Tax Planning With Clients

[geekgirldany]

Jesse post on giving advice to a client on selling a business made me think of a question that I really have been wondering about.

When doing tax planning with clients, do you do a write up of what was discussed and have the client sign it? or just make notes about what was discussed?

The reason I ask is that about a year or so ago I had a couple that was selling their business. I mailed and faxed a letter to them stating how the sale should be handled. Well they did not follow my advice and came back wanting me to fix the situation. They said that I told them to do the transaction different. This was such a big research job for me I know I did not.

Because they did not listen it not only changed their entire tax situation it changed their children as well.

So just wondering how you guys handle giving advice.

[Kram BergGold]

Document

I keep a paper trail in their file so I can be sure of waht I said.

[RitaB]

Me, too.

Faxes and e-mails are great, cause they can't deny what you said. (Always print the fax confirmation, too. Hard to argue when it shows clearly that the fax was received. On e-mails, request a read receipt.)

Phone conversations are tougher. Take good notes. I have not asked anybody to sign any notes. If I felt like that was necessary, I'd just say goodbye to the client.

I also take notes on these calls I am getting now (aaugh!) from people who aren't even clients, but have a "quick question" for me. (Like I am just sitting here hoping for one of those.) Ever notice it's never ONE question, and it's never QUICK? Anyway, they frequently show up later, and it helps to have the details of previous conversations.

[geekgirldany]

Thanks guys. Good information to know. I am already in the habit of writing the date and what was discussed on a piece of paper. I then stuff it in their folder. I need to get better on getting client's email address.

I am kinda bad on telephone conversations. That is something I will work on.

The clients I was referring to in the initial post backed off a bit after I presented a thick stack of papers where I had printed off information and what I had faxed them.

[AuditorTurnedGood]

I use activity logs

for each of my clients. I started this partly because of the "what did you do for my bill to be so high?" questions, but also to document what we discuss in calls and face-to-face meetings. I keep this in the electornic file along with my tax workpapers from previous years. Cuts down on the risks all the way around,

ATG