Discussion:Problem Client

In 2005 and in previous years her tax returns were prepared by another EA.

2004 return appears to have been prepared correctly.

2005 return shows interest income, a business loss, business cap gains and Sch E partnership losses, netting total income and AGI of -$36136. Line 41 after itemized deductions -$43,875

Previous preparer did not include a 1045A documenting the NOL.

Return is being audited. Previous preparer is being sued by client. I am not familiar with the particulars of the return or the lawsuit.

Previous preparer won't return my calls despite direct request from client to do so. (I guess I'm not surprised at this!!)

So my questions are: 1- Am I missing something or shouldn't the previous preparer have included a 1045A? 2- Should I create a 2005 1045A myself based on the 2005 return in order to prepare 2006 taxes including the 2005 NOL? 3- On the other hand................ Client is somewhat flaky otherwise; possibly depressed (amateur diagnosis), possibly with a drinking problem (based on a rambling and incoherent 1130 pm voice mail I received from her one night), expense accounting is in disarray, she misses appts, she doesn't return calls ... would anybody blame me for firing her, returning her paperwork and saving myself some grief?

Thanks for your wisdom.

Based on your "On the other hand" comments, you don't need this problem. There are too many good ones out there to take this problem on at the beginning of tax season. The amount of time you're going to spend with someone that misses appointments, doesn't return phone calls and whose accounting is in disarray is going to take time away from good, easy clients. I wasn't going to penalize her for the 1130 pm voice mail (since I keep weird hours) until you said that it was rambling and incoherent.

From what you've told us about her, I don't blame the prior preparer from not responding to her phone calls. The easiest way to get out of it is to explain that your schedule now doesn't permit you to work on prior years' issues, and she can be better served by the preparer who prepared the return.

I have one of these type clients - not a severe as you've described - but each time she calls it's a dire emergency, lady cannot handle difficult issues or cope with any sort of stress. Apparently NO ONE I've spoken to on her behalf wants to deal with her.

Unless a carryforward election was made, you should be carrying the 2005 NOL back to 2003.

If the previous preparer is being sued by the client, you should be directing your questions through legal counsel.

Any thoughts on the tone my letter to her ought to take? In other words... the truth about why i don't want to work with her or an excuse (also true) for not wanting to work with her.

Thanks

After substantial deliberation, I have decided that I can no longer provide income tax preparation services to you effective immediately.

You don't need to provide a reason. If there are no loose ends from the 2006 return that you prepared, I see no reason why you can't just cut her loose. If you feel you need a reason, I'd use Uncle Sam's approach of explaining that your schedule doesn't permit work on prior years issues with the onset of tax season.

Unfortunately I spent many hours on her 2006 return but I never completed it because I never had all the information I needed.

So cutting her loose also means saying au revoir to the 2006 tax return revenue. I am willing to do this because there is just so much about her that is troubling.

Au Revoir, The New Tax Guy

Here's my story, sad but true: http://www.writing.com/main/view_item/item_id/376970

Thanks for sharing it.