Tax Preparation Fees
Posted May 27, 2019
The Watson CPA Group prides itself in being transparent and having a simple fee structure. Most business services and tax returns will fit into the fees described below. Sure, there’s always the outlier or the unusual situation, but the following information gives you an idea of our philosophy. We only have time on this earth to sell and we cannot inventory it. Therefore, our fees are an attempt to coincide with expected time spent. In addition, we try to maintain historical fees for returning clients. Remember this however when you ask for your next annual raise or contract rate- we’re no different.
Most of our clients are primarily in California, Nevada, Colorado, Texas, the Midwest, Florida and New England, but we serve business owners in all 50 states. Please click on each button below for more information.
August and November Financial Tune-Ups
For those clients who have a tax-only engagement with us, we offer a lot more than just a tax return. Tax returns are boring. Tax planning including projections and end of year tax moves is way more valuable to you than 100 pages of gobbly-goo in some dust-catching PDF aimed at IRS compliance. Wow, that is a long sentence… anyways, in August we offer a tax planning tune-up and later on in November we offer an end of year tax consultation. These are complimentary consultations. Sure, you’re paying for it in some fashion with your tax preparation fees above but then again, this is a valuable service that most tax professionals don’t offer. Click the buttons below for more information. Riveting!
S Corp Package
The Watson CPA Group specializes in S corporations which have a small number of shareholders, and are often just a one-person show. Did you know that 95% of all S Corps have only one shareholder, and 99% of all S Corps have three or fewer shareholders? Because small business is a core competency for us, we have created an S corp package that includes the following (No, the S doesn’t stand for stormtrooper)-
|A la Carte*||Aspen||Vail||Breck|
|S Corp Reasonable Salary Calculation (sample report)||$400||Yes||Yes||Yes|
|Section 199A QBID Tax Optimization (more info)||$300||Yes||Yes||Yes|
|S Corp Payroll Filings and Deposits||$1,200||Yes||Yes|
|Annual Processing (W2s and other filings)||inc.||Yes||Yes|
|S Corporation Tax Prep (Form 1120S)||$800 to $1,200||Yes||Yes||Yes|
|Individual Tax Prep (Form 1040), One Owner||$500 to $700||Yes||Yes|
|Estimated Tax Payments (done thru payroll or directly by us)||$300||Yes||Yes||Yes|
|2019 Tax Planning, Mock Tax Returns (Tax Questionnaire)||$300 to $500||Yes||Yes||Yes|
|Unlimited Consultation and Periodic Business Reviews (PBR)||$1,200||Yes||Yes||Yes|
|First Research Industry Reports (sample report)||$150||Yes||Yes||Yes|
|Small Business Tax Deductions Optimization||inc.||Yes||Yes||Yes|
|IRS Audit Defense||NA||Yes||Yes|
Note: A la Carte fee ranges are approximates. 90% of our clients fit into these fee ranges, but there are outliers. We have a handful of clients with over 30 rentals; their individual tax return is north of $2,500. We also are assuming one state; if your business spans the galaxy (keeping with our stormtrooper motif) then additional fees will be discussed with you and implemented. Typically each state is around $250 since it affects both your business and individual tax returns (frankly, state apportionment is a pain in the butt, but it is our pain).
Couple of other things to keep in mind- we make very little profits on payroll processing… we offer it as a convenience to our clients. One throat to choke with a single call can be reassuring but if you want to run your payroll, go for it! Everyone thinks payroll is a piece of cake; write a check and done. Nope… we see a lot of mistakes being made by clients especially the handling of health insurance and HSA contributions since there are special rules.
You can prepare your own individual tax return (Vail package) as well… but the benefit of the Watson CPA Group preparing both tax returns is that we slide things around depending on income limitations, phaseouts, alternative minimum tax (AMT), Section 199A deduction optimization, etc. Having our arms around both can yield some good tax savings!
