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Which Option do I select - Self-Prepared or Non-Paid Preparer

dude7707
Level 4

2 2020 1040's:

1.  Rec'd Processing Fee - Used their CCrd.

     Rec'd additional Fee - For Preparing Return.

     Option: Paid Preparer.

 

2.  Rec'd Processing Fee - Used their CCrd.

     Option: Prepared the return - WOULD NOT THIS BE A PAID PREPARER?.

 

#1 - Correct 

#2 - Correct? - NOTE:  There WAS NO additional Fee - For Preparing Return.

       

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10 Replies 10
sjrcpa
Level 15

What's your difference between processing fee and preparation fee?

 


ex-AllStar
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dude7707
Level 4

Processing Fee - E-Filing Fee - $45 excluding Sales Tax

Preparation Fee - Hourly Rate

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sjrcpa
Level 15

I don't think we are allowed to charge for efiling.


ex-AllStar
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Just-Lisa-Now-
Level 15
Level 15

You are a professional tax preparer, so you are a paid preparer.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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dude7707
Level 4

Would I Not select Non-Paid Preparer if no monies were received for preparing the 1040?

 

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dude7707
Level 4

To Recap of these transactions RE: 1040's:

1.  Self-Prepared - Prepared my own.

2.  Non-Paid Prepared - Prepared clients 1040 & Rec'd No Monies.

3.  Paid Preparer - Prepared clients 1040 & Rec'd Monies.

 

 

 

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itonewbie
Level 15

Are you saying you don't prepare some of these returns but get paid a processing fee to help other preparers or individuals e-file returns they prepare?

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Still an AllStar
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dude7707
Level 4

I prepare all these returns, just on some returns, do not charge my hourly rate but do have them pay the e-filing fee.  Ex.  some family members or partner's father.

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itonewbie
Level 15

§301.7701-15 defines when an individual is a preparer.  It is not clear you fall within any of the categories under subsection (f), which defines who is not.

If you really want to split hair, you should ask yourself whether the "processing fee" you charge is compensation.  I can see that it may not be if you are on PPR and you're strictly recovering only the cost of each return you are billed for by Intuit.  But I don't know anything about your subscription or your fees schedule to even make a guess.

What's your concern with filing these returns as Paid Preparer?  Even if you're an unpaid preparer, which means your name is not attached to the return, it can still come back to haunt you in some ways when things go south.  If you have concerns about your liability or reputation for these returns you don't charge a full fee for, perhaps you shouldn't prepare them at all.

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Still an AllStar
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Just-Lisa-Now-
Level 15
Level 15

I sign every return I prepare as a paid preparer whether Im paid or not, because I am a tax professional, not a tax amatuer.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