Discussion:Unpaid tax fees what's our recourse

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Uncle Sam (Talk | contribs)
(We all run into)
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Lalva (Talk | contribs)
(Uncle Sam, you h)
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What I have done in prior years was to (if the client is local) actually file a small claims court action - where I did eventually get paid before the court date. Some other occasions I've sent a letter after repeated requests - notifying the client that I'm prepared to notify IRS to rescind my name as the preparer,as I haven't been paid. For a few years I did that and did get paid - but I've decided in recent years not to go that route because it really is an ineffective threat because what happens when I do get paid - renotify IRS to reactivate the paid preparer signature? }} What I have done in prior years was to (if the client is local) actually file a small claims court action - where I did eventually get paid before the court date. Some other occasions I've sent a letter after repeated requests - notifying the client that I'm prepared to notify IRS to rescind my name as the preparer,as I haven't been paid. For a few years I did that and did get paid - but I've decided in recent years not to go that route because it really is an ineffective threat because what happens when I do get paid - renotify IRS to reactivate the paid preparer signature? }}
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 +{{ForumReplyPost|UserID=Lalva|Date=16 April 2009|Text=Uncle Sam, you have said that before and I thought that it was only a threat, and you didn't send anything to the IRS. It can be an effective tactic, I would think. Don't send anything to the IRS, and if you don't get paid I would just forget about it.}}

Revision as of 17:12, 16 April 2009

Discussion Forum Index --> Tax Questions --> Unpaid tax fees what's our recourse

Wkstaxprep (talk|edits) said:

16 April 2009
Hi,

I would say over the years 99% of my fees have been paid in full.

About once every 2nd or 3rd year I get a client who doesn't pay.

what is our recourse, realisticlly?

I have a $400 fee from this year that I know I'm not going to get paid (because this was my only really nasty client and i've been dealing with this client for 5 years now and client got very disrespectful this year, so I told client to kindly find a new tax professioanl for next year).

Can I take this person to small claims court for the principal of it? usually i would let it go but this one in particular got under my skin good.

here's the kicker, this client is one of only two of my clients who refused to e-file so she had her return that i signed as preparer, darnit, lol :)

if she did e-file i could of said"i'm not e-filing your return, please find a new preparer) and i wouldn't even have cared about not getting paid for the work.

this is my only complaint this year, everything else was an enjoyable tax season.

thanks for listening !! :)

Uncle Sam (talk|edits) said:

16 April 2009
We all run into these rare situations.

If you feel it's worth your time in small claims court to fight a rather small bill - go ahead.

At present I've got a client for whom I prepared his and his wife's return back in February - along with the return of one of the sons.

Client had an issue with his return where he disagreed with the result, and I knew from the beginning it was going to be sore point. But this client has been with me for about 12 years.

He picks up the returns - and says he'll get back to me. (I KNEW he was going to take my info and show another preparer - but I wasn't going to fight the guy right away).

Last week he calls me to request I e-file his son's returns - but leave his alone. Both have been on my queue for e-filing since February. I finally get the son's e-file authorization forms in time and transmit the returns.

I haven't been paid for either return yet. (I KNOW I definitely won't get paid for his/wife's return - or even part of it - that I'll just chalk up as a loss because I don't intend on seeing him again).

What I have done in prior years was to (if the client is local) actually file a small claims court action - where I did eventually get paid before the court date. Some other occasions I've sent a letter after repeated requests - notifying the client that I'm prepared to notify IRS to rescind my name as the preparer,as I haven't been paid. For a few years I did that and did get paid - but I've decided in recent years not to go that route because it really is an ineffective threat because what happens when I do get paid - renotify IRS to reactivate the paid preparer signature?

Lalva (talk|edits) said:

16 April 2009
Uncle Sam, you have said that before and I thought that it was only a threat, and you didn't send anything to the IRS. It can be an effective tactic, I would think. Don't send anything to the IRS, and if you don't get paid I would just forget about it.