I charge them $45. If they don't like it I tell them they have three options (1) find the return I gave them, (2) pay us $45 for another copy and get it today, or (3) pay the IRS $58 and wait a few weeks for it to show up.

Cheryl, I love your answer! Time is money, and money is time - they spend money with you to get what they want or they spend time to look for their own copy. It all depends on how valuable their time is to look for it, or even get it in the mail from the IRS.

I think a $35-$50 range for a paper copy is just about right, considering the IRS is asking $58, and depending on the amount of time it takes to make the copy.

I would not, however, deal directly with a bank or other entity, only with my client, and I would explain to the bank that I need to contact my client directly to receive permission to release the documents in accordance with current law (they usually won't argue with that). I would have contacted the client explaining that we don't want to release information in order to protect their personal information ("I'm sure, Mr and Mrs Smith, that you wouldn't want me to send a copy of your tax return to just anyone who calls, would you?"); then I would let them know I will provide them with an updated 7216 signature form if they tell me to whom they authorize its release. Make it all about them and their authorization, and the safety and security of their information. If the client knows you are being careful with their info, they tend to trust you more. But also make sure that if they need it in a hurry (ASK!), and get the signed form back to you in a hurry (fax/scan OK), that you don't spend 5 days looking for their file or getting the appropriate copies made.

6.00 which is the actual cost of paper, ink, postage and handling. Or no additional charge for pdf. Service is our business And client retention is the name of the game.

I have started providing a pdf on disk with the hard copy at delivery. I watermark it as a copy and it is helping cut down on the requests. I agree with cpaboise that I no longer send copies to third parties. I also agree with etaxwiz that I make it as service oriented as possible, my best clients do not want to feel like they are charged everytime they call or need a little help. I am considering adding the scanned documentation to my disk for the client so they have everything on one disk. Any thoughts on that?

It depends on the client. If a good one, no charge. If one I would not mind losing, at least a $25 charge.

Helen, EA in PA

Really Cheryl. a few weeks for the IRS to send a copy of your return? That is a very hopeful timeframe considering Form 4506 states 60 days. If I were the customer, I would look for it in a few months. I love your response and all the others with regard to the question posed. What client in their right mind would ask their tax professional to send copies of their return to anyone other than themselves? We are tax professionals not administrative assistants! For the most part, my understanding is that even when clients have copies, their lenders, for example, prefer verification of the return filing from the IRS, just to make sure the client didn't just sit down and make a return. When the client has to request the IRS transcipt, it makes life easier for all of us.

I'm with Helen here - it depends on the client. AND we also deliver most of our returns in PDF format to our clients on a CD. We alert them with our annual organizer and engagement letter of two things (among others):

1 - bring in the CD and I'll put this year's return AND supporting tax docs on it and you can print as many copies as you need;

2 - if you need an additional copy it will cost you $50 AND I need to get a specific release from you in writing before I can send it to anyone other than you.

I also recommend that we send the copy to the client themselves. If the person we send it to loses it or if they need it for another reason there will be another fee.

Now, we have to be reasonable. For the client paying us $1,000 to do their return we will usually give them one free copy. For the high maintenance client that is a Royal PIA, we charge $50.

I think its also worth noting here that our clients treat us the way we teach them too. If we let our clients bully us around then we have no room to complain when they do.

I'd also be willing to be that the OP doesn't use an engagement letter. This clarifies what the client can expect from you and what you expect from the client. Sadly, our engagement letter for a 1040 is about 4 pages long (even more sadly, this is due to experience).

Lastly, I don't quite understand your comment about "he didn't want to pay for something he had not yet seen". HE WHO? The client had certainly seen the tax return, he had to sign either the return or the e-file authorization form. The broker has no right to see anything that he doesn't get from the client NOR does he have any obligation to pay for anything. Frankly, I'm not sure I'd accept payment from a third party for a client's tax return. It may be perfectly OK, but I just don't like the way it feels. I will however ponder this.

As far as pricing, I agree with Cheryl. I do waive the charge for good clients, however, as long as it doesn't become a habit.

As for the handling, the request has to come directly from the client. Accepting third party requests is just opening yourself up to trouble.

We just formalized this policy in our engagement letter this year and are reacquainting all of our clients with it.

We provide our clients with access through our secure portal. They pay an annual access fee of $45 if they are a current client $95 if they are not. They can access all prior year returns. We have a client who provides them with a service for all their documents for $495/year

I'm with Jack. We have a secure portal that we use to store the tax returns. It is also how we receive information from a majority of our clients. We don't charge them for access though. We pay very little per month and it acts as a marketing point and service area for our clients.

I'll gladly email anyone a soft copy. You want to print it? Have a ball. Free postage too.