Let's Be Honest!

[ddoshan]

Tax season can be a busy trying time of the year. Many of us prepare 2 to 4 hundred returns a year. Maybe more for some. We deal with all sorts of situations and often with clients that are not all that easy to deal with.

Be honest ... do you sometimes weaken and do something or give in on something you know you probably should not have. Something that just isn't quite right but you basically surrender just to get the darn return out of the way. Maybe pretend you didn't hear something the client may have mentioned. Personally I think it is just about impossible to get thru a tax season without having completed some returns that you now wish you could go back and do a ReDo.

Have to go just got a walk-in!

[Snaggletooth]

I'll be Honest

Doshan, I'll be honest but I don't really think I do give in.

I'm not going to say it's never happened, but I would rather send a pushy client down the road than
to deal with him/her. I've got a full slate of wonderful people for the most part.

Lest I hold myself on a pedestal of moral purity, I do believe there is a secondary reason I don't give in.

Already I am on the liberal side of what I will do to maximize tax benefits for my clients, but will stop short and
not be pushed into a forbidden area. I make a reasonable effort to research cites and IRS publications,
but will not back off a liberal position just because someone might interpret a cite differently. I will post a
situation that illustrates this before the day is over.

And I do not AUDIT my client, in spite of the IRS efforts to try and make us do so under the guise of "diligence."

From some people's perspective my clients are already getting half a crook, I guess. They know better than to
push me too far because beyond the line in the sand, I really DON'T give in.

[taxxcpa]

I take the information the client provides, but will question something that seems totally wrong--like a guy who claimed a lot of mileage to check on a rent house in another county. I explained that it seemed unlikely that he would make two or three trips a week to check on the house.

But I've had other people whose information seemed a little hard to believe and who were audited by the IRS with no significant changes resulting from the audit. If the IRS couldn't catch them in an audit, why should I have to do it with "due diligence?"

[LCP]

How about the other side of the coin? Clients who can't be bothered to put a little effort into their responsibilities.

How much effort do you always put forth trying to pry info out of them that would reduce their liability?

[DaveO]

How about the other side of the coin? Clients who can't be bothered to put a little effort into their responsibilities.

How much effort do you always put forth trying to pry info out of them that would reduce their liability?

If a person is respectful of my time and appreciates my efforts I will go the extra mile. Those who whine, complain and generally are a PITA will get less effort.

"I think you could save you some tax if you provided me this, but if that's too much trouble I'll prepare your return as is."

[taxea]

I go up to the line and will do something that may be risky but only 1. with the client's approval and 2. only if I am confident that I can justify the position being taken. I will not disregard the law for anyone and I just tell them I have a license to protect. I would rather lose a client that expects me to do something I know won't fly than appease him. My reputation and standing with the tax agencies means too much.

[John of PA]

One must be very careful about "giving in". If a tax preparer gets a reputation for "giving in" it will only lead to more client coming to him for that reason as people tell people. A "don't ask don't tell" situation should be avoided at all cost in tax preparation as well as other professions.

[geekgirldany]

Yes do not put yourself in such a position that new clients come to you expecting you to give in.

It is a long story but I had it happen to me with a heavy cash based business. He told me a item was sold in 2012 but I found out it was really sold in 2011. He brought a relative with him and relative was wanting to move income around from 2012 to 2013. I said I could lose my enrolled agents license for doing such a thing and he was putting me in a bad position. Well client spoke up and said "you did it for me last year". I was totally surprised and explained what I was told regarding his return. I finally told them both to leave.

People will work you and you should never give in.

[oceanlovin'ea]

cartoon

I saw a cartoon on Facebook the other day..."On the Mark" It has a guy sitting at his computer and says "Gilbert has reached a pivotal moment on his tax preparation software". On the screen it says "How much jail time are you willing to serve? Multiple choice - check one a) 1-2 years; b) 2-3 years; c)3-4 years or d) 4-5 years."

I said "I am not willing to serve any jail time or pay any fines or penalties for ANYONE".

That is how I feel. I will do a tax return that gives my client the best return but I won't do anything that is illegal. I ask if they have receipts but I don't want to see them. I have had clients who are trying to find deductions out of thin air. They just aren't there. Usually they move on to someone else. And that is fine with me.
I make honest mistakes. I posted a big boo-boo on basis on depreciation on rental property earlier this year. Now I have to fix that. But it was an honest mistake. I wasn't trying to be dishonest. And I will fix my honest mistakes. But don't hide income from me. I won't do the return. My brother wanted me to do his return and I told him I wouldn't do it because I know he has made some money on the side last year. He has been unemployed for 3 years now. If he wants to report the money I'll do it.
Another example there is a young couple who are like my kids. She was telling me that he has been selling stuff on ebay...collector items like star wars, etc. So I told her that if he makes money from what he sells he has to keep track of it and report it. They aren't necessaryily going to like me for that. And for them they really didn't know that they should report that stuff.

Wow! I am getting long-winded now too. Sorry. But this is a pet peeve of mine.

Linda, EA