Client Resignation Letter

[Kurly]

Do any of you have a letter that you have sent to a client? resigning from being there tax preparer?.

If so can you share it with me?

Thanks

Kurly

[BOB W]

Do any of you have a letter that you have sent to a client? resigning from being there tax preparer?.

If so can you share it with me?

Thanks

Kurly

My letter is simple....Your fee has been increased to $1,000 per month with extra fees for corporate and personal tax returns.

[luke]

Seriously

Kurly you want to be careful how the letter sounds to the client (after all an unhappy ex-client will tell so many others, then they will tell others, etc)
I have tried to make the letter sound like the client's return was 1. now more complicated than I like to do? 2. would require too much "research" on my part? 3. fee would be too high and you dont want client to have to pay that much? 4(one I dont like to use) I'm "scaling" back and only doing simple returns now ....

[Jiggers]

My "You're Fired" letter

For several years I have prepared your Federal Income Tax Return, Form 1040. Please be advised that effective with the filing of your 2009 Federal Income Tax Return in 2010, I will no longer prepare your return.

I have decided to change the type of returns that I prepare and specialize in other areas of taxation and complexity. Your return does not meet this type and I must reluctantly resign from preparing your returns in the future. I am also reducing the size of my business and am looking forward to a reduction in tax returns that I prepare.

Each year you are provided with a copy of your return and all original documents that you provided for the preparation of that return have always been returned to you. If you require a copy of any return or work paper, my fee is $1.00 per page plus sales tax. If you need any copy, please call my office at the above telephone number to make arrangements for those copies.

I am required by law to maintain copies of any tax return that I prepare for a period of three years. Your prior years returns have been archived in safe storage and at the end of three years I will destroy those copies.

I thank you for the opportunity to have served you in the past and wish you success in your future pursuits.

[zeros]

What Kind of Client Was He?

By the way, exactly how bad was he? Why don't you want to prepare his return?

[oceanlovin'ea]

Better fit

One enrolled agent that I know, who by the way is the most positive person I have ever met, has a very nice way to fire a client.

She tells them that she feels that there would be another tax office that would be a better fit for them.
Of course,there is more to her letter but that is the idea.....try to make it a positive exit.

Linda

PS: If I find the copy of what she said, I will add it to this thread.

[Burke]

The only time I have used a "firing" letter, it was much along the same lines as Jiggers posted here. They were S-Corps and I had numerous problems with them, mainly bookkeeping (or the lack thereof) and ignoring my written advice and instructions about a lot of things. So I made an administrative decision as many on this board have done, that I would no longer do S-Corps unless I (or the clients' in-house employees or paid outside service) did the bookkeeping -- which I did not want to do, and, as suspected, neither did they. I had declined taking any new ones for several years prior.

[luke]

jiggers

excellent letter (vague enough but to the point) - make sure that once the client is fired - he's fired (no negotiating to "take me back")!

[kpangelinan]

My letter is simple....Your fee has been increased to $1,000 per month with extra fees for corporate and personal tax returns.

Hahahahaha....this is one way I've done so in the past.....aside from your own liability from a deadbeat client, if you charge enough, it eventually becomes worth it (most of the time).

Kurly you want to be careful how the letter sounds to the client (after all an unhappy ex-client will tell so many others, then they will tell others, etc)
I have tried to make the letter sound like the client's return was 1. now more complicated than I like to do? 2. would require too much "research" on my part? 3. fee would be too high and you dont want client to have to pay that much? 4(one I dont like to use) I'm "scaling" back and only doing simple returns now ....

I agree you have to be careful.

For several years I have prepared your Federal Income Tax Return, Form 1040. Please be advised that effective with the filing of your 2009 Federal Income Tax Return in 2010, I will no longer prepare your return.

I have decided to change the type of returns that I prepare and specialize in other areas of taxation and complexity. Your return does not meet this type and I must reluctantly resign from preparing your returns in the future. I am also reducing the size of my business and am looking forward to a reduction in tax returns that I prepare.

Each year you are provided with a copy of your return and all original documents that you provided for the preparation of that return have always been returned to you. If you require a copy of any return or work paper, my fee is $1.00 per page plus sales tax. If you need any copy, please call my office at the above telephone number to make arrangements for those copies.

