Clients requesting prior yr AGI

[DaveO]

I give them the information for free. I don't handle the CP2000 notice that the DIY return generates for free however. I also charge for the 2848 needed to address the CP2000. Many, many former clients have become clients again after trying it on their own. I'll even amend the DIY return to pickup the education credit they missed for a fee!

[luke]

THE quote of this thread

TIME IS MONEY! Whether the clients are coming back or NOT is irrelevant!
The were given that information BEFORE and now must PAY to get it AGAIN!

[BP.]

Clients may come, they may go, and they even may come back. Goes along with the job. I pretty much love them all, even the departed ones. Love goodwill, love excellent customer service, hate nickel & diming people. Hate burning bridges. But like Jesse & Bart & others, I've been generous with my time, precious commodity right now, and if I feel taken advantage of it's only my own fault, and I don't want to go there. So setting a boundary on this is good for me, and the first person I tried this on (charging to replace a lost copy so they had the AGI info) totally respected that. Hard times have forced a few into DIY, understandable. I think tilt53 nailed it. Love the discussion!

Cheers!
Barb

[JohnH]

And I'm still searching for that One-Size-Fits-All Quick Response.

Next!

Bart: How about this?

"Sorry, but the dog ate your file. He's pretty regular, so if you'll come by tomorrow I'll save what passed through his digestive tract and you can search through it for what you need."

[Black Bart]

Playing it by ear

Like many others, I've agonized over this year after year. I can't seem to come up with a clear, consistent all-purpose response. I'm not sure there is any one right answer for all cases. There are so many variables...so many different angles to consider...

Hurt feelings -- we've bent over backwards to please this ungrateful dope who's paying us back by leaving (is the new guy doing it cheaper/better/what?)

We can't really make any money with $5 or whatever charges because it doesn't happen enough to be monetarily significant; so it's basically a token of self-consolation to ourselves to gouge him a bit (and that amount's unsatisfying -- maybe if I raise it to, say, $35...).

Is he really leaving? Can't say for sure. Some banks want the last three years tax returns for a loan and some accountants also want three years (although not so much anymore). He/she may/may not say for sure -- you may hear about it or may not find out until next year. If they DO flat out say they're leaving or run down my work and I'm in a foul mood, I may tell them to call IRS (and "The number's in the book") and get a copy (probably the best revenge).

Good will: Will they badmouth you all over town? Many are big talkers/ignorant blowhards nobody pays much attention to, but others are serious people whose opinions could damage your reputation. Of course, if they're going to another preparer that kinda nails down their opinion of your work and probably rules out future references.

If they were good customers, you might limit the damage by cooperating. Making them wait weeks for an IRS copy may turn a minor annoyance into a long-playing vendetta.

Recently I complained about a well-to-do DIY forms-freeloader and vowed "Never again." Then yesterday a humble looking, beat-down sort of guy shows up meekly requesting amended state forms -- I feel sorry for him, supply extra copies (even an instruction sheet -- yes, yes, I know; don't say it). Come to find out he'd confronted my wife earlier, practically demanded the forms; saying Dep't. of Finance told him all tax prepararers had them. She told him "They can tell you whatever they want; we don't work for DFA -- this is a private business" and to talk to me. The office was an overflowing beehive of W-2 guys that day, so he waited and changed his demeanor. Unaware of their conversation, I gave him the stuff and now I'm royally fuming about being suckered and not getting to tell that arrogant ignormaus to hit the road.

I just lost two $500 clients (father and son) -- I know they're gone 'cause I always do their W-2s/1099s and they're never late. They were dumb guys whose "books" -- computer-printouts that put bank loan proceeds right in there with sales -- were a little hard to decipher, but well-worth the limited effort. They were here 18 years, I don't have a clue why they're gone, and I even like them -- they're tightwads, but uncomplaining. I hate it, but don't know what I'll tell them if they/somebody else requests copies of stuff.

Oh well, just venting and throwing in my two cents' worth. And I'm still searching for that One-Size-Fits-All Quick Response.

Next!

[MAJ]

An ounce of Good Will goes further than an ounce of Bad!

I'm with John.
Many of my clients come from referrals. To DISatisify one could have a ripple effect.
Let's be honest. If they are impatient with finding the AGI they'll most likely give up on other hurdles. If you've given them the cold sholder there's a good chance you won't see the repeat business.

