What to do?

[BHoffman]

I have a client who was referred to me by a very good associate friend - I sort of owe this guy. He really helped me launch my business.

Problem is with the client, who refuses to answer my requests (now demands) for information I must have in order to prepare his income tax return. It's getting late and I'm swamped with a lot of other things.

This client started a business in 2009 with my friend's nephew. My friend wants me to take over the bookkeeping and tax work for that venture as well. I'd like to do that, but this client is driving me nuts.

What to do?

Thanks for any advice.

[erchess]

Firing a Client

I would personally write to the client and send in a manner that would require signature and give proof of delivery. I would use the USPS and I am sorry I don't know the lingo but the staff behind the counter can help you out. I would make mention of the fact that he has ignored verbal requests. I would still enumerate what I needed in a manner that would make it clear to any reader exactly what I needed. I would give him a deadline that I could live with and state the consequences of not meeting it. The consequences could be that he is fired as a client or merely that his return will not be prepared until at least y amount of time after he brings the stuff. I would spell out the penalties he faces if his return is late and note that I was not at fault and would neither discount my fees nor pay any part of the penalties. For me this is always the hard part but I would make sure that his outcome was no better than what I told him would follow from his behavior. (In other words if he misses the deadline fire him if that was the consequence and otherwise finish his return when you said you would and not earlier even if you have to spend some time recreating.)

This is one of those times when a TP wishes that the rules permitted us to discuss a client's problems with the client who referred them or is related to them or just knows them and whose business may be put at risk by what the problem client says about us.

[ChEAr$]

I have a client who was referred to me by a very good associate friend - I sort of owe this guy. He really helped me launch my business.

Problem is with the client, who refuses to answer my requests (now demands) for information I must have in order to prepare his income tax return. It's getting late and I'm swamped with a lot of other things.

This client started a business in 2009 with my friend's nephew. My friend wants me to take over the bookkeeping and tax work for that venture as well. I'd like to do that, but this client is driving me nuts.

What to do?

Thanks for any advice.

Do you mean you're waiting for info to prepare his 2008 return? (as I suspect)

IF I had such, and he had not responded after many proddings, and IF he got me
his stuff in time so that I could prepare the extended 2008 return by Oct 15 without
working any overtime, no problem, right?

Your friend who want you to take over the bookkeeing etc, will have nothing to do
with whether or not his nephew and your new client actually engage you. it will be
their decision, n'est pas?

[luke]

agree

with erchess - CYA letter is definitely needed

[Burke]

Don't expect things to get any better if you take over the business and the accounting. If this is how he deals with his personal return, it will get worse, trust me. Would run like the wind away from this one. I no longer nursemaid these guys by constantly reminding them of deadlines. I am firing two this year.

[JG EA]

with erchess - CYA letter is definitely needed

Within reason, but if I don't hear from a client I assume he is going elsewhere. I'm not a mind reader.

I had a client one time say that they thought I would remind them of their need to make a tax appointment. I said that 'How do I know you ddn't go somewhere else, or do it yourself.'

I recently wrote to a client and said if you don't get your info in by Sep 15th I'm not guaranteeing an Oct 15th finish date. I also said ‘since I haven’t heard from you I am considering the possibility that you no longer require my services – is that correct?’ That part they answered and said they are trying to get things together. But I still don’t have the info. At least they know….

[BHoffman]

Thanks for your advice. It's coming to the point where I guess I'll have to talk to my friend about this, and let him know I may not be able to help this client and friend's nephew. Hate to do that. Like I said, this friend really helped me launch my business.

Giving it until 10/01. If client doesn't cough up info by then, I'm sending his original docs and the QB backup disk to him and signing off.

[erchess]

Can you talk to the referrer?

What if anything can you tell one client about another without needing a signed disclosure statement? I think you better think twice about that conversation and I do fully acknowledge that your relationship with the referring client may sour because of what the bad client says about you.

[Bees Knees]

...I guess I'll have to talk to my friend about this...

I agree with erchess. No you cannot talk to your friend about this, unless your client gives you written permission to do so.

[BHoffman]

I do have written permission from client to talk to the referrer. Thanks for the heads-up, though

[FEDUKE404]

Friend should be out of the loop

More than once I've had "referrals" that fell through the cracks for everything from fee structure issues to some ah, "differences of opinion" as to what would or would not go onto the tax return.

What transpires between you and the new client is a separate issue from anything past/present/future related to the referring friend.

Regardless of your relationship (personal and/or business) to the referring person, I would be very careful as to any comments made other than "thanks for the referral" or "Joe decided to go elsewhere." The same advice would apply if the new client decided to give you his/her business for many years.

FE