Unhappy Client!

[JG EA]

I still have nightmares about the client I had last tax season. I should have handled it so much differently. I should have refused to work under the conditions the client imposed. The client was unreasonable, but I can take unreasonable, I can't take confusion. So, I have resolved to make any client happy, and give them back their papers only with no fee. In this case I got so confused I ended up giving them the tax return and refunding their money. I was so distraught that I didn't ask for the return back.

This doesn't happen much thank heavens with an established client base. But watch out for those new ones. (A referral at that.)

[BP.]

This doesn't happen much thank heavens with an established client base. But watch out for those new ones. (A referral at that.)

It even could happen with established clients. I had a longtime (10yrs?) client call yesterday. He went into details about his terrible cancer diagnosis & awful treatment, and I listened sympathetically.

He then asked what I would charge him this year, said it should be "much easier" (can't itemize- split from wife & she is taking house deductions.) He became so angry and irate so quickly it was weird. I stayed calm, held firm, told him I wasn't going to argue over fees, they are what they are.

He says "no one uses a preparer anymore," they all spend $40 on DIY software; he is sure I do the same (ha!). I invited him to do that if that was the right fit for him & reminded him there are plenty of people who believe using my services is the the right choice for them. (I didn't even need to go there with him, I guess.)

Well, I booked him an appt, but I am thinking of canning him. I tried to give him the benefit of the doubt because of his illness, but the anger thing was over the top, and who needs it? I would feel somewhat bad about ditching him, but if there is no perception of the value I provide, then hang it. I am not used to such extreme reaction to fees, because I try to demonstrate the value I bring to the process.

I am actually wondering if someone this volatile (divorce/sickness) could be dangerous.

[JON]

Remember my remarks are those of a 60

year old man. For those of you looking for new clients and trying to market yourself - put me on the IGNOR list for reading. If you are younger than 40 get your government job and the CADILLAC benefits that come with it, now. Remember this national health plan is not for "him" he has a better plan. I wonder who pays for that...? Fools when are we going to wake up and say no more to all of them???? Phelps destroy this message in 60 seconds.

[thomtax]

Stress, illness and financial conditions can cause drastic reactions. Since you have been with him for so long, he may feel a connection with you that allows him to unload with you. In his changing situation, you may be all he has left.

It's easy to deal with a client when everything is "peaches and cream". And unfortunately, they may dump you without a fair shot and for not understanding something you don't get a chance to explain. But, I had one about 4 years ago that was just nasty one night, to the point I almost asked him to leave. I didn't and now he is one of the best to deal with people I have. There was just a tremendous stress situation, I found out later.

Or like one I just received a call about. He was very stressed last year, having just gotten a divorce. I did both returns, having the letters signed, etc. His ex-wife called me about doing his return. It seems his only child, a 13 year old son, died last year. The father just could not take it and a few months later hanged himself. I was glad that I did not add to his stress.

I guess what I am saying is that at this time of year, it is easy to let ourselves be on edge. And we are not supposed to be psychologists. But, if we are able to sympathetically listen, and help, they often become some of the best clients in the future. Unfortunately - not always.

I wish you the best of luck in handling this situation.

LT

[BP.]

LT, thank you for your perspective. As I was typing my tale, I wondered why I was even writing it all down. I realize it was to get another viewpoint. Appreciate you taking the time.
Barbara

[JohnH]

Stress, illness and financial conditions can cause drastic reactions. Since you have been with him for so long, he may feel a connection with you that allows him to unload with you. In his changing situation, you may be all he has left.

It's easy to deal with a client when everything is "peaches and cream". And unfortunately, they my dump you without a fair shot and for not understanding something you don't get a chance to explain. But, I had one about 4 years ago that was just nasty one night, to the point I almost asked him to leave. I didn't and now he is one of the best to deal with people I have. There was just a tremendous stress situation, I found out later.

Or like one I just received a call about. He was very stressed last year, having just gotten a divorce. I did both returns, having the letters signed, etc. His ex-wife called me about doing his return. It seems his only child, a 13 year old son, died last year. The father just could not take it and a few months later hanged himself. I was glad that I did not add to his stress.

I guess what I am saying is that at this time of year, it is easy to let ourselves be on edge. And we are not supposed to be psychologists. But, if we are able to sympathetically listed, and help, they often become some of the best clients in the future. Unfortunately - not always.

I wish you the best of luck in handling this situation.