I am required by law to maintain copies of any tax return that I prepare for a period of three years. Your prior years returns have been archived in safe storage and at the end of three years I will destroy those copies.

I thank you for the opportunity to have served you in the past and wish you success in your future pursuits.

This is a great approach.




We have to scale back every single year so that I can properly manage my new business, ie, continually getting rid of bad weight, still take on good new clients or manage the current ones that are growing and taking more time. I do this however because I do not want to add any more employees than what I currently have.

I have 3 letters I send out every year.

1) small increase in fee letter
2) large increase in fee letter
3) fire

Here is my fire client letter:

Dear Customer: November 24, 2008

The new tax season is fast approaching! In order for us to continue providing quality service to our community, Tax Resolution Specialists (TRS) will be implementing changes in our business practices effective January 1st, 2009.

As you may know, we have seen considerable growth since establishing our practice in Franklin County. Due to this increase in demand, it is not possible for us to serve all of the clients we have in the past. Regrettably, this means that we will no longer perform your tax services.

If you (or your new accountant) are in need of support in preparing your 2008 tax paperwork based on our work from previous years, we are pleased to try and assist you. A fee will be charged for phone consultations and for the release of any paperwork generated by our office. Phone consultations may be setup by appointment in 15-minute increments, and must be prepaid via cash, credit card or debit card. Paperwork reproduction fees must be paid prior to its release. The current rates for both of these services is $160 / hour, with a minimum 15 minute charge.

Please note that all past due accounts must be brought up to date before any additional services, including the release of paperwork or phone consultations, will be rendered.

We apologize for the inconvenience this may cause you. Thank you for your past patronage and we wish you all the best this upcoming year.

Warm Regards,

Ken Allen


Hope this helps. Firing clients (getting rid of dead weight or non-profitable clients) is a must in managing a good practice. Good luck.

[Roberts]

Hahahahaha....this is one way I've done so in the past.....aside from your own liability from a deadbeat client, if you charge enough, it eventually becomes worth it (most of the time).

This has always been my approach. I had a small business client that I was charging a fair sum but her constant negativity drove me crazy. I raised my prices by over 3x what I was charging her previously and she agreed and said I was worth it. Maybe it's just me but it's amazing how sweet that negativity sounds now. It's pretty rare that I ever complain about clients these days.

[kpangelinan]

This has always been my approach. I had a small business client that I was charging a fair sum but her constant negativity drove me crazy. I raised my prices by over 3x what I was charging her previously and she agreed and said I was worth it. Maybe it's just me but it's amazing how sweet that negativity sounds now. It's pretty rare that I ever complain about clients these days.

1) You're worth the price....a good thing...says a lot about your work.

and

2) I've also found they're willing to pay the fees because you're the only one willing to put up with their crap....also a good thing if it's profitable!

[geekgirldany]

I don't think I have ever sent anyone a letter like that. Most of the time I call them and just say "I can't do your return. It is much too complicated for me to complete. You need someone with much more experience." This is of course when they brought their returns by to be prepared and I found out later I don't need them as a client. These are great letters to send out to current clients though.

I had one client that had several rental houses. I told him if he brought his returns in late again (first of April) I would not be able to complete them and would need to do an extension. Well here he came the first of April. Told him and he said fine. But his partner in the rentals was wanting his returns finished now. Client told me if I could not finish them before the 15th of April then he would go to his biz partner accountant. I told him he might want to do that if his accountant can get them done quicker than I can. I told him he could come by anytime to pickup his paperwork. He seemed surprised I told him that. I believe he thought I would say I would get them completed. He went to the new accountant.... I am grateful he did because I did not want him as a client any longer.

[JohnH]

Excellent decision. Let the client control your time once and they will quickly develop it into a habit. I'll bet if yu gave in on the completion date, the odds are pretty good he would have been hassling you over the fee once the work was completed. Especially since he had his partner to blame it on.

No offense to anyone on this forum who owns rental property, but my general experience with people who own multiple rental properties is negative. Cheap, demanding, and act as though everybody owes them something.