2018 Tax Professional Fee Study - natptax.com

1 2018 Tax Professional Fee Study When it comes to tax preparation fees, how do you compare to your competition? We have gathered and analyzed the data from our 2018 Tax Professional Fee Survey. Inside, you will find a compilation of the most critical details relating to what you charge for your Professional services. When data was available and signifi- cantly different from 2018 results, 2016 data was included. The information provided in this Study gives you a a distinct advantage over those tax professionals in your area who are not NATP members. Knowledge is power and knowing what your peers charge gives you the power to be competitive with your pricing and still earn what you're worth.

2 The survey was administered electronically to a 50% stratified random sample of NATP's membership population as well as a random sample of nonmembers. (n = 29,419 ). A total of 2,258 participants completed the survey for an overall response rate of 8% and a member response rate of 15%. Respondent & Business Profile Designations (more than one could be checked). Years in Tax Business Less than one year equaled zero. 2 2018 NATP Tax Professional Fee Study Respondent & Business Profile Total Number of Employees Number of Total Employees Tax Office employees consist of administrative that are Preparers staff and tax preparers.

3 In 2018 , 63% of employees consisted of tax preparers. Employment Role 2018 NATP Tax Professional Fee Study 3. Respondent & Business Profile Client Community Size Tax Client Target Market Percent of Revenue Derived from Tax Prep 4 2018 NATP Tax Professional Fee Study Respondent & Business Profile Services Offered: Overall Gross Revenue Percent of Gross Revenue Amending previous tax returns Calculating proper W-4 witholdings Estimated tax projections Filing a paper return Reviewing returns done by someone else Tax consulting Tax examination protection Tax examination representation Tax planning Tax preparation Tax reform consulting Other Types of Tax Consulting Offered Gross Revenue Earned 2018 NATP Tax Professional Fee Study 5.

4 Respondent & Business Profile Business Plan Respondents were asked to indicate their level of agreement with the following statements. Looking to Expand Services If Yes, Services Being Considered 6 2018 NATP Tax Professional Fee Study Respondent & Business Profile Services Being Considered, by Designation AFSP CPA EA No Designation Amending previous tax returns 49% 39% 40% 54%. Calculating proper W-4 withholdings 25% 26% 20% 31%. Estimated tax projections 36% 36% 33% 30%. Filing a paper return 17% 11% 11% 24%. Reviewing returns done by someone else 44% 37% 34% 47%. Tax consulting 49% 63% 53% 53%.

5 Tax examination/representation 47% 44% 58% 49%. Tax planning 48% 63% 48% 49%. Tax preparation 50% 50% 46% 51%. Other 21% 24% 26% 11%. Average Number of Tax Returns Prepared by Your Office 2018 NATP Tax Professional Fee Study 7. Respondent & Business Profile Preparation Trend Change in the number of tax returns prepared over the last two years Expected impact each of the following factored into the decrease in number of returns prepared 8 2018 NATP Tax Professional Fee Study Respondent & Business Profile Projected Impact of Tax Law Changes on Business Other impacts noted were tax planning, payroll, and client questions.

6 Projected Impact of Tax Law Changes on Business, by Designation Representing Services Complexity of Revenue Other clients offered tax returns AFSP Increase 25% 18% 24% 37% 16%. Stay the same 52% 66% 72% 42% 76%. Decrease 23% 15% 5% 21% 8%. CPA Increase 32% 15% 23% 68% 14%. Stay the same 50% 73% 73% 5% 80%. Decrease 18% 12% 4% 27% 6%. EA Increase 29% 21% 26% 40% 20%. Stay the same 45% 71% 71% 37% 73%. Decrease 26% 8% 3% 23% 7%. No Designation Increase 5% 3% 5% 8% 4%. Stay the same 11% 15% 14% 9% 24%. Decrease 3% 2% 1% 4% 1%. 2018 NATP Tax Professional Fee Study 9. Fee Structure: 1040 Individual Returns Method for Pricing 1040 Tax Prep Services Overall average charge for Individual return regardless of method $ Average set dollar rate per hour $ Set Dollar Rate per Hour (Average per hour rate of $ was multiplied by average total hours.)

7 Total is identified below.). 1040 return Schedule EIC/. (without Schedule A Schedule C Schedule D Schedule E Form 8962. EITC. schedules). $127 $127 $223 $163 $190 $126 $126. Set Dollar Rate per Hour by Client Community Size Schedule EIC/. Form 1040 Schedule A Schedule C Schedule D Schedule E. EITC. Less than 10,000 people $106 $106 $191 $127 $159 $106. 10,001 to 50,000 people $117 $117 $188 $152 $152 $117. 50,001 or more people $136 $136 $231 $177 $218 $136. 10 2018 NATP Tax Professional Fee Study Fee Structure: 1040 Individual Returns Minimum fee plus cost based on complexity of return 2018 .

8 New client $174. Returning client $162. Minimum Fee by Client Community Size Individual Returns New client Returning client Less than 10,000 people $139 $127. 10,001 to 50,000 people $167 $155. 50,001 or more people $188 $175. Set Fee per Form and Schedule (Average). Form 1040 (with- Schedule Schedule A Schedule C Schedule D Schedule E Form 8962. out schedules) EIC/EITC. 2016 $114 $60 $101 $60 $81 $86 N/A. 2018 $115 $49 $87 $40 $59 $38 $28. Set Fee per Form by Client Community Size Schedule Form 1040 Schedule A Schedule C Schedule D Schedule E. EIC/EITC. Less than 10,000. $98 $42 $83 $34 $53 $37.

9 People 10,001 to 50,000. $116 $47 $83 $37 $58 $37. people 50,001 or more $120 $50 $89 $42 $61 $39. people 2018 NATP Tax Professional Fee Study 11. Fee Structure: 1040 Individual Returns Fees for Forms and Schedules, by Region West East Southeast Midwest Great South Rocky Mt Northeast Plains Central Form 1040. $140 $118 $110 $108 $104 $125 $124 $119. (without schedules). Schedule A $59 $53 $51 $40 $42 $52 $58 $49. Schedule C $119 $87 $90 $76 $85 $90 $85 $90. Schedule D $55 $39 $43 $35 $35 $41 $42 $39. Schedule E $78 $63 $63 $51 $57 $54 $65 $62. Schedule EIC/EITC $42 $36 $37 $37 $53 $35 $33 $40.

10 Overall fee for federal $77 $61 $62 $54 $60 $60 $64 $68. forms Fee plus cost based on complexity of return for $194 $190 $174 $154 $138 $160 $188 $182. new clients Fee plus cost based on complexity of return for $184 $175 $159 $144 $138 $153 $172 $167. returning clients Set dollar rate $154 $150 $116 $104 $100 $121 $129 $118. 12 2018 NATP Tax Professional Fee Study Fee Structure: 1040 Individual Returns Average Set Fee for Form 1040 (without schedules). by Designation How do you charge for individual state tax preparation services? 2018 NATP Tax Professional Fee Study 13. Fee Structure: Business/Fiduciary Returns How do you typically charge for your business/fiduciary returns?