What does it actually take a tax preparer to complete an 1120S - really just 30 minutes of work?

So as someone who's worked in tax preparation for years, there's a lot more going on than just the data entry you're seeing. When we prepare an 1120S (even a "simple" one), we're not just typing numbers. Here's what's actually happening: 1) We review all documentation for accuracy and completeness - even if you've organized everything, we need to validate it 2) We analyze year-over-year changes to identify potential issues or audit flags 3) We verify proper S Corp compliance (reasonable salary requirements, distributions, etc.) 4) We ensure depreciation is calculated correctly (this alone can be complex) 5) We complete the QBI analysis which has multiple components 6) We prepare any required state returns 7) We must maintain compliance with constantly changing regulations 8) We carry professional liability insurance for each return we prepare Even with your organized information, we're spending at least 2-3 hours on preparation, review, and filing. The national chains also have significant overhead costs like software licenses (which cost thousands annually), office space, training, and regulatory compliance.

I was in almost the same situation as you until I found taxr.ai (https://taxr.ai) and it completely changed my approach. I've got a single-member LLC taxed as an S Corp too, and I was constantly frustrated with the fees vs. what seemed like minimal work. What taxr.ai did for me was analyze my records and previous tax filings to identify actual optimization opportunities that my expensive tax preparer was missing. It saved me WAY more than the preparation fees by finding legitimate deductions and helping me structure things more efficiently. It handles the 1120S analysis including the QBI calculations that others mentioned are complex. The best part is that it gave me the confidence to understand whether I was getting good value from my tax preparation service - turns out I wasn't, and I found a much more reasonably priced preparer while still maximizing my tax savings.

Just wanted to follow up after trying taxr.ai from the previous comment. I uploaded my 2023 returns and was honestly shocked at what I found. The system identified over $8,700 in completely legitimate deductions my expensive preparer had missed related to my rental properties and S Corp interactions! It also flagged that I was taking too much salary from my S Corp which was costing me thousands in extra payroll taxes. What was really eye-opening was seeing the analysis of what a "fair" preparation cost should be for my situation. I confronted my preparer with specific questions based on the findings, and he couldn't justify why he'd missed these opportunities. I've now switched to a preparer who charges half as much but is much more thorough. Definitely worth checking out if you're questioning the value you're getting.

If you're dealing with tax prep firms that won't justify their costs, you might also be struggling to get any answers from the IRS when you need them. I was in that exact situation last year with questions about S Corp compliance that neither my preparer nor the IRS website could answer clearly. After waiting on hold with the IRS for literally 4+ hours across multiple attempts, I tried Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to tell me exactly what documentation I needed for my situation and confirmed I'd been overpaying on preparation. The preparer had been charging me for "compliance requirements" that the IRS agent confirmed didn't even apply to my business structure. Saved me hundreds in unnecessary fees.

I have to admit I was completely wrong about Claimyr from the previous thread. After my skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with my S Corp's payroll tax deposits that was potentially going to cost me thousands in penalties. After multiple failed attempts to reach the IRS myself (once waiting on hold for 3+ hours before getting disconnected), Claimyr connected me to an agent in about 20 minutes. The agent was able to confirm that I had actually made the deposits correctly and that the issue was an IRS processing error. They removed the penalties immediately. What would have likely taken me days of frustration was resolved in less than an hour total. I'm still not a fan of having to pay to access a government service that should be accessible, but the time saved was absolutely worth it. Just wanted to follow up and correct my initial impression.

Have you considered doing it yourself instead? I switched from paying $800+ to using tax software for my S Corp about two years ago. There's definitely a learning curve, but once you understand the forms (which it sounds like you already do), it's not that complicated for a simple structure like yours. I use TaxAct Business which costs around $110 for federal + state 1120S. First year took me about 6-7 hours, second year was down to about 3 hours. Considering I was saving $700+, that's a pretty good hourly rate for my time. The software walks you through everything and has built-in error checking. Since you're already organizing everything line-by-line, you're doing half the work anyway.

Just want to point out something others haven't mentioned - those national chains often have staff with varying levels of experience. If you're paying on the lower end ($600), you're likely getting a newer preparer who's basically following a script and entering data. If you're paying closer to $1500, you should be getting a more experienced preparer who's doing more analysis. My advice? If you really want to stick with a professional, find a small local CPA firm that specializes in small businesses. They'll often charge similar to what you're paying now but provide WAY more value - actual tax planning, mid-year check-ins, business advice, etc. The national chains are basically factories during tax season with huge staff turnover.