LT

Excellent advice, and a great perspective. Sometimes when things get tense with someone it's wise to step back & take a breath. And maybe be thankful we are enduring a little stress at work; there are lots of people (including some of our clients) who have no workplace stress at all right now, but it's because they have no place to work.

[spencer]

Unhappy Client

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

Judging from the number of replies, you've hit a nerve here. I just had one of those. A very simple return. The guy had always gotten a bigger refund. I sat him down and we re-did the return on paper with no forms. Same answer. I pointed out his percent of withholding was less than last year. So what! Less refund, I'm going elsewhere. No charge, good riddance.

[spencer]

Unhappy Client

Judging from the number of replies, you've hit a nerve here. I just had one of those. A very simple return. The guy had always gotten a large refund. Must be a mistake etc. I re-did the return for him on paper with no forms, explaning each step. Same answer. i pointed out his percent of withholding was less than last year. So what! Out the door, no charge, good riddance.

[Roberts]

This is why I always ask for a copy of last years return for all new clients. They always like to tell me how massive of a refund they received last year but if you have the return in hand you can compare and explain.

I have a new client and she said last year she got a refund on her taxes. I had the return in hand and explained she deducted $35,000 in nursing services on her medical the previous year. In the information she gave me, she only paid $3,500 in nursing services. (the 3,500 was correct for both years it turned out)

I have a client I'm really good friends with and this year he about blew his head off he was so upset that he owed $5,000 to the IRS. How could it be possible? I just showed him that somehow his company withheld $6,000 less in taxes than last year so he needed to make that up. He quickly cooled down his anger towards me and it's now shifted towards his company accountants. As a returning client, it was easy to show him and compare with what he was used to.

If a client is going to get mad at me for something someone else screwed up, I don't want them as a client.

[Burke]

My software offers a Comparison sheet (I think most do this) which compares last year's figures to this year's right down the line, from every item of income to every deduction. I highlight the differences and show the client why this year they owe, or got less of a refund. I have never had a client refuse my work or fail to pay me because they did not like the result. Of course, I can't guarantee they ever mailed it in, either. I guess I'm lucky, but like Chear$, I only work by referral too. No walk-ins.

[AZ-Tax]

Mortgage proceeds on 2nd home used to improve/repair rental

Client borrowed on 2nd home and used all loan proceeds to improve/repair her rental. Client states rental is Manf home and could not locate a lender to loan on a manf home. So, is the mortgage interest deductible on Sch E?

[Black Bart]

Sometimes I have charged (that's the key word -- sometimes they won't pay) a fee ($25 or half, etc.) when I've done lots of work, but usually I give their papers back at no charge, return done or not. I figure an unhappy client who's out money is going to badmouth me around town a whole lot more than one who's out nothing. Maybe that's my "chicken" rationale to avoid a verbal/physical fight but I really hate to argue about the quality of my work. They either appreciate it or they don't and if not, then I want them to get out. I explain why their tax is up -- the good ones listen and the dopes don't.

[taxxcpa]

Unhappy client

It does not happen often enough to be worth trying to collect a fee from someone who thinks you haven't done his return correctly

Some people seem to think any time they owe, it is the preparer's fault.

I give them the documents they brought and refuse to take any payment whatsoever--even if they offer to pay. That way, I know they won't come back next year even if they discover I had NOT made an error. I don't want clients who quibble. If they find that I actually did make a mistake, I correct it at no charge and pay any penalty and interest my error has caused.

[thomtax]

but usually I give their papers back at no charge, return done or not. I figure an unhappy client who's out money is going to badmouth me around town a whole lot more than one who's out nothing. Maybe that's my "chicken" rationale to avoid a verbal/physical fight but I really hate to argue about the quality of my work. They either appreciate it or they don't and if not, then I want them to get out. I explain why their tax is up -- the good ones listen and the dopes don't.

You have just quoted my approach and thoughts exactly. Much of this thought may come from being in a small town where everyone is related to everyone else in-laws, cousins, cousin to married to - you get the picture.

LT

[RitaB]

Yep

Sometimes I have charged (that's the key word -- sometimes they won't pay.

Just took my car in for oil change and some other maintenance and ran into a young man for whom I prepared taxes last year. Charged him $75 for original, he got another form, mortgage interest, and I amended. Charged him $35. He never paid, but was getting MORE back, plus it was HIS mistake.

He would not make eye contact with me. When the service department calls to tell me they are picking me up to get my car, I think I'll request that they send HIM to get me! Hee hee. (No, I did not say THAT.)