2018 tax professional fee study2018 tax professional fee study the survey was administered...

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.

When it comes to tax preparation fees, how do you compare to your competition?

2018 Tax Professional Fee Study

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%.

2 2018 NATP Tax Professional Fee Study

Designations (more than one could be checked)

Years in Tax Business

Respondent & Business Profile

Less than one year equaled zero.

2018 NATP Tax Professional Fee Study 3

Total Number of Employees Number of Total Employees that are Preparers

Employment Role


Tax Office employees consist of administrative staff and tax preparers. In 2018, 63% of employees consisted of tax preparers.


Tax Client Target MarketClient Community Size


Percent of Revenue Derived from Tax Prep


Services Offered: Percent of Gross Revenue

Overall Gross Revenue

Gross Revenue Earned


Types of Tax Consulting Offered

Amending previous tax returns 3.57%

Calculating proper W-4 witholdings 0.67%

Estimated tax projections 1.76%

Filing a paper return 1.96%

Reviewing returns done by someone else 1.33%

Tax consulting 3.70%

Tax examination protection 0.61%

Tax examination representation 2.61%

Tax planning 3.02%

Tax preparation 70.08%

Tax reform consulting 0.93%

Other 9.75%


Looking to Expand Services

If Yes, Services Being Considered

Business Plan


Respondents were asked to indicate their level of agreement with the following statements.


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%

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



Preparation TrendChange 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



Projected Impact of Tax Law Changes on Business, by Designation

RevenueRepresenting clients

Services offered

Complexity of tax returns

Other

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%

Projected Impact of Tax Law Changes on Business

Other impacts noted were tax planning, payroll, and client questions.


Method for Pricing 1040 Tax Prep Services

Overall average charge for Individual return regardless of method

Average set dollar rate per hour

$216.31

$126.43

Set Dollar Rate per Hour

Fee Structure: 1040 Individual Returns

1040 return (without schedules)

Schedule A Schedule C Schedule D Schedule ESchedule EIC/EITC

Form 8962

$127 $127 $223 $163 $190 $126 $126

Form 1040 Schedule A Schedule C Schedule D Schedule ESchedule EIC/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

Set Dollar Rate per Hour by Client Community Size

(Average per hour rate of $126.43 was multiplied by average total hours. Total is identified below.)


Minimum fee plus cost based on complexity of return

2018

New client $174

Returning client $162

Set Fee per Form and Schedule (Average)

Form 1040 (with-out schedules)

Schedule A Schedule C Schedule D Schedule ESchedule EIC/EITC

Form 8962

2016 $114 $60 $101 $60 $81 $86 N/A

2018 $115 $49 $87 $40 $59 $38 $28


Minimum Fee by Client Community Size

Individual ReturnsNew 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

Form 1040 Schedule A Schedule C Schedule D Schedule ESchedule EIC/EITC

Less than 10,000 people

$98 $42 $83 $34 $53 $37

10,001 to 50,000 people

$116 $47 $83 $37 $58 $37

50,001 or more people

$120 $50 $89 $42 $61 $39

Set Fee per Form by Client Community Size



West East Southeast Midwest Great Plains

South Central

Rocky Mt Northeast

Form 1040 (without schedules)

$140 $118 $110 $108 $104 $125 $124 $119

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

Overall fee for federal forms

$77 $61 $62 $54 $60 $60 $64 $68

Fee plus cost based on complexity of return for new clients

$194 $190 $174 $154 $138 $160 $188 $182

Fee plus cost based on complexity of return for returning clients

$184 $175 $159 $144 $138 $153 $172 $167

Set dollar rate $154 $150 $116 $104 $100 $121 $129 $118

Fees for Forms and Schedules, by Region



Average Set Fee for Form 1040 (without schedules) by Designation

How do you charge for individual state tax preparation services?


