I have a (now former) client. Mid way though the 4th quarter last year they decieded that they didn't need to pay payroll taxes anymore. The result is I have 941/940 I filled out for them that they are refuing to sign. My question is this, should I just mail the unsigned forms into the fed, or should I just inform them that they are required to sign and mail forms? Basically, what whould you say is the extent of what I should do in this situation?
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you get paid for the work?
chris -
Most of it. I still need to know what to do with the 941/940.Comment
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Your responsibility is to client only. Do NOT go "over his head" and mail an unsigned 941 or 940 to IRS.
To do so would open you up for a lawsuit I expect.
Sounds like a building contractor I once had. About middle of year someone told him he could treat his employees as sub contractors instead. So his last payroll sometime in July was his last for the year. I of course read him the riot act, and end of year he furnished me list of payments to each since tht last paydate and 1099 misc were prepared and distributed.
Guess what? The year after next here comes the IRS audit. Two and half years worth.
don't have to tell you about the "reaming".ChEAr$,
Harlan Lunsford, EA n LAComment
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Send them a letter stating that you have their 941/940 forms completed, the amount they still owe you, and they need to pick them up on or before January 31, 2012. If they do not pick up the forms you are not responsible for any penalties or interest they may incur.
Send the letter where they have to sign for it so you will have it on record.Comment
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Overkill, dany. First I would not bring up subject of nonliability for interest/penalties; that just might give them food for thought . you know how SOME people are. grin.
Secondly, if a fellow owes me, I'm certianly not going to spend $5 plus more on him to register a letter.ChEAr$,
Harlan Lunsford, EA n LAComment
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I will have to respectfully differ slightly (or maybe not so so slightly) here. If the reports are already prepared, I would most likely send the client the reports with an invoice. if he doesn't pay, I'm no worse off than if I withheld the reports. It's interesting how some people will carry on about not filing or paying a particular report, but when it's there in front of them in black & white they don't have the courage to refuse to follow through.
If he doesnt file, later gets into trouble, asks for help, and if I should decide he's learned his lesson with IRS & happens to be worth working with in the future, it's easy enough to demand full payment plus a retainer for any future work.
If he never files and never pays, I'm still finished with him. He has the reports in hand, so it's clear he can't try to blame me for his stupidity. Plus, the unpaid invoice stands as a barrier preventing him from bothering me in the future. If he has the temerity to call me for any reason, I can cut him off by insisting that he pay up before we discuss anything else.
I think giving him the reports with an invoice covers all the bases, irrespective of what happens next.Last edited by JohnH; 01-23-2012, 11:03 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Well I learned my lesson last time about holding on to finish work papers. I had a client's lawyer to call wanting me to pay for half of interest and penalties. Yeah I know how some people are
It might put an idea in their head. But I would rather cover my bases with a $5 letter then get harassing phone calls later wanting me to pay the penalties and interest. Atleast I would have proof they received a letter stating it was on them not me.
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And send your invoice with a due date in 15 days. If not paid send a 2nd demand for payment with a paragraph that states the overdue payment is subject to civil action if not responded to promptly.
I would attach the IRS reg to the 941/940 letter and include in geekgirldany's suggestion a paragraph that states you are willing to file the forms upon payment of your fee if. after reading the law, he relents.Believe nothing you have not personally researched and verified.Comment
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And sometimes it's worth the loss to just say good riddance!Comment
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For all the thoughts about what the preparer should do - who was it that refused to sign?JGComment
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