Any clients asked to hold their check or stiff you altogether?

[AZ-Tax]

More and more clients asking me to hold their tax prep fee checks for few day thou not yet been stiffed this year.

[RitaB]

I am holding a few

But it appears to be the same ones as always.

You know, the ones who call you EVERY day to see if it's ready yet. Somehow time is not as important when they are paying us...

[geekgirldany]

I've always got one that asks me to hold a check. So far no one else. If the check bounces then I do a polite call to tell them that they need to pay me soon or I will have to call the IRS to tell them I am not the "paid" preparer of the return. They seem to come around after that.

[BOB W]

When a clients asks me I say "sure no problem". Then I say "as soon as the check clears I 'll efile you return and send you your copy", OK?

[Auto]

great answer

I love that response to the "mind if I post date the check" question. I just got one of those last night. Next time I'll remember to use your answer.
Thanks,

[erchess]

Never been stiffed

I have one who usually needs me to hold the check but he always makes good eventually.

[SueBaby]

When a clients asks me I say "sure no problem". Then I say "as soon as the check clears I 'll efile you return and send you your copy", OK.

I used to do that too but now this year they want me to hold it till their refund comes in and they call me to say it is in the bank to cash their check. So far no problems.

I don't like doing that but with clients out of jobs now they don't have the money till their money comes in.

[thomtax]

I have 4 or 5 that I hold until the refund is deposited into their account. It is people that I know and are the same ones each year. I'm pretty selective and never had a problem. Quite frankly, it's tough out there and I understand the problems some of these single mothers are facing. And they are not the type referred to as calling and bugging about the refund.

LT

[Uncle]

eCollect

I am trying eCollect this year. Good thing too, as about 40% of my clients are asking for a bank deposit. I am eating the $10 fee, but then I charge $10 for M, so no problem. These folks simply cannot pay other than from a deduction from their refund.

[Jiggers]

e-Collect

I am trying eCollect this year. Good thing too, as about 40% of my clients are asking for a bank deposit. I am eating the $10 fee, but then I charge $10 for M, so no problem. These folks simply cannot pay other than from a deduction from their refund.

I am also using e-Collect. The $10 + $2 Drake fee is deducted from the refund, I believe.

I am giving the few clients that I will use this on the $12 in cash. BUT, I add $20 to their fee for this. They think they are getting this free.

I hate to do it this way, but it is not my fault they can't pay their fee.

The could go elsewhere and get an RAL for considerably more! Their choice!

I also charge $10 for Schedule M. And the L, $5 for the form, plus $5 for the property tax deduction and $10 for the sales tax deduction. I didn't raise my other fees.

[Brian EA]

Ecollect is the way to go.The refunds are deposited the same day the IRS releases the refunds.
brian

[David1980]

I do like the low cost fee collect offerings that are becoming available. Never liked bank products in general, but as the price for a simple "withhold tax prep fee and do direct deposit" falls I might do it.

The downside is you have the potential of not getting paid if the refund never comes through. So if the taxpayer has tax debt or child support or student loans or what have you there's no payment.

Still, it could be that more money is lost going forward by not having some way to collect out of the refund, and that potential loss is possibly less than the loss of checks that can't be cashed?

[luke]

i remind

those clients that we DO accept credit cards (even though it costs me some ..)
WILL hold a check as a last resort for repeat clients

[taxea]

1. a post dated check is illegal....I would ask the client to bring in cash and that his return will be filed when it is paid for.
2. I had a client that gave me an NSF check....I charged her 30 for bank fees and asked her to send me a money order
3. don't accept credit cards.
4. don't file the return until the client pays. If you are unsure of the check, take it to client's bank (any branch). They can determine whether the funds are in the account cash it and put the money in your account.

[BHoffman]

Postdated checks are not illegal

http://www.coveringcredit.com/business_credit_articles/Credit_Technique/art256.shtml