What am I to think or do?

[DMICPA]

Have a small fee nervous type client. I do the return which contains a Schedule C. Now that I have done the return, she wants to review it first before I file anything because the "numbers are flexible" meaning she can change the figures based on the net income. This is a referral from a client so I am trying to be nice. I don't have time to re-do things. If the numbers are not the final figures, why send them to me? If the tax is too high, she comes up with more expenses and they may be legitimate or maybe not. Of course if I have to run the return several times this should not be a charge because the first time through is a trial run? Than after I finally get it done., she wants it emailed to her loan broker at no charge of course because you already have the return so just email to my loan broker. Of course if there is an audit, it is all my fault.

Is there a pleasant way to try to explain things to her? Should I tell the client that referred her about her?

[S T]

Your post is a tough "situation"

On Schedule C Income and Expense - I will only usually give a "small wiggle room" on corrections of expenses - maybe a missed deduction as in office expense, check the mileage, supplies, maybe did you miss a phone, internet, etc.

I usually provide a worksheet for them to complete first, so I can see the actual numbers client is providing and compare to a prior year, or if a first year, something does not appear correct, or is missing.

Charges I don't know - depends on time or how you charge by form

I would not be emailing anything to the loan broker, you can email to the client to forward to the loan broker. You need an authorization for -from the client to do that!

Just thoughts

Sandy

[DMICPA]

Loan Broker

That is absolutely correct. I did not do that when she requested it. I just ignored her request and figured that when she got the return, she could do it.

Sometimes during the heat of tax season, I just do things that the client wants just to get them behind me but for some reason, I did not feel that was the right thing to do so I did not do that.

[Lion]

My thoughts are very much like Sandy's on this. I'd probably tell her now that if she's interested in seeing how things are shaping up, that the time to do that is late December as she's closing out her year or early January before you get busy with tax prep -- you use the dates you'd be comfortable with. Therefore, during the heat of tax season, you will be charging $XX for revising returns starting next season. Or, offer to put her on extension so she can gather ALL of her income and expenses. Or, just put her back on the bottom of your stack each time she makes a change! (And, yes, NO emailing to third parties. Email to her to forward to anyone she chooses, or she can pick up a copy from you to deliver. If this seems to be an every year thing, I'd start charging for copies after the first copy you give her for her files.) Definitely raise her fee this year and every year.

[geekgirldany]

Be careful on the changing of Schedule C income/expenses. Like Sandy said there is a little room if expenses were missed or maybe even added up wrong. But not so much it would drastically change the out come.
I learned this lesson the hard way with a cash only business. I will not go into details but I will say if you start adjusting for her... she will tell everyone you do it... even if you acted on your best judgement.

Do not provide anything to a third party without a release and don't do comfort letters for lenders.

[Gretel]

Honestly, I would fire this client if it is not a clearly missed expense. Do you trust this client? If not you cannot put your signature on the return. The real tough situation probably is talking with the client who gave you this referral. But honestly, your license cannot be worth less than two lost clients.

[JohnH]

I agree with dismissing this client.
But you can't talk with the client who gave you the referral.
There's nothing meaningful you can say without divulging confidential information.

[Gretel]

But you can't talk with the client who gave you the referral.
There's nothing meaningful you can say without divulging confidential information.

That is true but you better think of something if the client asks. You hardly can just say: Thank you for the referral but I cannot discuss, What I would say is something like: The referral and I were not a good match.

[Burke]

If you are uncomfortable with changes (esp because "numbers are flexible") then tell her that she will have to provide you the receipts and/or documentation (i.e. mileage log) before you can proceed further with the return. That should settle it -- at least for this year. Then require it all up front if you decide to keep her next year.

[DaveO]

I'll allow about one revision for a client on a "C" usually with the admonishment that you can't change the numbers because you don't like the outcome especially if it their first time filing a "C", "E" or "F". If they try it an a second year I'll tell them they need to bring me the final numbers the first time and I won't risk my disbarment to save them a few bucks in taxes. I relate a story about an audit I had years ago. The auditor was looking through the return which was a complete mess. He looks up at me and asks "You didn't prepare this did you?" Before I could answer he turned to the signature page and exclaimed, "Oh my god, not that woman again". Needless to say a preparer project was well under way on the other preparer. I warn them that taking an improper deduction for one person puts all my other clients at risk. If that doesn't work, hand them their papers back.

[BHoffman]

DMICPA- IMHO you are too nice. I'd have probably blown up a little at a client who tells me - after I've completed the return based on their figures - that the "numbers are flexible".

[DaveinTexas]

Flexible...indeed

I would kindly inform the client that you are also flexible....and your fee is Very flexible too. Each time the numbers change, the fee changes. And each time the client makes a demand, the fee changes.

Nah, just tell the client that "I can't work with YOU anymore."