Unfinished Work

[Nashville]

Woman came by 4-5 days ago wanting to file separate. Her husband had always done the filing and she had never received any of the refund, so this year she decides to file MFS. Husband has been using his aunt - an EA in a town 50 miles away.

Refund $3600. Only income for her husband was 50 wks of unemployment, some $14,000 with no withholding. Even so, their refund if filing jointly was $5300.

I could have e-filed for her on the spot. But I take time to explain to her that the impasse in the family was costing them $1700, and even though she had a refund, her husband would NOT have one. I told her she had the option of discussing this rationally with her husband, and I would wait before e-filing. She pays me for my work with a check.

Next day she comes back and asks for her W-2. She and her husband are going to file joint and go back to his aunt to file for this year. She thanks my wife in my absence for taking the time to explain to her and present her with options. When I hear of this, I write her a thank you note, returning her check, and it is in today's mail.

There is no question on this post, but I believe our expertise, goodwill, and reputation are positively enhanced by handling in the above manner, although I know some people who would not have done it. I don't know how this will work out in their household. We cannot solve the problems between family members, but we CAN present them with options, and give them the upside and downside of these options as we see them.

[spanel]

So your time is worth nothing?

I would absolutly give her some of her money back, but doing what the other preparer may or may not have been doing this entire time for free?!?

[PIGLEE]

I do the same thing as Nashville. It brings me more referrals, than the money I lost. Plus that leaves them not real happy with me. I have built my business on being nice to people, and being fair, and I always seem to have the money I need.

We live in a rural area, with a lot of summer visitors. They forget to bring their 1040 ES coupons with them. I always had them out free, with address stickers. I never charge, and have a nice visit with them while they are in my office. I don't refuse the tips though, which aren't much. But have received a lot of referral from it, and two people now mail their stuff to me, every year.

[Lion]

Give them back

I spend the time to explain to people what they should know, even if I think they'll go elsewhere -- file MFJ at their spouse's preparer, for example. Maybe a little less when I'm swamped with work and I suspect they'll go elsewhere! But, I too give them back their documents with a smile and don't charge them. It puts better word of mouth out there. And, it doesn't happen very often.

[geekgirldany]

I have done the same thing. Hasn't happened very often. I think there are circumstances where I would keep some of the money though. For example I had a client that used Peachtree. He was needing two years of tax returns prepared. Even though I tried my best I just could not prepare his taxes. I had spent over six hours on this client. I was really looking for him to fuss a little when I would tell him I was going to keep some of the deposit he paid. Instead of fussing he said he understood and told me to keep all of it. We agreed on half. He said as he left that he would come back to me after his prior years were straightened out.

Another one happened to me this week. Older couple called asking about if they had to file. I told them no over the phone but they wanted to come see me. Wife came and said they could not get any other tax preparers to talk to them over the phone like I did and she appreciated it. I told her why they did not have to file and to let me know if they have any other questions. I did not charge anything. When she left I ask her that I would really appreciate any referrals she may can send my way. Well today I got a couple of her relatives calling to make appointments to prepare their taxes.

I think it just shows that not everyone is out to get ya. I know I sometimes feel like that when I help someone and it comes back to bite me. But the above reminds me that helping people does bring back rewards later on.

[taxea]

My time is worth money and I would return her documents but she would have to pay the bill. I don't work for nothing and I doubt she would either. It isn't any different then going to any other service business, having the job done and coming back later asking for your money back for no good reason. I would have told her that the best I could do is change the return to a MFJ but that she would have to pay for the work I did.
I would also tell her that the check had been deposited and then get it in the bank immediately.
If she stops payment on the check I would take her to small claims court.

[luke]

this is a tough one

Our "policy" is that if anyone is NOT happy with our work they get their original documents back and dont have to pay (BUT dont come back!) After giving this more thought, our "policy" may be changed next year?
I DO think that this client could have been gently "persuaded" into remaining a tax client (MFJ)?

[RitaB]

Ron did a good thing

He will not lose in the end. I have done work that I didn't charge for myself, and I really don't regret it. What goes around comes around, as they say.

Now, about sending that thank you note... There is a special place in heaven because of that one...

[BP.]

But, I too give them back their documents with a smile and don't charge them. It puts better word of mouth out there. And, it doesn't happen very often.

Same here. It's rare, but it happens. And the good comes back around in so many ways.

[AJsTax]

I agree

with most of the prior posts. I guess it may be a holdover from when I worked for one of the storefront companies, but unless and until a return is complete and filed they may take their information and leave at any time with no hard feelings. We are strictly a customer service business and I think that is a good way to keep business coming in the door.
Remember, one unhappy customer will tell 10 friends, a happy one only tells one or two.

[Edsel]

John D Loudermilk

Remember, one unhappy customer will tell 10 friends, a happy one only tells one or two.

"Bad News Travels like Wildfire. Good news travels Slow."

(with apologies to country music writer John D Loudermilk, circa 1964)