Guides
What to put in a tax preparation business package for 2027
A 2027 tax preparation business package should name each service, its price tier, the staff who deliver it, and the client onboarding checklist.
What to take away
- A 2027 tax preparation business package is a named list of deliverables with a price tier and an owner, not a slogan about quality.
- Every preparer on staff needs a current PTIN before touching a federal return, per the IRS.
- Advertising a fastest refund or maximum refund claim invites FTC scrutiny. Claims must be truthful and supported.
- Client records must show income and expenses clearly and support every deduction claimed.
- Scope you did not write down becomes unpaid work in April.
This article is general business information for tax practices, not tax, legal, or credential advice. Requirements vary by year and jurisdiction. Confirm current rules with the IRS, your state board, or a licensed CPA or EA.
A package is a scope document, not a brochure
A tax preparation package lists what the client receives, what it costs, and who does the work. If a client cannot read the package and predict their invoice, it is marketing copy.
Build each package from four fields: the return types included, the documents the client must supply, the review steps your firm performs, and the price tier. Anything outside those fields is a separate engagement.
What goes in the 2027 package
| 2027 package line | What it covers | Price tier | Who delivers it | Client supplies |
|---|---|---|---|---|
| Individual return, Form 1040 | Wages, interest, standard deductions; best for single filers and simple joint returns | Entry tier, often flat fee | Staff preparer; reviewer signs off | W-2s, 1099-INT, prior return |
| Family return with dependents | Child tax credit schedules, education credits, dependent care; proof of dependent support required | Mid tier | Preparer plus dependent-credit reviewer | Dependent support proof, 1098-T, care provider ID |
| Self-employed Schedule C | Business income and expenses, mileage logs, home office | Mid to upper tier | Preparer with Schedule C experience; reviewer | Profit and loss statement, mileage log, home office measurements; not a shoebox |
| Rental property Schedule E | Depreciation schedules, expense allocation, passive loss limits | Upper tier | Senior preparer; CPA or EA reviewer | Prior-year depreciation records, lease, mortgage interest |
| S corporation and partnership returns, Forms 1120-S and 1065 | K-1 preparation and basis tracking | Business tier, per entity plus per partner | Business-return preparer; CPA or EA reviewer | Trial balance, ownership percentages, basis records |
| Multistate return | Apportionment across states, resident and nonresident filings | Priced per additional state | Multistate preparer; reviewer | State income and days worked by state |
| Extension preparation, Form 4868 | Filed when documents arrive late | Charged separately; not a discount | Staff preparer | Estimate of tax due |
| Amended return, Form 1040-X | Corrections after filing | Hourly or flat, quoted after review | Preparer plus reviewer | Original return, corrected documents, IRS notice |
| Prior-year returns | Back filings, often three years at once | Priced per year, with a volume break | Preparer; reviewer | Wage and income transcripts, prior returns |
| Notice response | IRS or state letters answered within representation authority | Flat fee per notice | CPA, EA, or attorney with representation rights | Notice copy, filed return, correspondence |
| Tax planning engagement | Projections, estimated tax schedules, entity questions | Annual retainer | CPA or EA | Prior return, income projections |
| Bookkeeping cleanup | Reconstructing a year of records before the return can start | Hourly | Bookkeeper; reviewer | Bank statements, receipts, accounting access |
| New-business setup | Entity election questions and first-year filing calendar; refer entity formation to a licensed attorney | Flat project fee | CPA or EA; attorney for formation | Formation documents, EIN, ownership details |
| Estimated tax review | Quarterly check-ins on safe harbor and withholding | Bundled into planning retainers | CPA or EA | Quarterly income figures, payroll data |
| Retirement income return | Social Security taxability, required distributions, pension withholding | Mid tier | Preparer with retirement experience | SSA-1099, 1099-R, pension statements |
| Foreign information reporting | FBAR and Form 8938 questions; complex fact patterns referred out | Quoted after review | CPA or attorney who handles foreign reporting | Foreign account balances, foreign income |
| Year-round support plan | Questions, notices, and planning between seasons | Monthly retainer | Assigned CPA or EA | Access to records and deadline calendar |
For how these tiers map to published pricing, see the tax preparation services and packages guide.
Client onboarding checklist for 2027
- Send the engagement letter with scope, fee tier, staff owner, and out-of-scope list.
- Collect government ID, Social Security or ITIN proof, prior-year return, and direct deposit details.
- Open a client portal folder and request missing documents by a dated deadline.
- Assign the preparer and a separate reviewer in the practice management system.
- Confirm the fee tier and payment schedule in writing.
- Schedule a document review before preparation starts.
- Log estimated tax payments and prior-year carryforward items.
- Set the next check-in date for planning or quarterly estimates.
Pricing the tiers without guessing
Do not copy a competitor's flat fee. Build your own from hours and cost.
Pricing a Tier From Cost
- Measure hours H per return type
- Blended hourly cost R
- Overhead O per return
- Floor = H x R + O
- Add target margin on floor
- Track actual hours one season
Let H be the hours a return type takes your team. Let R be the blended hourly cost of the preparer and reviewer. Let O be the overhead per return. Your floor is H × R + O.
Add your target margin on top of that floor, never on top of a competitor's price.
Track actual hours per return type for one season. The tier that loses money is usually the one you priced from memory.
Before you publish the package
- Confirm every preparer holds a current PTIN, per the IRS PTIN requirements.
- Check that every advertised claim is truthful and supported, following the FTC advertising guidance.
- Confirm your record retention system shows income and expenses clearly, per the IRS records guidance.
- Name the reviewer for each tier, separate from the preparer.
- Write the out-of-scope listaudit representation, bookkeeping, and amended returns priced separately.
- Set the date you will re-price the tiers.
Where packages break
The common failure is scope creep: a client buys the entry tier and asks for rental schedules in March. The fix is a written scope line and a change order, not a discount.
The second failure is credential drift. A preparer without representation rights answers a notice, which is a Circular 230 problem. Route notices to someone with the right authority, and consult the IRS Office of Professional Responsibility or a licensed attorney on discipline questions.
The third is a package built for a client you do not have. A firm with no business clients should not sell an S corporation tier it cannot staff.
For the client-facing version of this list, see how to package tax preparation services.
Common questions
What belongs in a tax preparation package?
The return types included, the documents the client supplies, the review steps your firm performs, and the price tier. Anything outside those four fields should be a separate engagement with its own quote.
How many packages should a small practice offer?
Three to five tiers cover most clients without confusing them. More than that usually means the tiers overlap, and clients cannot tell which one they need.
Can I advertise the biggest refund?
No. Refund claims must be truthful and supported, and the FTC treats unsupported results claims as deceptive advertising. Describe your process instead of promising an outcome.