The economy is rough right now. People are looking for ways to save a few dollars. Can anyone honestly blame them? Now don't get me wrong - I don't do this often - but if I have returning clients who have referred me to others, and are having a difficult time I have thrown them a bone and reduce their return fee in good will. It helps them get past the hard times, generates high good will marks for me and in turn gets me more clients.

It could be some people are lookng for information for FAFSA or some other information too.

Yup. It's a pain in the butt to go and retrieve information..
Yup. Many clients can't find the return in the bright folder I supply them with.
Yup. Many clients take advantage of simple situations.
Yup. Those same people pay me and keep my bills paid this time of year.
Yup. I'll most likely give them the information when I have free time.


An ounce of good will will come back to help you.
An ounce of BAD will will come back to haunt you for a much longer time! Guaranteed!

Kind of like H&R Block's guarantee they'll find an error on 4 out of 5 returns they do a 2nd look at. I think I've found problems with 6 out of 5 H&R Block returns I've 2nd looked!!

[AZ-Tax]

A lot of variables involved...

I had a client in Feb 2008 ask for their 2006 Sch E. How you loose a Sch E from the rest of your tax return is beyond me since I staple all pages together. Never the less I asked the client if they plan on having me prepare their 2007 tax return. They would not response but again requested a copy of their Sch E in a more demanding way. Well I caved and emailed a PDF file to them for free. The client did have me prepare their 2007 tax return. On another client, this client hired a bookkeeper who was a friend of theirs but the client was not telling me if that bookkeeper was going to do their taxes. Well I finally got the answer out of my client that the bookkeeper was going to prepare their taxes. Then I get a call from the client that they lost their tax return and want me to print one out for them and oh was this client ever so nice to me. I told my client or now ex client, $5/pg with a $25 max. Guess what, my ex client found their tax return unless they found a cheaper one at WalMart : ). I market other products to my tax clients and those clients I usually let them slip on any duplicate copies, tax questions etc. Those clients have demonstrated loyalty to me.

[taxea]

I agree with BP...I provided a copy, if they want info the already have they can pay for another copy. taxea

[Snaggletooth]

Section 7216

Have had three calls this week requesting last year's AGI --- how about you guys? Folks need it for DIY tax filing.

Can you imagine someone who is DIY who can't even find the AGI from last year's return? Stupid knows no limits.

Anyone this stupid would never get past new disclosure rules under Section 7216. Tell them they have to come by your place and sign a release. You can't release information over the phone. They have to see you personally.

That way they either come back or have to go to more trouble than it is worth to DIY.

[JohnH]

So how much do we owe you for posting that last comment?

[dsi]

In my area, nothing if free. Time is money.

[JohnH]

I'm sympathetic to both sides of the argument, but my personal response would be to give them the info at no charge (unless it's a client I want to hassle to try and be sure they don't return). DIY's sometimes give up after spending a little time trying, or they occasionally come back in a year or two anyhow. So to hamstring them over a relatively minor issue like this is just guaranteeing they will go somewhere else if they do later decide to have the return prepared.

Considering that most of us will agree to spend a few minutes speaking on the phone with a prospective new client at no charge in order to generate business, why not extend the same courtesy to an existing client? I'd put it in the category of goodwill. On the other hand, if they want me to "answer a few quick questions" while we're o the line, then it's going to switch over to chargeable time.

If I'm occupied with a return when they call or it's otherwise inconvenient at the moment, I'd just tell them I'll email the AGI info to them as soon as I can get to it. (always looking to capture that email address if it's not already on file)

[David1980]

You don't want to lose clients over a matter of principal. The original poster didn't imply that the three clients that requested information were not coming back this year.

He didn't? "Folks need it for DIY tax filing." - I read that as implying the clients are not coming back. Maybe I misinterpreted.

[Gary]

Question

You don't want to lose clients over a matter of principal. The original poster didn't imply that the three clients that requested information were not coming back this year.

[tilt53]

I think the "deal" is that we have to stop what we're doing, close the file we're working on, open the prior year, look up the information, and give it to a client who already has access to the information but is too lazy to go find the return we gave him last year. They paid us for last year's return, but now want additional info. Let them figure out where they filed their copy. We have met our obligations. Why should we have to give them information so that they can bypass us?