Price Quotes Over the Phone

Apparently the person who posted this review of my office on Yelp had a bad experience when calling in for a price quote:

"Beware of hidden fees. A representative from this branch would not specify the base pay for tax preparation, but did say it will go up, because of the different variables they consider. When asked what variables, she would not answer."

The fallacy here is the notion that we can tell a person over the phone what the price will be for preparing their tax return before we know what is involved in that return.  Can an auto mechanic offer an accurate price quote over the phone without first reviewing the car to diagnose the problem?  Like it or not, the same holds true of a tax return.

"I have only one W-2 and nothing else."

I've heard that before.  Let's begin here.  There are actually four "base" tax returns.

Form 1040

Form 1040NR (filed by those who are non-resident aliens, unable to elect to file as a resident alien)

Form 1040A 

Form 1040EZ

Now let's consider that this person claiming to have only the one Form W-2 is in fact eligible to file the 1040EZ.  That tax return fee is $60 and another $57 for the state return if required.  But if they qualify to claim the Earned Income Tax Credit, there's an additional charge of $50 for the calculations and Due Diligence work involved in ensuring the taxpayer is eligible for that credit.  If the taxpayer is subject to the penalty for not having health insurance all year, there is an additional charge for the calculation of that penalty.

But if there is an entry in Box 12 of that W-2 for the taxpayer having contributed pre-tax dollars to the employer's retirement plan, and if that taxpayer qualifies for the Saver's Credit, then the Form 1040A must be used.  More expensive, and still just the one W-2 form.

And if there is an entry in Box 12 of that W-2 for the taxpayer putting money into a Health Savings Account, now we're talking the long form 1040, plus Form 8889 and a fee that is nearer to $300 than to the $117 for the simple 1040EZ/state return.

One W-2 and depending on what entries are on it, they may pay as little as $117 or more than $300, for just having one Form W-2.  Those are the variables referenced in that phone conversation this potential client was so frustrated by.

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This is why we don't do price quotes over the phone.  Let's suppose I was talking to that potential client and I mentioned prices in a range from $60 to over $300.  That potential client would hear only the bottom of the range.  They would focus on that $60 amount and when any potential variable came into play that increased the price above that level, they would be upset and frustrated.

We are happy to do price quotes.  In person, when we can see what's involved with the specifics of the return and can give a solid, accurate estimate.

I wonder if the poster of this negative review demands a price quote from the mechanic before that mechanic has had a chance to hook their car up to the diagnostic equipment.