Some client's Have

[S T]

Some client's have a lot of "?"
Long time client, not really a difficult return, but time consuming in gathering info, employee business expenses with reimbursements, always gotta ask for the DMV fees, and the charitable, then
always have to calculate two ways, do we claim the kid that is going to college, or don't claim. Should the "ex" claim or not claim.
then always work the "kid" return as well, which has Investments and Sched D

So a lot of time and effort - and I probably never charged enough but always an okay reasonable fee.

So for 2010 - knew they were late in responding to the January Tax Letter, finally received an email today - "Oh times are tough - spouse laid off of job - so we decided to prepare our tax return on turbo tax claimed the "college kid" - he still has a return to file, how much will you charge to do it.

I really don't know how the parents filed, this kid as a dependent would be questionable if a dependent - has worked and also has investment income - so it is always iffy year to year whether he qualifies. For 2010 he is age 22 - however the other side is a split parenting with support from the "other side" and then the Investment Income Account for College and Expenses.

Duh! - I always discounted the fee on the "college kid" return, even though it had Investments and Schedule D - tandom to the parent return

Like this is really an option for me now?

My thought is "good luck to you on Turbo Tax" and if you want me to prepare the "kid" return --- you just lost your discount and it is at the going rates --- all being presented nicely of course. I would also like to preserve the client returning in 2011, but once they have a taste at Turbo Tax" my thought is they are pretty much a lost client, until an audit arises.

Thoughts from anyone on how to handle this one? I am not responding to emails until such time as I see some wisdom postings from the "virtual water cooler"

Thanks,

Sandy

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[Bert73]

This sounds like two of my clients, with all the scenarios you have to compute. If they only knew the time we put into coming up with their returns.

As for your client going with Turbo Tax, they will be back. I look at this situation as a win win for you. Charge the kid what you would charge anyone else, no discounts. Then next year when your client needs you again, you can charge what you would charge anyone else no discounts.

Just think of it as wiping the slate clean!

[AZ-Tax]

Please dont mistake my kindness for weakness

Had and still do have a client who wanted me to run it both ways (w/kid w/o kid) and I charged. Husband not to thrilled I charged but wife understood but I could sense the tax preparer & client relationship weakened a little. I also market auto/home ins and each year I ask them if I can quote their auto/home ins. The wife wanted me to qutoe but the husband was NO. Employer cut back on husbands hours but I honestly feel, and I think most of you will agree on this board that had a client go thru a financial downturn due to this or that, the client just expects us to help them financially by discounting them even further. Yet, when those same clients go to the local grocery store, gas station etc., NO discounts.

I say it again, Rodney Dangerfield...Mr. I get No respect.. must have been a tax preparer in his earlier life.

I asked my wife, should I have a sign made "Please dont mistake my kindness for weakness" and hang it on wall behind me so my clients can easily see it. She looked at me like, your kidding?

[kpangelinan]

Your thoughts are just fine and what I've done in the past....just charge the kid normal fees.

[JohnH]

I don't always practice what I'm about to say here, but I try to remember to do this. Whenever I discount a fee for any reason, I try to remember to bill it at the full rate and then enter the discount and the reason for the discount on the invoice. (ie, "Discount for college student child of established client....") That way, if the reason for the discount goes away, there's already a built-in notification I can refer back to. I also try to tell them in advance, before beginning work on the return, just so there aren't any ugly surprises.

Anyhow, given Sandy's situation, even if I hadn't called this out in previous years invoice, I'd have no problem tellng them that the kid's return was discounted in the past because of the client relationship with the parents. Given that the return will be more difficult to do than in the past by some degree, the fee will naturally be higher. If they don't understand, then you don't need the kid as a client.

[tpnl]

You could . . .

charge full price for the student return and offer a partial discount to the parents if they return next year.
Not exactly the same thing, but I had a lady in over the summer. Amended her state return that was self prepared with several errors. (She got a letter from the state of the deficiency) I told her if she were to come in and get her 2010 return done, I would discount the $50 she paid for the amended state. She came in, her return was $175 after the $50 discount.

I figure as business is slow for me in the summer, if I could get her to come back, maybe she will be a long time client.

[WhiteOleander]

Well, the thing is, you will have to have the info from the parent's return to do the student since he is under 24. That new kiddie tax will kick in won't it?

[Burke]

I would agree to do the kid's return. Require them to bring in the TT return, offer to review it for errors -- don't you just bet you will find something -- and then you might have them back and an amended return to boot. Just got a new customer, brought in last 3 years, 2 from HRB -- and one he did himself on TT. The TT had 2 errors, he is now getting a $170 refund from 2008.

[Burke]

........ always gotta ask for the DMV fees ...................

You can deduct DMV fees in your state? Or did you mean Personal Property Tax?

[S T]

Mis stated

For Calif always referred to as DMV fees - as Calif has one bill, that is broken down with Registration, Smog, CHP etc (which of course are non deductible) then another line entry for the VLF or what is commonly referred to in Calif as the Vehilce License Fee which is a deductible personal property tax.

Now in NC I have two bills one for DMV registration which is nothing com[pared to Calif, and then the Personal Property Tax Bill that is separate and still less than Calif.

I still have one foot on the West Coast and another foot on the East Coast, so ------



Sandy