Fee Structure: Business/Fiduciary Returns

Overall average charge for business/fiduciary return regardless of method

Average set dollar rate per hour for all business/fiduciary returns

$471.65

$144.73

Set Dollar Rate per Hour

Form 1041 Form 1065 Form 990 Form 990-EZ Form 1120S Form 1120

$439 $577 $674 $365 $653 $624

How do you typically charge for your business/fiduciary returns?

Form 1041 Form 1065 Form 990 Form 990-EZ Form 1120 Form 1120s Form 8962


$272 $442 $498 $215 $566 $532 $106

10,001 to 50,000 people

$439 $546 $692 $439 $559 $612 $117


$469 $626 $688 $329 $673 $688 $136

Set Dollar Rate per Hour by Client Community Size

(Average per hour rate of $144.73 was multiplied by average hours. Total is reflected below.)



Minimum fee plus cost based on complexity of return

2018

New client $380

Returning client $369

Set Fee per Form and Schedule (Average)

Form 1041 Form 1065 Form 990 Form 990-EZ Form 1120S Form 1120

2016 $297 $388 $349 $220 $446 $494

2018 $317 $387 $370 $227 $451 $496

Form 1041

Form 1065

Form 990Form 990-EZ

Form 1120

Form 1120s

Form 8962


$237 $375 $295 $185 $460 $405 $27

10,001 to 50,000 people

$311 $379 $356 $222 $489 $447 $26


$345 $400 $406 $247 $508 $462 $30

Set Fee per Form by Client Community Size

Business/Fiduciary ReturnsNew client Returning client

Less than 10,000 people $304 $291

10,001 to 50,000 people $361 $352

50,001 or more people $413 $398

Minimum Fee by Client Community Size


Fees for Forms and Schedules, by Region


West East Southeast Midwest Great Plains

South Central

Rocky Mt Northeast

Form 8962 $34 $29 $28 $27 $41 $22 $28 $28

Form 1041 $454 $312 $275 $285 $345 $353 $321 $298

Form 1065 $551 $390 $351 $341 $419 $415 $368 $409

Form 990 $480 $319 $307 $349 $263 $437 $499 $421

Form 990-EZ $325 $200 $236 $212 $110 $239 $228 $212

Form 1120S $601 $482 $379 $413 $434 $461 $390 $527

From 1120 $646 $518 $415 $449 $356 $496 $450 $643

Overall fee for business/fiduciary returns

$518 $387 $338 $346 $337 $410 $374 $422

Fee plust cost based on complexity of business returns for new clients

$471 $381 $392 $344 $316 $368 $392 $385

Fee plus cost based on complexity of returns for business returning clients

$461 $370 $378 $325 $306 $362 $384 $375

Set dollar rate for business returns

$171 $187 $143 $125 $125 $129 $141 $135

17


How do you charge for business/fiduciary state returns?



Payment for Services

Payment Methods Accepted Frequency of Tax Preparation Fee Increases

Percent of Revenue from Automatic Payments

Fee and Payment Information

9%(such as credit card or bank account on file)


Discounts Offered

Percentage of gross revenue for other billed services

2016 2018

I do not offer any of the discounts

38% 13%

Free consultation for prospective clients

64% 59%

Family or friends of a tax preparer

59% 45%

Family or dependents of client

64% 49%

Students 53% 39%

Senior citizens 45% 3%

New clients 27% 14%

Returning customer 20% 0%

Advertised coupon 20% 9%

Discount for a past service error

42% 29%

Filing before a specific date 5% 4%

Charities or non-profits 17% 12%

Pro bono work 32% 23%

Vocation or affiliation (veteran, clergy, police, etc.)

19% 10%

Other 19% 7%

2018

I do not charge separate fees for the tax services listed below

6%

Amending previous tax returns 88%

Tax examination/ representation

66%

Tax planning 43%

Reviewing returns done by someone else 38%

Estimated tax projections

32%

Calculating W-4 withholdings

16%

Filing a paper return 18%

Tax consulting 54%

Other 5%

Amount paid for referral

$36.98

Fee and Payment Information

2018 tax professional fee study2018 tax professional fee study the survey was administered...

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