Recalcitrant Client

[erchess]

I got a lead from my source of tax debt leads today and I wonder if I handled him in the best way. I would like to hear any comments.

He told me he had not filed for at least ten years and the IRS had indicated that he owed $11K. He also told me he reached out for help after calling the IRS himself and getting all confused talking to an agent. So I thought the first thing to do would be to call the Practitioner Priority Line and we did. They were having computer probs today so that took longer than usual but when I got through I found out that the only year where he had a filing requirement and no return was 2004 and besides he was in CNC Status. So I told him that he should pay me to do his 04 return and be happy with CNC Status. He said that he wanted to settle the debt for less than what he owed and he indicated that he could borrow from friends and family to get the needed money. I know there's a lot of work in an OIC so I told him I would need $3K up front and it would take at least 18 months and no promises on the outcome. As I expected he told me that he didn't want to do that so I gave him the phone number of the nearest Low Income Tax Controversy Clinic and told him they might be able to help him. I hate giving up a client but this guy seemed unlikely to pay me very much and honestly I wasn't sure he was being straight with me about his situation although I really can't put my finger on why.

[jimmcg]

I got a lead from my source of tax debt leads today and I wonder if I handled him in the best way. I would like to hear any comments.

He told me he had not filed for at least ten years and the IRS had indicated that he owed $11K. He also told me he reached out for help after calling the IRS himself and getting all confused talking to an agent. So I thought the first thing to do would be to call the Practitioner Priority Line and we did. They were having computer probs today so that took longer than usual but when I got through I found out that the only year where he had a filing requirement and no return was 2004 and besides he was in CNC Status. So I told him that he should pay me to do his 04 return and be happy with CNC Status. He said that he wanted to settle the debt for less than what he owed and he indicated that he could borrow from friends and family to get the needed money. I know there's a lot of work in an OIC so I told him I would need $3K up front and it would take at least 18 months and no promises on the outcome. As I expected he told me that he didn't want to do that so I gave him the phone number of the nearest Low Income Tax Controversy Clinic and told him they might be able to help him. I hate giving up a client but this guy seemed unlikely to pay me very much and honestly I wasn't sure he was being straight with me about his situation although I really can't put my finger on why.

Good move........You will never recover your investment in time from a client like this. If you decide otherwise do not make a move without a sizable retainer up front (& future reainers as necessary) and a firm engagement letter.

[FEDUKE404]

And then...

Any person, regardless of the reasons, who has not filed an income tax return "for at least 10 years" is not a client I would pursue.

Reminds me of some of the bugs that would come out of the woodwork around April 10th when I was once employed at one of those "store-front" operations.

But more power to you if this is your choice!

FE

[taxmandan]

If you want to do representation work that's pretty much the attitude most of the folks you will get calls from or meet with for an intact interview. My experience is that 3 out of every 4 chronic non-filers who profess to want to get back in compliance will not result in an engagement. I had two calls from such in early April, and neither one showed up for their appointments. I wasn't surprised, they're flakey or they wouldn't be in this situation. Every once in awhile someone really does want to get things fixed and those clients are great to work with and a retainer makes me diligent about helping them. But, if they do show, and exhibit an attitude like this guy, I would do exactly what you did and send him down the road, he won't be worth the bother.

I won't make any special effort to meet with them for the first interview, ie. on a late Saturday afternoon or any other day that I'm not already scheduled to be in the office. Then the no-show isn't such a big deal since I know it's likely to happen and can plan other work to fill the time.