Incorporating Individual e-file Into Your Office Tutorial

e-filing fees

The fees involved with e-file vary.  Check with your software company to determine the most appropriate fee schedule for your business.  Software companies generally offer flat-rate plans and/or per-return fee plans.  Analyze your business carefully to determine which option best suits the needs of your business.  An example of an analysis performed to determine the best fee schedule is:

Smith Tax Prep Service prepares 150 current year tax returns.  The software they use offers both a per-return e-filing fee and a flat-rate fee.

  • The package price is $1,000 to e-file an unlimited number of state and federal returns.
  • The per return fee is $2 per state return and $3 per federal return.

If Smith Tax Prep Service e-files all 150 returns the price would be $750 using the per return fee schedule, which would be less than the $1,000 package price.  However, if the tax professional prepares and e-files over 200 returns the flat-rate price would be less expensive than the per return price.