Is my CPA's tax preparation fee reasonable for my business and personal returns?

In your experience, do CPAs typically charge more for medical practices even if the books are well-maintained? Also, would shopping around for a new CPA likely result in significant savings or is this pretty standard pricing?

Medical practices often come with additional compliance requirements and regulatory considerations that increase complexity, so yes, they typically cost more even with well-maintained books. The CPA is looking for industry-specific issues and proper handling of items like lab services, equipment depreciation, and potential Stark Law implications. Shopping around might save you some money, but I wouldn't expect dramatic differences for your situation. You might find someone 15-20% cheaper, but beware of significantly lower quotes as they might indicate corner-cutting or additional charges later. If you do shop around, focus on firms with medical practice experience, as that specialized knowledge is valuable.

How does taxr.ai actually work? Do I have to upload all my financial documents or just the invoice from my CPA? I'm careful about sharing financial info online.

Sounds interesting but skeptical. What kind of credentials do they have to determine "fair" CPA pricing? Seems like rates vary wildly depending on location, complexity, and the specific CPA's experience.

You only need to upload your CPA's invoice and a basic summary of your tax situation - no need to share your complete financial records. They use this limited information to analyze and compare against their database of fee structures. Their system is secure and encrypted, so your data remains protected. Their analysis is based on a comprehensive database of actual CPA pricing across different regions, business types, and complexity levels. The system was developed by former Big 4 tax professionals and uses current market data from thousands of actual tax preparation engagements. They account for geographic differences, industry-specific requirements, and the complexity factors of your particular returns.

How exactly does Claimyr work? Do they just sit on hold for you or do they have some special access to the IRS? I've literally spent hours trying to get through.

This sounds like a scam. There's no way to "skip the line" with the IRS. If there was, everyone would use it and it would become just as backed up as the regular phone lines.

The service works by using their technology to navigate the IRS phone system and wait on hold for you. Once they reach an agent, you get a call to connect with the IRS representative. They don't have special access - they're just using technology to handle the frustrating waiting process. It's definitely not a scam. They don't claim to "skip the line" - they just handle the waiting part so you don't have to stay on hold for hours. The system monitors the hold music and automated messages, then calls you when a human agent comes on the line. You're still going through the standard IRS channels, just without the mind-numbing hold time.

Thanks for sharing your rates - that's helpful perspective. I've been hesitant to ask for a breakdown of their work because I don't want to come across as difficult, but I think I need to have that conversation. You're right that tax laws change constantly. Did your CPA provide any kind of value explanation when they quoted their fee, or did you have to ask specifically?

My CPA provides an annual "tax planning letter" that outlines specific strategies they've implemented and potential opportunities for the following year. I didn't get this initially - I had to specifically ask for a breakdown of value after questioning a fee increase three years ago. After that conversation, they started providing this document automatically. It's been eye-opening to see exactly what they're doing beyond basic compliance. For example, they found a cost segregation opportunity on one of my rental properties that saved me about $8,000 in taxes, which more than covered their fee. I'd definitely recommend asking for something similar to better understand what you're paying for.

This is terrible advice for someone with a medical practice S-corp and multiple properties. The tax code complexity and audit risk are significantly higher than for a simple LLC. DIY software might miss specialized deductions, credits, or compliance requirements that would cost far more than professional preparation fees.

I appreciate your perspective, but I've been doing this successfully for 7 years with no issues. My situation is actually quite complex with multiple state filings and specialized business deductions. You're right that a medical practice S-corp has additional considerations, but someone with Big4 accounting experience likely has the knowledge to navigate those issues. I wasn't suggesting this approach for everyone, just offering an alternative given the OP's professional background. The potential savings of $5,000+ annually might be worth considering, especially since they're already doing most of the accounting work.