think that will get a resolution in a hurry.
 

#14
dingus  
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I have something in my engagement letter that says if we're required to respond to a subpoena that ya'll are gonna get billed at our normal hourly rates...seems like a fair solution to me.
 

#15
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Shouldn't that payment come out of the retainer the requesting attorneys paid to you?

I mean the IRS understands that they won't get a tax return prepared if the client is not paying me, so why should the attorney?

Can you legally respond that the records will be forwarded at such time payment is made for them. These attorneys have thousands sitting in their retainer accounts and they will halt work if that account hits zero.

This is a good reason to have a record retainage policy and to destroy all documents held upon that expiration date.
 

#16
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dingus wrote:I have something in my engagement letter that says if we're required to respond to a subpoena that ya'll are gonna get billed at our normal hourly rates...seems like a fair solution to me.


Doesn't sound fair to me. The subpoena comes from the client's adversary. It should have a check enclosed, or at least contact information to acquire the check before starting work. The first step is to call the client (assuming the court has not imposed a gag order) to see if the subpoena is contested. One's own attorney or insurance agent is next on the to do list.
 


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