What is an acceptable method of calculating an ERO's fee?

An acceptable method of calculating an Electronic Return Originator's (ERO) fee is a flat fee identical for all customers. This approach is compliant with IRS regulations, as it establishes a clear and transparent fee structure that does not discriminate based on the customer's financial situation or the complexity of their tax return. A flat fee ensures that all customers are treated equally and can help prevent unethical practices, such as charging higher fees based on a taxpayer's income or refund amount.

By using a flat fee, EROs can simplify the billing process, making it easier for clients to understand what they will pay without surprises. This method aligns with ethical practices in tax preparation and promotes trust between the ERO and their clients.