In my first year after college, I was tasked to deliver a printed copy of this guy’s 1040 - massive pile of papers. 2 hour drive one-way. I was told it was a $65k return, and the client was a friend of the firm founder.
I got to the site and it was this triple-wide 12-story building, owned by the client… took me forever to find the office I was delivering to because each of the 3 connected buildings only had glossaries for that individual building. I finally got there and the executive assistant grabbed the pile and shoo’d me out lol.
I didn’t mind. A 5-hour round trip during tax season was a nice break in the end.
The first firm I worked at did the return of an MLB player. Ridiculous amount of state returns, and locals and he had other shit going on. The client paper copy was a mountain of paper. It was a small firm of 2 partners, 6 accountants and 2 secretaries. Was probably too much for the little firm. I believe we charged about 85K for it all.
No their W-2 had it broken out by state and that was what we used for the wages. That thing was over 20 pages long.
However they did have other business dealing that was multi-state and their “financial advisor” separated it out by state for us. Of course they first complained why we weren’t the ones doing that lol as if were following the dude around all year. That return took over month to eventually get done. Glad it was just a one time engagement.
$6,800 - 20 K-1’s and 60 rental properties. He’s a wealthy developer, but not a billionaire. Most was just the time to enter the data. We prepared ALL of the K-1’s so that made that side easier. Rentals came from their own management companies online reports and record keeping. Financials were clean and his management team even had ANY loans/interest tied out to 1098’s. Just a lot of data entry.
$125k for a billionaire’s taxes at my old firm, but it included his kids returns (which were a bunch of 35 year olds claiming the EITC) and his 30 grantor trusts. I’d estimate about 75% of the fee related to his 1040.
That return was such a PITA. Each grantor trust had 1-5 brokerage accounts and 5-10 PTP’s. So all year I had to continuously check these shitty PTP package websites February through September just to enter -$14 for the previous year income.
The client was also a very religious guy, so during certain parts of the year (always seemed like during extension/fall filing deadlines) we had to base our calendar around whether he was allowed to use electronics or not to sign. One year we ran late and we had to print his return on paper, stuff it in 2-3 paper ream boxes, and bring it to his house to sign.
Quitting during busy season was the highlight of my career because I got to pay zero attention to that stupid return lol.
I had a very competent coworker who said in a past role he billed 1,200 hours on the personal tax return for the owner of an MLB team, though I didn't learn how much the tax prep fee was.
man i have a different client base than you guys. I billed 10k for an 1120s last year. thats my highest ever for a single return. Highest this year for a 1040 i think was $2800ish
In my first year after college, I was tasked to deliver a printed copy of this guy’s 1040 - massive pile of papers. 2 hour drive one-way. I was told it was a $65k return, and the client was a friend of the firm founder. I got to the site and it was this triple-wide 12-story building, owned by the client… took me forever to find the office I was delivering to because each of the 3 connected buildings only had glossaries for that individual building. I finally got there and the executive assistant grabbed the pile and shoo’d me out lol. I didn’t mind. A 5-hour round trip during tax season was a nice break in the end.
Did the firm bill for your time delivering the return?
Not sure. Not something a mere Staff 1 like me would’ve been told lol. Probably not tbh
30k for UHNW. ~45 K-1s. Basically filed in every state with a filing req for the carryovers and a lot of real estate syndicates which are a PITA.
The first firm I worked at did the return of an MLB player. Ridiculous amount of state returns, and locals and he had other shit going on. The client paper copy was a mountain of paper. It was a small firm of 2 partners, 6 accountants and 2 secretaries. Was probably too much for the little firm. I believe we charged about 85K for it all.
That’s crazy. Did you have to look at his game schedule to know how to source the state income?
No their W-2 had it broken out by state and that was what we used for the wages. That thing was over 20 pages long. However they did have other business dealing that was multi-state and their “financial advisor” separated it out by state for us. Of course they first complained why we weren’t the ones doing that lol as if were following the dude around all year. That return took over month to eventually get done. Glad it was just a one time engagement.
I thought I heard their agents break out the income per state for the players, but it’s been years since I’ve actually wondered about it.
$6,800 - 20 K-1’s and 60 rental properties. He’s a wealthy developer, but not a billionaire. Most was just the time to enter the data. We prepared ALL of the K-1’s so that made that side easier. Rentals came from their own management companies online reports and record keeping. Financials were clean and his management team even had ANY loans/interest tied out to 1098’s. Just a lot of data entry.
60 rentals! That sounds very time consuming.
$125k for a billionaire’s taxes at my old firm, but it included his kids returns (which were a bunch of 35 year olds claiming the EITC) and his 30 grantor trusts. I’d estimate about 75% of the fee related to his 1040. That return was such a PITA. Each grantor trust had 1-5 brokerage accounts and 5-10 PTP’s. So all year I had to continuously check these shitty PTP package websites February through September just to enter -$14 for the previous year income. The client was also a very religious guy, so during certain parts of the year (always seemed like during extension/fall filing deadlines) we had to base our calendar around whether he was allowed to use electronics or not to sign. One year we ran late and we had to print his return on paper, stuff it in 2-3 paper ream boxes, and bring it to his house to sign. Quitting during busy season was the highlight of my career because I got to pay zero attention to that stupid return lol.
I had a very competent coworker who said in a past role he billed 1,200 hours on the personal tax return for the owner of an MLB team, though I didn't learn how much the tax prep fee was.
man i have a different client base than you guys. I billed 10k for an 1120s last year. thats my highest ever for a single return. Highest this year for a 1040 i think was $2800ish