Discussion:Clients shopping for a better deal

you always must give the client back his original documents, in spite of a disagreement over payment

"I am very expensive, however, I am knowledgeable and efficient. So, if you are looking for the cheapest price go somewhere else."

Will

The good news, though, even though they wasted your time - if they are going to someone else to lie about their year, it's not your liability on the line.

" dear client, after careful consideration, because I believe it is in the best interest for both of us, I will no longer be providing you with my tax accounting services"

I've only done this 3 times, but what a wonderful feeling :)

Will

Some will Some won't So what Move on

When I have a difficult day, I remember this montra and force a smile and get on with life. This is not always an easy task but after a while I feel better. I am pushing the issue of "more likely than not" with my clients - if I don't feel comfortable, then I am not doing it.

Few ways to handle this: (1) put their return on a side wait until they call you, ask them when to expect it back. During the conversation, you would know whether or not they want you to get their tax done.

(2) Do the return and have them come in to sign it. If they decide to go elsewhere, make them pay 1/2 fee and would credit it if they come back. I have one client who did that last year... I charged him a full fee, didn't see him come back until this year when he returned to file tax 07, ofcourse, new return, new fee!

There also others "pain in the neck" asked just do an "estimate", see how much refund they could get, and will decide thereafter. I told them I only do an actual return, no estimate. Ofcourse, I wouldn't waste my time on such...

Good luck!

2 responses from yesterday are GREAT one from Roydale and the other from WKS.

Our minimum is a bit high so it helps keeps out the price shopper/refund shopper but in my start I did them at the clients kitchen table before the PC was invented. My advice in starting out is be brave and fire the refund shopper. It will liberate you mentally.

Many years ago, a good friend CPA was delivering a 1040 (moonlighting)to one of his side clients and the client asked him if there was anything that could be done about the fee. ($200 fee). He was so tightly wound from work he exploded and said sure!!!!

He tore the ruturn in pieces in front of the client and left the pieces on the kitchen table.

I love that story.

After she told me that it was her husband brow-beating her about the taxes, it brought tears to mine also. I went and printed her another set.

So a week goes by and I notice her info in one of our other CPAs office. I ask what was the deal and the lady had gone to H&R Block and they told her that they could not do the return because it was too complicated. So she came back to us. Needless to say I was there front and center and demanding a check when she picked up her return. Oh yea, I charged her $285 because there was actually less data than in 2006. I'm too nice!!!!!

He called me back in 3 weeks and asked me not to file his return since he already filed it with another tax preparer that "gave" him a bigger refund. I was not entirely surprised but it still upset me a bit.

Shortly after, another client showed up wanting me to "do something about" his return. He gave me a copy of his return that another tax preparer did for him (and charged, I hope). He owed taxes, so he wanted a refund. I reviewed his return and I realized that the other preparer went as far as he could being "creative". I gave this person his papers back and as politely as I could I sent him to another one.

If all tax preparers had integrity all of this wouldn't happen.

I had few clients that ran away, ignore all my contacts. I had no choice but to claim as "bad debts" on sch C.

Too bad we can't send them 1099-C's.

There is nothing to stop you from sending 1099-C. Just beware of the potential backlash from the client!

There is nothing to stop you from sending 1099-C. Just beware of the potential backlash from the client!"

There was a discussion on this quite a while ago. Per the Regs, 1099-c's are to be used by people in the business of lending money. Merely carying your own paper would not be enough. Not sure if the IRS would care or not, but why clutter the system when it tells you not to file it.

As far as backlash goes, what are they going to do to me? Not pay me?

Why should I forgive him?

I think I have a couple of people that I'll need to send something to this year, and figure you only really get one shot at shock value. If it doesn't get the response you want, then they aren't going to care and you're just wasting postage. I have a client meeting tomorrow with someone bringing in 6 years of unfiled taxes. I'll collect what my best estimate is of a 50% deposit, because if his only reason for filing now is to get the rebate coming in May, then I have bad news for him - he's probably not going to break even. New rule next year - at least a 50% deposit from everyone.

TERMS OF SERVICE, I request a credit card, make a copy, and have client sign engagement letter stating that if payment is not made the credit card will be charged and if there are any problems with the CC the account will be turned over to local enforcement for; Theft of services, this usually bring about a response like, ; Can I just write a check now?

TexCPA

"bringing in 6 years of unfiled taxes"

You are only asking for 50% upfront.

My policy is 100% in advance on all deliquent returns.

Here is the questions I ask myself, "If they won't pay even the Government, what makes me think they will pay me?" So I get it all in advance.

Question: What is my write-off rate on preparation of delinquent returns?

Answer: ZERO.

Volunteer Tax Preparer?

JUST SAY NO.

Rule #1.

Get paid in advance or when tax returns are delivered to client.

Don't waste time and energy doing billing on tax return preparation.

Why?

See Rule #1

Irritating people who won't pay you invites a lawsuit.

And is completely unnecessary. Why?

See Rule #1.

When I get home in the late afternoon on April 15th my bank account is full.

Why?

See Rule #1