Some more things to consider- when a partial year remains, our usual annual fee is pro-rated to not charge you for services you didn’t use (like payroll and consultation). However, a large chunk of our annual fee is tax preparation which is typically a fixed amount of $1,300 (both corporate and personal). Whether we onboard you in January, July or December, we have to prepare a full year tax return. This increases the monthly fee for the remaining months of 2019 but the monthly fee will later decrease in January of 2020 to reflect the amounts above. Yeah, we make it sound like 2020 is just around the corner.
We are not salespeople. We are not putting lipstick on a pig, and trying to convince you to love it, even if Tom Ford’s Wild Ginger looks amazing. Our job remains being professionally detached, giving you information and letting you decide.
We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. Just because you can complicate the crap out of your life doesn’t mean you must.
Section 199A Deduction Optimization
Section 199A is a derivative of the recent Tax Cuts & Jobs Act of 2017. In a nutshell, business owners including rental property owners will enjoy a 20% deduction based on the qualified business income. There are limitations based on income, W-2 wages and depreciation. As a result, there is some optimization that is necessary for a small business owner to get the most from the Section 199A deduction. On one hand we want to reduce W-2 salaries to shareholders to minimize self-employment taxes. On the other hand, we want to increase W-2 salaries so they do not limit the amount of Section 199A that is deducted. Read our full Section 199A Qualified Business Income article by clicking on the button below-
As mentioned elsewhere we primarily focus on small business owners and their unique consultation and tax preparation needs. With 16 full-time consultation professionals including Certified Public Accountants and Certified Financial Planners on our team, the Watson CPA Group consults on corporate structures, S corp elections (even late S corp elections back to January), tax strategies, business coaching, industry analysis, executive benefits, retirement planning including individual 401k plans, exit strategies, business valuations, income tax modeling and tax representation.
We also work with business law attorneys in California, Texas and Colorado for business owners who have additional needs such as buying or selling a business including employee stock ownership plans and partner buy-ins. We also coordinate with Polycomp and RPS to create age-based profit sharing plans and cash balance (defined benefit) plans. We can run point on whatever your business needs so the communication is effective and efficient.
The button below links to our Periodic Business Review (PBR) Agenda. We use this throughout the year as a checklist for our business clients. We can also use it for any type of business consultation. Here are some other buttons that you might be interested in as well.
Click the button below to schedule a 40 minute consultation. Our fee is $150, but we credit that back to you if you decide to engage us for future services. Low risk, high- reward.
How does all this work? Let’s chat!
Jason Watson is trained by the American Institute of CPAs and the National Association of Certified Valuation Analysts for Business Valuation. Jason has represented several buyers and sellers in business acquisitions, and has helped divorcing couples value a small business for divorce property settlements. When performing business consultation and business valuation services under engagement, his hourly fee is $250 with a retainer of $2,500 to $3,000 depending on the complexity of the case.
We also have a short list of additional fees that might be incurred depending on your tax and accounting situation, and your level of readiness-
|Copying and returning of original tax documents||$45|
|Taxpayers who introduce significant changes or additions after a preliminary tax return is prepared; “crud! let me find some more expenses.”||$150 / hr|
|Extensive research, coordinating with attorneys, business consultation, writing correspondence (CPA or Partner)||$150 / hr to $250 / hr|
|Tax representation and audit assistance; typical case is resolved in two 2-hour sessions||$750 retainer, $250 / hr|
|Lender or “comfort” letters||$150 to $600|
|Business Valuations||$2,500-$3,000 retainer, $250 / hr|
|Divorce Analysis, Litigation Support||$200 / hr, $350 / hr for court|
|Admin Assistant or Staff Accountant billable rate||$90 / hr|
|Tax Senior or Tax Manager billable rate||$150 / hr|
|Partner billable rate (Tina, Jason and Sally)||$250 / hr|
|1 hour flat rate initial business consultation (click to schedule)||$250|
Please keep in mind that we pride ourselves in not being the nickel and dime type of tax and accounting firm. Generally speaking, we can provide a fee range or a not to exceed ceiling on our services and fees. This is what we do.. all day.. every day.. we have a pretty good handle on what it takes to complete a project.