Discussion:How do you handle untruthful clients?

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{{ForumReplyPost|UserID=Regio1959|Date=15 January 2006|Text=Regarding the EIC, there is a criteria test sheet that we review with our new clients that we have them sign off attesting they have meet such criteria. As far as any other income/deduction items we base our returns on substantiating documents and copy those we feel our substantial, extraordinary or vital in representing our prepared returns.}} {{ForumReplyPost|UserID=Regio1959|Date=15 January 2006|Text=Regarding the EIC, there is a criteria test sheet that we review with our new clients that we have them sign off attesting they have meet such criteria. As far as any other income/deduction items we base our returns on substantiating documents and copy those we feel our substantial, extraordinary or vital in representing our prepared returns.}}
 +
 +{{ForumReplyPost|UserID=Anuenue|Date=15 January 2006|Text=Re EIC issue: The IRS requires that they answer and sign the qualification form and that you keep it in your files. If you truly believe they are not being truthful, explain that you can't file EIC because they don't qualify for XXX reason/s.
 +
 +I tell my clients that I have a license to practice with the IRS and that if I file a return I know to be false, even though they provided the information, I will be subject to fines, penalties and possibly lose my license.
 +
 +If you suspect but can't verify the information is false, tell them you can't file their return with the EIC (or whatever the issues is )included. Suggest that they find someone that will. They are either going to realize that you know they are trying to cheat or they will go to one of those companies that don't ask enough questions to learn the true facts.
 +
 +So you lose a client...it wasn't a client you wanted to retain. After all it is your reputation that is at stake.
 +
 +I thought I lost a client last year because I refused to include a vehicle credit for a vehicle that was not specifically listed in the IRS rules for hybrid vehicles. The client wasn't very happy when I provided them with a copy of the IRS document but they called me back this year.
 +
 +I won't jepordize my license or reputation just because the car dealers don't put all the facts out there.
 +
 +Remember if you have facts that substantiate false information and the IRS questions you...you have to tell them what you know. If you knowingly file a false return it's your neck too.
 +anuenue}}

Revision as of 21:55, 15 January 2006

Discussion Forum Index --> Tax Questions --> How do you handle untruthful clients?

Johntaxman 1934 (talk|edits) said:

14 January 2006
Interested in how you handle tax clients that you feel is not telling the truth re EIC. What steps do you take to insure the data is correct?

Regio1959 (talk|edits) said:

15 January 2006
Regarding the EIC, there is a criteria test sheet that we review with our new clients that we have them sign off attesting they have meet such criteria. As far as any other income/deduction items we base our returns on substantiating documents and copy those we feel our substantial, extraordinary or vital in representing our prepared returns.

Anuenue (talk|edits) said:

15 January 2006
Re EIC issue: The IRS requires that they answer and sign the qualification form and that you keep it in your files. If you truly believe they are not being truthful, explain that you can't file EIC because they don't qualify for XXX reason/s.

I tell my clients that I have a license to practice with the IRS and that if I file a return I know to be false, even though they provided the information, I will be subject to fines, penalties and possibly lose my license.

If you suspect but can't verify the information is false, tell them you can't file their return with the EIC (or whatever the issues is )included. Suggest that they find someone that will. They are either going to realize that you know they are trying to cheat or they will go to one of those companies that don't ask enough questions to learn the true facts.

So you lose a client...it wasn't a client you wanted to retain. After all it is your reputation that is at stake.

I thought I lost a client last year because I refused to include a vehicle credit for a vehicle that was not specifically listed in the IRS rules for hybrid vehicles. The client wasn't very happy when I provided them with a copy of the IRS document but they called me back this year.

I won't jepordize my license or reputation just because the car dealers don't put all the facts out there.

Remember if you have facts that substantiate false information and the IRS questions you...you have to tell them what you know. If you knowingly file a false return it's your neck too. anuenue

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