After our initial contact, we will set up a portal for you to send over a copy of your last filed tax returns and answer a few questions. That will allow us to provide an estimate of our fees to prepare your next tax return.

 

From there we'll put together an agreement documenting what we will do for you and mutual expectations for you to sign, and  we will provide you with a customized checklist to help you gather your tax documents and information.

 

Note that we run a paperless firm and do not accept hardcopy documents. If you have documents that are not provided to you in electronic format, please see the "Paperless Firm" section below for more information and possible solutions.

If you choose to proceed with our tax preparation services, you can expect the following.

 

o The first year working together, we read your most recently filed tax returns to gain familiarity with your recent tax history. While we cannot guarantee catching errors in a return prepared by someone else, years of experience reviewing tax returns provides the tools to catch common mistakes and opportunities to amend the prior year, or improve going forward.

 

o We'll also look for any carried-forward deductions and credits from the prior year into the current year, so that nothing is lost in the transition.

 

o Tracking tax documents can be a pain - some forms come out in January, some February - but you can expect to receive a periodic check-in to refresh the remaining items we need, to make it a little easier for you to keep organized.

 

o Worksheets are available to help you with claiming all allowable expense deductions, and you can expect timely answers if you have questions filling them out.

 

o There aren't many ways to change your taxes after the year has ended on December 31st. However, if we identify opportunities for tax savings effective for the year we're filing, then we will bring them up as standard practice. For example, you may be able to make elections with your returns for a retroactive tax benefit, or you may have previously unclaimed tax deductions for things you already do as a matter of course.

 

o For those who prefer to file by April 15th, as long as all final information needed to prepare the returns is sent to us through our portal no later than March 10th, including answers to our questions, we can meet that goal and avoid a need to file extensions. If you prefer to file an extension just let us know.

 

o Once your returns are ready, you can expect a 'draft' copy and a two-year comparison 'cheat-sheet' for your review, so that you can feel comfortable that the returns are completely ready before finalizing and filing.

 

o We always prepare tax returns for electronic filing, payment, and refund unless you prefer otherwise or we're unable for some reason. (For example, if a tax authority hasn't set up a specific form for electronic filing.) A paper hardcopy will not be automatically provided to you unless requested.

The current minimum tax preparation fee for individuals (and spouses filing jointly) is $975. That may for example include a small self-employed business with organized records, or someone with investment accounts that produce Form 1099s, or a small rental, but if you have a combination or complex equivalent of these, then you should expect a higher fee for tax preparation.

 

A reduced rate is available for your children under 18, and under 24 if they are students, if they need their own tax returns prepared. The current minimum for dependents is $225 each, and if they only have a summer job and a bank account, that may be the entire fee for their return preparation. If they have adult-level financial complexity you can expect a higher fee estimate. Note that for anyone who is age 18 or older and needs a return prepared, we will need to treat them as their own separate engagement (they sign their own agreement with us and get a separate portal from your own) even if you pay the bills.
 

For a trust, minimum tax preparation fee is $1,300. Not all trusts require their own tax returns and we won't advise a tax return if we determine that it's not needed. Filings for decedents, estates, and trusts can vary considerably in complexity and a retainer may be necessary depending on the volume of work anticipated.

 

With delivery of your personal or trust tax returns we include a "safe harbor" calculation or discussion for your estimated taxes in the current year, at no additional charge. (Note that the safe harbor method's exception to avoid underpayment of estimated tax penalties is not applicable in all circumstances. We will discuss if an alternative could make more sense.)
 

Separately, if desirable, we can prepare tax projections for estimating current year taxes. The current fee range for preparing projections is $425-875 per quarter with a fee estimate available in advance. See the Quarterly Taxes page via the link at the top for more information.

We are a fully electronic firm, meaning that all work is performed with scanned or digital files. This is to your benefit - you don't want to pay someone professional hourly rates to go through your mail. If you typically receive documents on hardcopy, here are a few options.

 

o For documents that are not available in electronic format, we have an app available for iOS and Android cell phone users which you can use to take a photo of your documents and upload them directly to the portal.

 

o For common tax forms, employment Form W-2s, mortgage and loan interest Form 1098s, bank and brokerage Form 1099s, and Schedule K-1s, we suggest asking the provider if they have a portal or other secure means to send you a copy of your forms.

 

o If you have financial advisors who handle your investment accounts, we're happy to interface with them directly to receive those 1099s and K-1s. We will send you a list of the documents we receive to confirm everything is included.

 

o If you have many hardcopy documents, and the above solutions would not work for you, a paperless firm may not be a good fit.

We exercise standard and proactive practices to protect your information. As required under federal law, DAV Consulting, LLC maintains a written information security plan and adheres to safeguards such as the use of internal multi-factor authentication, encryption of data, and secure disposal of information. 

 

We do not use email to send you sensitive documents. We send you documents, and encourage you to send us documents through our portal. The portal is hosted by TaxDome, one of the most widely used providers for small and medium firms. See link below for TaxDome's privacy and security practices.

https://taxdome.com/security

Our clients are additionally protected through two-factor authorization on their portal login. (The first factor is your password, and the second factor is a code sent to your cell phone.) When you log in, the portal will request a 6-digit code which you can receive through an "authenticator" app on your cell phone. The most common authenticator apps, the Microsoft Authenticator and Google Authenticator, are available for both iOS and Android at no cost.

 

The cloud-based tax software we use is CCH Axcess, the same software used by the biggest accounting firms. The software is a product of Wolters Kluwer, and the link below provides more background and history on their company.

https://www.wolterskluwer.com/en/about-us

No one likes surprises that cost them money. As noted above, you can expect an estimate of the fee for preparing your tax returns in advance, so you can make an educated decision about proceeding with tax preparation.

 

If there is anything that comes up that could alter our fee estimate, you will be alerted promptly. This is a not a nickel-and-dime practice. If you receive a Form 1099 from a bank account you were not expecting, that won't impact your fees. However, additional investments, businesses, or increasing complexity in existing activities, could result in a higher tax preparation fee.

 

As with any business, you can assume our fees will rise in subsequent years in line with inflation and market conditions.