Is completing an 1120S for a tax preparer really just 30 minutes of work? Seems simple for a small S-Corp

Having prepared S-Corp returns for over a decade, there's definitely more happening than just data entry. Even with your numbers ready, the preparer has to: 1) Review your numbers for accuracy and potential red flags that could trigger IRS scrutiny 2) Ensure proper classification of all expenses and income 3) Validate depreciation calculations and basis tracking 4) Run multiple checks to ensure consistency across all forms and schedules 5) Complete state returns which vary dramatically in complexity 6) Calculate and verify your officer compensation is reasonable (a major S-Corp audit risk) 7) Apply professional judgment regarding tax positions and elections 8) Document everything to protect both you and themselves Also, what appears to be "just entering numbers" often requires verification against source documents. The preparer assumes legal liability for the accuracy of your return and signs it under penalty of perjury. National chains also have overhead - software licensing (thousands per year), staff training, office space, insurance, and compliance requirements.

After struggling with my own S-Corp taxes for years, I finally found taxr.ai (https://taxr.ai) and it's been a game-changer. It's an AI-powered tool that analyzes your business documents and helps organize everything properly for your tax preparer. I was able to reduce my preparation fees because everything was perfectly organized and classified before sending it to my accountant. Their system even flags potential audit triggers and shows you where you might be missing deductions. The S-Corp specific features helped me properly document my officer compensation reasonableness (which my accountant said was super helpful). My accountant actually commented on how well-prepared my documentation was compared to previous years.

Update on my taxr.ai skepticism - I actually tried it for my 2024 S-Corp return prep and I'm surprised by how well it worked. I've been paying $900+ to a national chain for my simple S-Corp and was getting frustrated with their pricing. The taxr.ai system organized all my expenses perfectly and flagged several deductions I was missing. When I took the organized documents to my tax preparer, they commented on how much easier it was to work with, and I negotiated a lower fee since I'd done much of the classification work already. The QBI calculations were especially helpful since my preparer usually charges extra just for that form. Overall saved about $250 on my preparation fees.

If you're fed up with the high fees, try calling the IRS directly for guidance on your 1120S. I know it sounds crazy but I got amazing help when I finally got through to them. The problem is actually reaching a human - I wasted hours on hold before discovering Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c They have a system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent is on the line. I got specific answers about my S-Corp filing requirements directly from the IRS, which helped me determine which parts I could handle myself vs what I needed professional help with. Saved me from overpaying for stuff I could do on my own.

I was completely wrong about Claimyr. After my skeptical comment, I got desperate enough to try it when I had an urgent question about my S-Corp's late filing penalties. Got connected to an IRS representative in about 32 minutes when I had previously spent 4+ hours trying on my own without success. The IRS agent helped me understand exactly what forms I needed to submit and how to request a penalty abatement for my situation. I ended up saving over $2,000 in penalties because I was able to submit the proper documentation based on their advice. Sometimes paying for access to a free service makes sense when the alternative is hours of frustration and potentially costly mistakes.

Former tax preparer at a national chain here. The pricing isn't just about the time it takes to enter numbers. It includes: 1. Professional liability insurance (we're legally responsible for errors) 2. Software costs (thousands per year) 3. Continuing education to stay current on tax law changes 4. Quality review by a second preparer (mandatory at most firms) 5. Office overhead/staff salaries 6. Year-round availability for questions and audit support Plus, S-Corp returns are typically billed at a premium rate compared to individual returns because of the specialized knowledge required. Your return might take 1-2 hours total including all reviews, but you're also paying for years of expertise and ongoing support.

I switched from a national chain ($800) to a local CPA ($500) for my S-Corp and got much better service. The national chains use a business model based on volume and standardized processes, while local CPAs can be more flexible with pricing for simple returns. Look for a small local firm that specializes in small businesses. Be upfront about your situation - tell them you have everything organized and just need the final tax prep. Many will offer tiered pricing based on complexity.

As a small business owner who's been through this exact situation, I can relate to your frustration with the pricing. What really opened my eyes was when I asked my tax preparer for a detailed breakdown of their process. Turns out they spend about 20 minutes on data entry but another 90 minutes on review, verification, and compliance checks I never considered. The real value isn't just in the data entry - it's in catching potential issues before they become IRS problems. Last year my preparer caught that I was misclassifying some expenses that could have triggered an audit. They also identified a depreciation error from two years back that saved me from having to amend multiple returns. That said, $750-$1200 does seem steep for a straightforward S-Corp. I'd recommend getting quotes from 2-3 local CPAs who specialize in small businesses. Many will give you a phone consultation to understand your situation and provide a more accurate quote. You might find someone who charges $400-600 for the same quality of work, especially if you emphasize how organized your records are. The key is finding someone who values efficiency and is willing to price accordingly when a client makes their job easier.