Tax preparation deposit fee

[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.

[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]

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.