Unhappy Client!

[superman]

Just had a new client come in and leave their items with me. Completed the tax return and called for them to pick up. They were unhappy with the result because they owed tax and said never had owed for the last 20 years. Explained to client over phone as best as could why they owed and said no they wanted to go else where. I told them my hours and could stop by and get there papers. He then volunteered to pay me for my time and I gave him the price of $100.00 and he said that was to much.

Does anyone have a standard rate they charge for this sitution he is coming is tomorrow and would like some opions.

How is it our fault that they owe tax when they do not have enough withheld through out the year? It still amazes me every year there is at least one that blames me and what do you say? I would like to say you are STUPID and get out!!!!

Superman

[taxea]

If fhe return has been completed and is ready to file...I charge the prep fee. If I have not done anything on the return I charge 75. If I am waiting for them to provide additional documents I charge for the work that has been completed or 75. per hour for the work I have done.
I just had one. Client doesn't understand the law, doesn't comprehend the law explained in plain english and can't read the tax return. The fee was 305. and she has been told that her docs will be returned to her however, she owes me for preparing the return. The bill is due within 15 days and if not paid could be subject to civil action as underlined in the engagement letter that she signed.

[Bert73]

I think we have all had an unhappy client that owes, and if someone new to the industry has not, all I can say is " Stand firm on your belief that you did the best you could with what was handed to you." After a few years you become thick skinned and confident with those few doubting clients.
Once and a while one will trip you up and send your blood boiling silently, but you politely hand them their W-2s ect and send them on their way, after the door closes, then I scream.
I do not charge them anything if unsatisfied, but they also do not recieve any work that I have completed.

[geekgirldany]

Unless I have spent many hours preparing a return I will also just hand them the papers and let them be on their way. Of course they get no return or any of my papers.
I just feel it is better to have them gone so I can move on to other tax clients.

[erchess]

My Thoughts

Through the end of this tax season my policy is to guarantee satisfaction with the return or the disaffected client can have their stuff back and pay nothing. I advertise heavily that I guarantee satisfaction and in my mind that's pretty meaningless if there is a fee for a client who does not want the return. Through all my years in this business I have averaged about one dissatisfied client every other year. I don't like it when it comes but so far I think the goodwill I get outweighs the cost of occasional unpaid labor.

I do reevaluate everything at the end of every tax season and I certainly understand why some of you charge something even ranging up to full price for the work done before the client says they are dissatisfied In particular since I work in the homes and offices of clients I always consider the possibility of a charge for my gas and the wear and tear on my truck. I have considered both a variable charge based on time or mileage (with a minimum and a maximum) or a simple flat fee. I sometimes think this charge would apply only if the return was not wanted or if through the client's not being ready I had to make a second trip but I have also thought of applying it to all returns I do.

[Jiggers]

Unhappy because they owe

When I do a return and find that a client owes when he normally gets a refund, I do an analysis as to why.

Usually it has to do with the $400 less withholding in his W-2 AND his 1099R (Which shouldn't have) and his wife's W-2 and her 1099R, and the $250 each that they received from SS.

Or it may have to do with their C or F making a profit or less of a loss this year.

Whatever the case, I am ready for their questions.

If the client is mad and wants to go elsewhere, I give him back just his original documents, show him the door, hope it doesn't it him on the way out, and "adios".

But he won't be welcomed back as a client, ever.

[AZ-Tax]

I wish we ALL would mandate a deposit from the TP!

I wish it was standard practice for all preparers to require a deposit at time of the initial meeting with the TP. I think that would cut down substantially on those TP’s that intentionally want to stiff us. Is it possible Superman’s unhappy client just wanted Superman to calculate his/her tax return for free then go home and copy the amts on to his/her own tax return, absolutely. You really believe Superman’s client never had to pay any taxes for the last 20 yrs, I don’t. Superman’s unhappy client may pull the same stunt on another preparer and another preparer until he/she locates one that is going to get he/she a refund. The preparer may not be in business next year but does the unhappy client care. This sending the TP a letter if they don’t pay etc. I prefer not having to chase my clients down to get paid. Another reason I also market auto, home, life, annuities etc and Securities products to supplement my income to make up for my “unhappy clients”. I cannot remember who on this board said how many times they went to small claims court to collect and lost. Several of my clients have offered to pay up front and I felt bad about it in particular of them writing me 2 checks. I need to get serious about accepting debit and credit cards for 2010 and then require at least a $50 deposit. 2010 I am going to request $100 - $300 down for my S-Corps. Do any of you require up front deposits and if so how much?

