Discussion:Bullet dodged I think
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Discussion Forum Index --> Advanced Tax Questions --> Bullet dodged I think
Discussion Forum Index --> Tax Questions --> Bullet dodged I think
| 28 February 2008 | |
| Potential client was sent to me by a very good referral source, so I found a way to set aside some time to meet with him right away.
We met yesterday & in the course of a 1 1/2 hour meeting he explained how he wanted to get right on top of the accounting for three rental properties he and a partner had purchased early last year, now that it's Feb 27. I explained the he probably would want to file a form 1065 for each, plus tax forms and state licensing filings for an LLC and a corporation he had set up early in 2007. He asked if I could show him what the forms would look like, & I ended up giving him blank forms 1065 and schedule E. We touched upon the passive activity rules & he also asked whether the IRS would be interested in the inflated income figures he reported on mortgage applications. I explained that we need to get him extensions for things right away and get a set of books prepared. He was averse to getting extensions & also explained that he can do the books himself, & would like to prepare his own tax returns, with my help. The final kicker was he asked that the meeting be a free initial consultation. Like a dope, I agreed on a partial discount. He had forgotten his check book so we agreed I would send him a bill. A couple hours after he left, I realized that I had messed up pretty bad & considered sending him an engagement letter requiring a huge retainer before I would do any more work. Finally I ended up calling him & saying that his situation was a little too complex for me & he should call the CPA society for a referral of a CPA with real estate expertise. I won't be sending him even the reduced bill we agreed on, so essentially I had 1 1/2 hours stolen from me (with my cooperation of course), but, did I dodge a bullet, or what? | |
Death&Taxes (talk|edits) said: | 28 February 2008 |
| Sometimes there are trains it pays to miss. | |
| 28 February 2008 | |
| this is one time I will not advise sending to an EA. you did the right thing. | |
| 28 February 2008 | |
| Thanks for the opinions. Sometimes I get a little fried this time of year & the judgment isn't what it should be. | |
| February 28, 2008 | |
| A bit late perhaps, but be in sales mode a bit when you're first meeting. Why are you here? Didn't you have an accountant? What went wrong? What are you hoping I can do? What's the budget?
Get that all out early so that you know where this is going, AND you're in control, not the client. In this guy's case, unless he lied, you'd have known up front that he was a DIY guy and was looking for a coach. And you could go from there. | |
| 28 February 2008 | |
| Thanks so much for the input JR1 - discussing the expectations, including the budget, upfront will really save me some grief in the future, I think. Since most of my new clients are referrals at this point, I assume that they have an idea of the deal, but that's not always the case. | |
| February 28, 2008 | |
| Even more important to get the budget number out early. If a single mom refers someone to me, did she tell them what I DON'T charge her? I want to know that early...on accounting work, it's easier to find a way to do it to hit their budget if you have to. It's all time and money, they're going to spend one or the other. For taxwork, it's tougher since most of us probably flat fee things, there's nothing they can do to minimize fees other than not meet with me! | |
| 10 April 2008 | |
| he also asked whether the IRS would be interested in the inflated income figures he reported on mortgage applications.
Isn't that Mortgage Fraud - a felony - penalty of 1-year in prison and $10,000 in fine. Who would want a guy like this - good lesson - next time charge a non-refundable retainer of $1,000. You will be better off. | |
