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Discussion:Refusing certain types of returns?

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Discussion Forum Index --> Business Growth Community --> Refusing certain types of returns?


Dagobert (talk|edits) said:

13 February 2012
Do any preparers on this board refuse to prepare certain types of returns? I have never really thought of this until this year. My office has never really prepared many EITC returns, but this year so far I have been getting many more and I am really not interested in preparing this type of return. I told my secretaries to tell people we do not prepare returns with EITC when they call to schedule a appointment. Basically is there any problem with the IRS or state with refusing to prepare a certain type?

Thanks in advance for any replies,

Al

Captcook (talk|edits) said:

13 February 2012
There is no requirement (currently) that a tax preparer must agree to prepare all forms. There are certain situations which a prudent preparer would either decline to accept the engagement or disengage after learning more about the situation. Disengagement may be a result of client ethics, client disorganization, engagement complexity, or time availability in the case of a drawn out engagement.

You may find yourself liable for breach of contract in situations where you agree to perform a service and later choose not to deliver those services. This is the reason many professionals choose to use engagement letters and will clarify those situations in which they may disengage and the consequences to each party when that occurs.

A man for whom I have a great deal of respect once told me: "You don't have a strategy until you can clearly state those things you won't do." It seems to me you're developing your business strategy. It's important to do so.

CutlerBayEA (talk|edits) said:

13 February 2012
Is it the "type of return" you are not interested in or the tax payer?

Dagobert (talk|edits) said:

13 February 2012
Both, one for the work required to verify on the EITC and additional paperwork required to be kept. The other on three separate returns I have spent time in preparing the return only to be told they want to file in a way that their tax situation doesn't allow. Once I explained I refuse to file the return as it would be filing an incorrect return they said they would go elsewhere. I am not really used to this type of attitude from my clients.

Death&Taxes (talk|edits) said:

14 February 2012
I avoid cash businesses like the plague, even when recommended by clients.

Kevinh5 (talk|edits) said:

14 February 2012
I'm wondering how one avoids the plague.

Is that like not expecting the Spanish Inquisition?

Bottom Line (talk|edits) said:

15 February 2012
I don't do farms, clergy, non-resident aliens or beauty salons. I learned just enough about these to pass the EA exam. I would have to spend hours getting up to speed in order to do a return and then couldn't charge the client enough to make money on the return. If someone were to ask me to do one, I would explain that I was not proficient in that type of return and to take it on would be doing them a disservice. I consider it similar to not doing representation work even though I'm an EA.

Pegoo (talk|edits) said:

15 February 2012
MMmmmmm Beauty Salons.

CrowJD (talk|edits) said:

15 February 2012
I won't do anything that requires honesty of a clergyman. I'm in the preaching game myself and to paraphrase Dick Nixon, "I know too damn much.".

Davidcpa (talk|edits) said:

16 February 2012
@Crow - Haha - I agree with you. When the minister stiffed me several years ago was when our payment policy became...absolutely, positively, no exceptions....no check/cash/credit card...no return.

CrowJD (talk|edits) said:

16 February 2012
Amen. Thank you Jesus!

JR1 (talk|edits) said:

February 16, 2012
I don't do foreign, 706's...and would like to toss NY and CA if I could, but sometimes I don't get to say no.

Trillium (talk|edits) said:

22 March 2012
robopost deleted... (it copied a section of Captcook's post above, and pasted it here, so responses below may reflect that...

CrowJD (talk|edits) said:

22 March 2012
certain situations which a prudent preparer would either decline to accept the engagement or disengage after learning more about the situation.

You got that right. In some cases it's not enough to merely decline the case. It is sometimes necessary to use the end of your boot to help them out of the office and into the street.

Southparkcpa (talk|edits) said:

24 March 2012
I'm with JR...no 706 no foreign, only simple 1041s.

Southparkcpa (talk|edits) said:

24 March 2012
I'm with JR...no 706 no foreign, only simple 1041s.

Fort Wayne CPA (talk|edits) said:

25 March 2012
I have found that when a practice is young and growing we tend to accept about anything that comes in the door. As we get wiser we soon realize that we should limit the scope of the tax returns we do and start being a little more selective when we can afford to be a little more selective.

We do few trust returns and will likely entirely stop doing them. We do not do foreign returns either. We have done a few inheritance tax returns and we will either stop doing them entirely or at least double our rates for them going forward.

Fletch (talk|edits) said:

25 March 2012
refuse nothing. Just charge accordingly

Erbilliards (talk|edits) said:

26 March 2012
Fort Wayne: Just curious, I'm a preparer with a reasonably large firm and looking at the fees we charge I was guesstimating that trust returns were likely higher margin than many of the others. What's the downside to trust returns?

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