[Uncle Sam]

First Client This Season

MFJ return client has been with me for many years.
Normally can't get the wife to bring stuff until last week of March.

This year - she calls last week of January. "I need tax return by 2/4 for FAFSA".

Brings her stuff in - turns out this past year she was on disability for a good part of the year - and she's the breadwinner - her husband barely earns minimum wage - about $ 20,000/yr with virtually -0- withholding on Fed'l and State. Also informs me that the bought a used vehicle during year. Had to call in bank interest from a bank account - which when she came to pick up the return informed me that was only 1 month's worth - and all I had to do was change 1 number on the return.
In 2009 the daughter for whom the FAFSA form was due for turned 17 and she lost the Child Credit.

Comes to pick up the return - and no matter what I explained to her - she expected a large refund like in prior years - because since her income was half, was expecting 1/2 the tax.

Normally - she writes me a check when she's at my desk. She had the tax returns in her hand - had the check out write - but then put it in her purse and asked "Can I send it to you?"

Well- I had other clients coming in after her -and wasn't going to argue and hold other clients up so I let it go. I'm probably going to have to chase her in Small Claims Court - cause I'll never get paid.
What she stated she'll do is have someone else check out the return.

[JON]

I like

the "geek's attitude". I have had people unhappy with the outcomes, but as far as I know they have never gone to another. My age and own attitude may have a lot to do with it. It is tough for people to out "crouch" me - and most know it. I think the most important thing is do not waste any more of your time on them. I have not accepted a new client unless they are referred by the current ones in years, and will not.

[oceanlovin'ea]

Hourly charge

I think maybe I would tell him that my hourly charge to do any work is (whatever you charge per hour). Tell him how much time you spent on the return and so your fee would be $.....

You are not charging him for doing the return. You are merely charging for your time. Since he offered to pay you for your time, he should comply. Notice I said should...he might still argue.

Linda

[RitaB]

Yeah, be ready

It is tough for people to out "crouch" me - and most know it.

I like that statement, Jon. I have a lady picking up today who owes state of TN $1100. Last year, it was $1969. This lady is NEVER happy! She shrills, "Well, that's almost what I paid LAST year, and my investments went down!" (Not true, just no capital gains distributions this year; investments gained $230,000. Poor lady.)

ANYHOW, here's what I'm telling her when she comes in, "If you are selling widgets for $19.69, and I offer you $11.00 for one, what would you say?"

You're right, I am probably wasting my time and will get a blank stare.

Regarding the question in the thread, I would hand back their papers and not charge anything. The bad publicity is not worth it to me.

[ChEAr$]

What I do, is only accept a new client who has been recommended by an existing (or former) client. that alone weeds out some of the PITA's. Next, I MUST have a copy of last year's return; no exceptions. There's too much room for a client to omit some item of income previously taxed.

Don't demand a retainer fee, but probably should; we all should.

Also I don't just let someone new drop their stuff off. I insist on sitting down face to face and reviewing last year's return, looking through major items for current year and from that I can usually get a feel for how much tax this year versus last, and compare that with w/h this year. All this make ony take 7 minutes, or 10, but at that point I will know whether or not I can work with the client for the long haul.

If you let em just drop their "s tuff " off, be prepared for follow up phone call about contributions: "Just put down what we gave last year: $500.!
Sure.

[luke]

pay their fee

If I have a client who wants to take their return somewhere else (because they are not happy with MY result) - I give them their stuff back, with no charge and I tell them "This return was prepared correctly and if you take it somewhere else and get a "better" result, bring it back so I can check it for you and I will PAY the other preparers fee if it is correctly done!" - Of course NO ONE has EVER come back .....

[Larmil]

If I have a client who wants to take their return somewhere else (because they are not happy with MY result) - I give them their stuff back, with no charge and I tell them "This return was prepared correctly and if you take it somewhere else and get a "better" result, bring it back so I can check it for you and I will PAY the other preparers fee if it is correctly done!" - Of course NO ONE has EVER come back .....

I like your style!!

[superman]

Follow up

Well the client came in and got his stuff. To bad I was with another client and could not explain the return to him. Oh well it would of been a waste of time.

Thanks for all of your opinions. I was thinking of maybe taking him back but after reading this I will cut my losses and move on. You can not win them all.

Superman