Tax preparation deposit fee

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student5
Posts: 51
Joined: Wed Jan 06, 2016 8:07 pm

Tax preparation deposit fee

Post by student5 »

We migrated to a new cpa to prepare our 1040 last year. It went fine. We paid on time after the return was done, etc. This year, he wants a deposit of 50% upfront as a tax preparation deposit. Is this reasonable?

Thanks everyone.
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8foot7
Posts: 2431
Joined: Mon Jan 05, 2015 7:29 pm

Re: Tax preparation depost fee

Post by 8foot7 »

I don’t know if it’s reasonable or not but I certainly wouldn’t pay 50%. Maybe 10%, or a fixed $100. Or if I have been going to this firm for years, nothing at all. (Loyal clients shouldn’t have to put things on deposit.)

I guess if he asks again next year you’ll know if people thought it was reasonable or not.
dbr
Posts: 34186
Joined: Sun Mar 04, 2007 9:50 am

Re: Tax preparation depost fee

Post by dbr »

Is it reasonable? Maybe. If you don't want to do that you can take your business elsewhere. I wouldn't have thought this was typical. I can also understand that collecting from dead-beat customers could be a problem that plagues any provider of services. Lawyers usually ask for a retainer up front, but that is not quite the same thing.
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