OT: Returning Paperwork Charges

[geekgirldany]

I always call and tell a client how they are coming out on their tax return before printing. I do this so if they change their mind about having me prepare it I am not out anymore time in printing and compiling the return. I know I am out of the time preparing the return but if they feel that way then I do not want them as a client.

This year I've had several call me back after the return is completed/printed wanting their info back. One told me they would see how it comes out on TT and come back if there was no difference.
I am having so many that I feel like I should charge for the time of preparing the return.

I would like to find out if any of you charge for your time before returning the paperwork or just take the lost time.

[oceanlovin'ea]

New clients?

Are these new clients? I hope your returning clients aren't treating you like this. I haven't had anyone do that to me. That would drive me crazy.

In view of the circumstances, I think I would tell new clients that there is a time charge if they take back their paperwork. Say it in a nice way of course. Or when they call, tell them you have spent this much time and your time charge is $XXX.

I did have one guy last year that I didn't finish the return but I spent an unbelievable amount of time compiling information on it. I charged him for the time I spent and he paid it. But it was an s corp return with a lot of issues from the year before.

I hope this doesn't continue.

Linda,

[geekgirldany]

It is returning clients but they are newly married. Husband or wife thinks they will get more back with TT. Which of course they can if it is manipulated the right way. Plus clients that fellow employees tell them "I am making the same as you and got back a lot more". Maybe it is just that people are getting desperate for money, I don't know.

These are simpler returns but it still takes time preparing the return and scanning. I am leaning towards charging them. If it was a new client I would charge if a lot of time had been put into the return like you spoke of.

[David1980]

I think the issue holding the taxpayer's documents ransom for payment is they belong to the taxpayer. Reminds me of this incident when I worked at H&R Block. We would require the taxpayer provide identification when picking up their returns. Well, one taxpayer left their documents with us to prepare the return and then decided they didn't want us to do it. So they came back to pick up their documents. Without any ID. Being a large office the person who took the documents wasn't there so nobody could verify this person was who they said they were. We didn't provide the documents as we couldn't verify the taxpayer was in fact the taxpayer. Taxpayer calls the cops, who come. They seem rather upset with us for holding taxpayer documents ransom until we explained the taxpayer had no ID. End result is the cop told the taxpayer to get their ID and the taxpayer did and it was the right person and they got their documents back.

[geekgirldany]

Yes, I don't believe in holding their papers until I get paid something. Just mention I would appreicate payment for time spent. If they say no then I would still have to give them their papers back. Just hope that a few would be kind and understand the time that goes into preparing a tax return.

What you mentioned about the Block makes me think. I've never done this before but I need to start scanning in new client's license. There is so much ID Theft going on I really need to do that. I only get SS Cards and that can be faked now too so I need to step up on that.

I do have a client sign a tax papers release form so they sign that they got back all their papers. Although rough having the cops called I can understand the Block's policy.

[appelman]

I don't think you are allowed...

...To hold their paperwork ransom. At least enrolled preparers aren't.

[tpnl]

We have a charge . . .

of $50 if we take the time to enter the information and the client decides to not finish. Agree with others that you cannot hold their papers. We usually have this only happen with prosepective new clients, but we try our best to weed out price shoppers. We give an estimated price range for new clients. If I feel they are a risk for me spending the time to enter all the information, I will remind them of the charge before I do the work. However, I have never had anyone actually pay when they don't finish with me. They always say they will come back next week when they get paid.


I did just have the other day clients that were new last year ask a bunch of questions on how much the price would be this year. Husband had been filing their return MFJ, but when I did it last year, it saved them almost a thousand dollars by filing seperately. We charge for both returns on a MFS. We discount the second return, but for some people the psychology of having to pay for both is more than they can handle. I told them I would be happy to check prior years to see if they could have saved by filing seperate. So this year, he was all concerned, I told him I would do it for the same as last year on the MFS, but if MFJ was better, they should see their bill go down over last year. He called the next morning and said we charged too much and he would just file it. Thankfully, I have not yet had a chance to work on the return.