8879 but no payment

[BHoffman]

I received form 8879 from a client but he neglected to include a check for my fees. My letter states in bold letters to include payment in full with the signed and dated forms 8879.

Am I required to efile his return?

[thomtax]

If your policy is not to file until receiving payment, I would not file until the payment is received. They have not completed their part of the transaction. I would contact them to inquire about it. I have, myself, sealed up and mailed something and later find the check still laying on the desk, so it could be an honest mistake.

LT

[Bees Knees]

I know of no rule that requires you to file a return for a client prior to getting paid. The only thing you are required to do is give back all of your client's stuff even if you do not get paid.

[Larmil]

I received form 8879 from a client but he neglected to include a check for my fees. My letter states in bold letters to include payment in full with the signed and dated forms 8879.

Am I required to efile his return?

I would get another signed 8879 when client pays the fees. I would not file the original 8879, You are signing it as 'paid preparer' which you are not in this case. OTOH, if I know and trust the client I would file the original 8879.

[luke]

with apologies to my Asian friends - "No ticky no washy"

[BHoffman]

I know of no rule that requires you to file a return for a client prior to getting paid. The only thing you are required to do is give back all of your client's stuff even if you do not get paid.

Thanks! He has all of his originals back. The only thing missing is my fee.

[Black Bart]

Say Bees,

I know of no rule that requires you to file a return for a client prior to getting paid. The only thing you are required to do is give back all of your client's stuff even if you do not get paid.

Is that for sure on givin' their stuff back? I'm having a dispute with a client who owes me 400 bucks and I'm pretty sure she's going to demand her papers back without paying me a dime. I had planned to tell her to go fly a kite and she'll get 'em back only when I get the fee in full.

[S T]

It is for sure

I had an experience with that in "Court" many moons ago" and the Judge chastised me for not returning the client's working originial documents, and then chastised the client for not paying me, for my finished product (which happened to be accounting) I had the documents at the courthouse and turned them over, and the client paid me on the spot.

We can not hold client original documents (as in their paperwork) for payment

Sandy

[Gretel]

We can not hold client original documents (as in their paperwork) for payment
Sandy

But some clients think we can. One of my client switched (he owed me for ongoing QB consulting) to another accountant and never paid my final bill. I still had some of his papers and he wanted to come by and pick up. A year went by and he never did and I had given up on getting paid.

Then I changed my mind and send him a statement with interest charges, of which he paid half accompanied with a letter that I didn't do any work for him after a certain date, which was not true. Since files had been sent by him using the accountant's web feature I easily had proof and send him a letter, refreshing his memory.

He must have been embarrassed since he paid the remainder of my invoice plus interest charges. I was very surprised. He never asked for his papers, so I mailed them. A day later I got another check for the postage. You never know, but I know he thought I can hold his papers.

[dsi]

Why not put his original papers in a box and send them COD for $400.

[oceanlovin'ea]

Unless this is a new client or you have reason to think the client is trying not to pay you, I would just pick up the phone and call and say I got your envelope with the signed 8879 but the check wasn't in the envelope. Did it get left out by mistake? (allow for his answer). Then tell him as soon as you get the check you will transmit the return.

If he is in a hurry to get his refund, he will be running to PO to mail you a check. But give him the benefit of the doubt.

Linda, EA

[ttbtaxes]

It's an ethical violation to retain a client's records until we're paid. It's looked at by the outside world as extortion.

My policy has always been that if a client doesn't want to pay me for my services they can have everything back and have a nice life.

Nowadays, every family has an attorney. It would be your bad luck to have that client's sister/attorney get a bee in her bonnet and sue you over a measly $400. That would be a reportable event to your malpractice carrier.

What would happen if, in the confusion, the client's return never got filed and it caused a penalty or precluded an election on an amended return? Nothing good can come of holding up a client's records.

I'd suggest to just let it go as aggravating as that can be.

[Jiggers]

You have to return the original documents (1099's, W-2's, client's work papers or organizer), but you do not have to send the finished return or your work papers that you generated.

I had a partnership years ago that didn't pay me, and I returned all the bank statements and other original documents. I should have been paid, but his daughter was my secretary then.

Two years later the partnership was audited. He came to me with a $20 bill to "pay on account" and could I give him copies of my work papers since he was being audited and he threw away all his bank statements and other stuff. I refused the $20 and refused to give him any of my work papers until his bill was paid.

He refused and went to another accountant to handle the audit, who required payment up front.

Why he wouldn't pay me I will never know.

[taxman36]

Our Policy

is to only accept credit cards for out of town or mail in returns before we start work on them. Last year we got burned from one guy that came in and we did the return he was not happy with results so just wanted his stuff back. I gave it to him but told hime he still owed me for my time which he paid. Now for all new clients we take a non refundable depoisit before we start the work and if they do not like the result see ya later but no refund.

I do not know why people seem to think in our industry that we are at their mercy and always looking to get something done for nothing. I could not ever think of going into any professional business and trying to get them to discount their fees then not paying them. Maybe they think that we are just doing this part time for the extra money but I know that I need the money to live on all year.

Just a few thoughts.

Taxman36

[Black Bart]

Paying up

I received form 8879 from a client but he neglected to include a check for my fees. My letter states in bold letters to include payment in full with the signed and dated forms 8879.

Am I required to efile his return?

I don't think you're required to, but I don't know** if you're required to. But either way, he wouldn't get it done 'til I got the dough (he could plead obstruction and I could plead ignorance).

Maybe an oversight; maybe not.

**Aw, let me revise that -- knowing IRS it's probably almost a sure thing that you have to send it in and they'd say your bill collectin' is another matter (your problem -- not theirs).