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Collecting and Refunding Fees

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    Collecting and Refunding Fees

    I wonder what other people's policies are in regard to people who, when the return is ready, do not want to pay or who at some point after paying want their money back. Here are my policies to start the discussion.

    If asked, I will give an estimate to the client on the phone or in person after eyeballing their stuff. I do not take the initiative unless my radar tells me they are a difficult client. If I do make an estimate I live with it unless during the return preparation I discover something they hadn't told me that makes the process more difficult than I thought. For example if I previewed wages and interest and then they bring out stock transactions or side business I will raise the fee and insist on their paying it if they want a return prepared by me. I do, however, allow clients who end up unhappy with my work including the bottom line or with the fee to pay me nothing. They don't get anything from me except what they originally gave me. In NC to do otherwise I would have to have an engagement letter that spelled out the alternate terms under which I was willing to work.

    I do not refund the fee for a return which has been filed. If they did a paper return or if their efiled return has been rejected I will refund their money provided that they give to me every piece of paper which I produced and gave to them. If the return has been filed and it seems that I made a mistake I do everything I can to undo the harmful effects of my mistake such as free amend and free representation. If they have to pay additional tax as a result of my mistake I have insurance that will cover the tax, penalty and interest. If they are still unhappy I will offer a fee reduction or elimination for the next year or two.

    I inherited all these policies from my first company that I worked for in this business. I have not actually had an unhappy client to deal with since I went out on my own, but I know that record won't last and I have to be ready with well thought out policies and procedures.

    #2
    Pretty much like yours

    If someone wants an estimate I usally tell them I like a auto tech the more I do the more I charge. If they insist on a dollar amount I will make it big enough to cover the worst case. I think I have only been beat out of a fee a couple times, but I would just write it off as an educational experience. If I miss something, I will do an ammended return no charge and I will offer my services for the next year no charge. I will pay penalties if incurred I do not pay interest, my reasoning here is they did have use of the money. By and large I don't run into too many of these items, most of my clients know that I am willing to go the extra mile for them.

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