8879 but no payment

[Black Bart]

All good points, T, and

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.

I've never sued anybody yet for a fee -- if they don't pay I write it/them off. The question has to be: "Is it worth it?" Most of the time, the answer's "No."

But...here

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.

is where we part company. I don't believe it's an ethical violation on MY part to hold his records until I'm paid -- I think it's an ethical violation on HIS part to not pay me for the work.

Nor do I think the outside world looks at it as extortion; but rather an objective party (not IRS who simply wants returns filed and preparers' welfare be ****ed) would call it a deadbeat SOB not paying his bills. And if a "new" morality deems it otherwise, then black is white and the world's turned upside down.

[tpnl]

No respect

People don't respect us because of all the advertising for "Do it yourself" products. Quickbooks, Free efile, etc.

We provide full service of monthly accounting, payroll, tax prep. However our tax prep business is going down. People call or stop by and say "HOW MUCH DO YOU CHARGE" Then reply "Why is it so much, I can go online and do it myself."

We are not alone, real estate professionals and attorneys are also feeling the hit. People sell their own homes and you can get fill-in the blank wills and POA at Office Max.

[taxea]

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.

Where does it say that the 8879 has to be signed and dated the day it is filed. It is just to authorize the filing. So in this case the client authorized the filing and it will be done when the client pays the prep fee. Call and ask the client if they accidentially forgot to include your payment. Remind them that the return will not be filed until you are paid. Put the 8879 in your office file and keep it in the to be paid drawer. No tickee, no washee

[Davc]

The last time I looked you had 72 hours after receiving a signed 8879 to file the return. Otherwise you're "stockpiling".

[taxea]

oops, my bad....I don't think I have ever had a client sign the 8879 and not provide payment.

[AZ-Tax]

I dont think the Secretary to client relationship helped

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.

The client probably thought, hey daughter works for a tax prep firm therefore I am entitled to some freebies. Always good to have those, if any, employee benefits in writing signed by both employer and employee. As with just about every small business that deals with the public, its a numbers game. I am looking forward to the future when all paid preparers will either be a CPA, EA or Reg Tax Preparer, Cont Ed and mandatory e-filing. The self preparer has not really been my major competior, its mostly the part time preparers who prepare mostly paper tax returns.