Great question! Unlike other software providers, We charge the minimum of $28.00 Software developer fees, $39.95 Federal and (optional $14.00 State where states taxes are filed) Bank Product fee, and $60.00 Service Bureau fees. These charges are to your customer and NOT you and only applies should the customer utilizes the Refund Transfer for you to collect your Tax Preparation Fees using a Bank Product. If no Bank Product is used Backend fees are waived).  

Example your Preparation fee is $250.00 but Bob has an option to pay you directly the $250 using cash method or Debit transaction. If Bob can’t afford it you can offer him a refund transfer to have your preparation fees deducted from his tax return. So in addition to your preparation fees he would be charged $250 + $127.95 = $377.95 is what he would be charged to secure your preparation fees. 

*** IT IS UNLAWFUL TO HAVE A TAXPAYERS REFUND DEPOSITED IN THE TAX PREPARERS CHECKING ACCOUNT, IT MUST GO THRU AN AUTHORIZED IRS BANK FOR TRANSMISSION (BANK PRODUCTS)***

RED FLAGS 🚩 and ALERTS 🚨 If a Software Provided is offering you free Software: Be cautious, nothing in life is free. As Service Bureaus, money is made by Refund Transmitted using Bank Products BUT there are fees that can be hidden and charging enormous fees = Document Fee $200, Electronic Filing $150, Service Bureau $150 - $200, Software Fee $75.00 Bank Fee $39.95. 

As mention above here’s what some free softwares look like for Bob: with these HIGH BACKENDS FEES:$614.95 + $250 = $864.95 for your customer (hence they came to you vs. the big franchises competitors to avoid these types of fees 🤨)

Remember, these customers are paying for the Back End Fees:

Low Back End of only $127.95 = Purchase Reasonable Software (gives you room to stretch your prep fees)

Vs.

High Back End of $614.95  = Free Software (majority of your money is going to the SB and you did all the work😡, customers, will question the high end fees you have no control over and go to another taxpayer)

There is no right or wrong answer to this question, but I will refer to the circular 230 law, you can NOT charge a Taxpayer a percentage of their return… 1. It’s unlawful 2. Unethical… Best Practice is that you set your fees based on the service you provide- Rather it be a Flat Fee or Charge Per Form. Know your worth and remember greed is a sin, so be generous 😇

No worries, everyone has to start off somewhere and assistance is always available. We have a wonderful support team that can assist with the software. But I advise you to start with the team to get used to the software, have someone experienced review your taxes prior to submission and mentor you. Just because you have your EFIN doesn’t make you an expert, it just gives you the ability to fly solo and work independent. Remember you are now an ERO (Electronic Return Originator, Authorized E-File Provider who transmits the return to the IRS.