Discussion:Six years due, now what?
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Discussion Forum Index --> Tax Questions --> Six years due, now what?
| 6 May 2008 | |
| My wife's friend's husband, who received a demand letter from IRS for 2001-2006, in December/2007, has yet to provide me with sufficient income and expenses from a SE business to prepare a return. I have been constantly reminding him we need to get going. Would appreciate any suggestions. What is IRS going to do next? So far they have been silent since the 12/07 letter. Will it be a series of cetified mail notices, with an unltimate SFR? If they do SFR, how long will TP have to still file returns? I hate these clients, wish I had never taken it on. Yet still want to do whatever I can to serve. Advice please! | |
| 6 May 2008 | |
| He will get a 30 day letter followed by a stat notice and then head into the collection series of notices after assessment. | |
| 6 May 2008 | |
| Lance, you should firest discuss with client whether they wish to pay you as a babysitter or as a consultant. both fees are expensive. If babysitter and they want you to nag them until they are ready to get you what you need,then bill them. Otherwise, explain to them the consequences out there and do it once, then leave the ball in their court. Do not worry, do not fuss. We get too caught up in worrying about our client's consequences when they choose not to listen to us. Unless they want to pay you to worry for them, relax.
I have two clients that specificlly request me to nag them for information so we do. They also get additional bills for time spent doing this and they are happy to pay it. | |
Death&Taxes (talk|edits) said: | 6 May 2008 |
| Is his business income generated from 1099s? If so, requesting an income transcript from IRS should be the first step after taking a POA.
From your phrasing of the question, I rather doubt this since if there were 1099s, IRS would have produced a SFR return by now. | |
Donniecastleman (talk|edits) said: | 6 May 2008 |
| Don't you love PITA clients from the get-go? I had someone call me the other day saying that they needed representation for a tax audit in 2 days on the 8th, complaining about how the tax prep place closed up shop and kept their stuff and oh my GOD they're so in trouble, also they don't have ANY records of ANYTHING, the evil TAX PREP PLACE KEPT IT ALL! In so much trouble that she called the day of our meeting late, saying she had overslept and can we do this tomorrow blah blah blah. I got out my nifty research hat, found the new place that the tax prep place moved to in town and called them up to let them know that they need to go by in person and pick up their stuff. Told them to call me when they get everything together and we'll meet. My phone has been silent ever since I left that message, sometimes you get more out of steering a problem client away from you than you do taking them on. | |
| 6 May 2008 | |
| It is customary among my clientel to wait until the firing squad is at "aim" before taking any proactive action to resolve their case. I would send the client a letter telling him how much time you need to prepare his returns after you get all the documentation then give him a copy of it when he comes in in a panic after his bank account or paycheck is levied upon. Get a retainer first. | |
| 6 May 2008 | |
| Yup, babysitter or consultant, that is exactly where I am stuck in the ditch, did not even realize it. I need to quit worrying about the dude and let him know his approach to this is going to cost 4-5 times what it needs to. I do have the income transcript, and without divulging to much (confifentiality) he is in the National Guard and gets a W2 form from them, and has a few 1099s, not many. I have already billed and collected for time incurred. Now its time to get the retainer up front, or tell him to go elsewhere. I could do his return annually for $500-600. The way he is doing it it will cost him tons more. I am going to quit losing sleep over it, thanks everyone. | |
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