pricing, fees & billing rates

tax season 2018: average fees set for 7% increases

but fees for entity returns are down. why?

average tax prep fees (via: drake software)

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a drake software survey of 2,4800 practitioners finds a trend in “gradual, low-percentage” increases in most fees in the last two years.

“the major surprise,” drake reports, comes “from tax-exempt and estate returns, the vast majority of which saw significant decreases. foreshadowed by an overall decrease of 19%, estate returns had the most significant drop.”

entity returns fees (via: drake software)

 

if you have a theory on why prices for estate returns might be declining we’d like to know. so would drake.

5 responses to “tax season 2018: average fees set for 7% increases”

  1. frank stitely

    i think drake definitely represents the low end of the market. i suspect firms preparing more complex returns tend toward higher end tax prep products.

  2. pat graham-block

    i think any reductions in fees are a reflection of the accountant competing on price. even if the prospect isn’t outwardly admitting they’re comparing service providers, when a prospect asks, “how much do you charge for the service?” the accountant is afraid the prospect is getting prices from multiple providers and therefore, discounts the price to get (or even keep) the client.

  3. rick telberg

    it’s astounding and mystifying, for sure. but that’s what this national survey of 2,800 tax professionals says. as they say, your mileage may vary. and, keep in mind, the survey is mainly limited to drake software users.

  4. carol e. allen

    are you really telling me that some cpa’s are preparing an estate tax return, form 706 for an average cost of $1,020 in 2015/2016?

    • liz hegarty

      i don’t know how how anyone can file a form 706 for $1,000. you don’t have to file one unless the estate is over $5 million + and so it has to have some complexity. to input just the investments (and do it correctly), each individual security with all the required info takes time. for a very simple estate i would be looking at $3-5,000. maybe the people answering the survey have never done a 706 and are estimating what they think the fee would be! if not, those drake software users probably need to raise their fees.