How to regain trust and confidence with a frustrated client?

[FEDUKE404]

Banking on optional client coverage

Block is not the only "store-front" operation to offer that type of option.

For certain (complex) returns, as well as for certain clients, it could easily be money well spent. (Many professional tax software packages offer a similar "audit protection" type product.)

The problem I saw was the situation where the manager pushed each preparer to offer the optional protection, even for the simplest of returns (think W2 only returns).

At one time the preparers where I worked received a separate "reward" (dollar coin or two??) for each plan purchased. The bulk of the clients, when properly interviewed, would say something like "I don't think I need that" or "I trust you!" (which I always took as a compliment). Where things got interesting was most of us, especially those with "established clients," would get enough coins with each paycheck to perhaps purchase a nice lunch, while one preparer seemed to leave everyone else in the dust for the "rewards" accumulated. Turns out, upon review, the preparer was essentially automatically including the extra fee on virtually all returns prepared. Every now and then a client would say "What's THAT??" and the "error" would then be corrected. It goes without saying that the EITC crowd, who essentially weren't paying anything for their tax returns in the first place, were prime targets for this preparer.

There was also a lot of mutual back-scratching going on (manager and preparer both "looked good") but after a few "Why can't you folks sell XYZ as well as Joe does?" the entire situation became an irritation.

FE

[ATSMAN]

This is a question for folks who have worked at HRB for a long time. At what point in the tax prep process do you push the taxpayer to buy the "Peace of Mind" contract?

I would think if this conversation came up right at the get go, some taxpayer may have some doubt about the "skills" of the tax preparer. But if you charge them when they are about to pay the fees and get out of the store it may be an easy sell?

[Snaggletooth]

Like Buying a Warranty

The Block practice of charging $35 is similar to buying an extended warranty when you buy a product. Example, on a $2000 lawn mower you can buy additional warranty coverage for appx $300. I have had salesmen more interested in pushing the extended warranty than they were in selling the product itself.

If I charged $35 per return, and paid out all additional tax to customers that was my fault, I would make a ton of additional money every year.

[TAXNJ]

Excellent

The Block practice of charging $35 is similar to buying an extended warranty when you buy a product. Example, on a $2000 lawn mower you can buy additional warranty coverage for appx $300. I have had salesmen more interested in pushing the extended warranty than they were in selling the product itself.

If I charged $35 per return, and paid out all additional tax to customers that was my fault, I would make a ton of additional money every year.

Excellent point. Business is business especially when one is confident and knows the quality of their service

[Rapid Robert]

At what point in the tax prep process do you push the taxpayer to buy the "Peace of Mind" contract?

Usually it's near the end of the process, when the signing and fee paying is about to happen. Unless they've changed, client must accept or decline POM offering in writing, and if accepted, acknowledge which categories of tax docs they brought it (to avoid the easy cheat of not bringing in an income document and then later claiming you did). I recall client also has to pay the actual tax up front, then wait for reimbursement.

[Gretel]

Check Marks

I was taught to check mark on the client form each form that I processed. Then I scan these forms and give them back to the client. That way I always know what went through my hands.

Just now I am dealing with a letter audit for a client who missed to give a W-2 form that I could not have known about. Even after he talked with the IRS and realized this, he sent me the IRS letter (out-of-state) along with all the original tax forms, still stapled together. I didn't even occur to him that that form was NOT part of the pile of the original documents. In addition he did not give me form 1099-SA, didn't think I need it and did not mail me back the organizer asking about this. Mind you, I am not sending out complicated organizers, only questions to not miss something important.

[WhiteOleander]

I work in a H&R Block franchise office. We do offer the Peace of Mind service. The program covers more than just paying for a preparer error. If the client is audited for any reason the audit is handled at no charge. As everyone here knows, taxpayers can be audited for any reason at anytime. If they have not purchased this program, they will have to pay us to assist in the audit. We would review the notice and advise them what needs to be done. However, under the Peace of Mind program, we will handle everything. If we have to go in person to the audit and represent the taxpayer, that is also covered under the program.

In our office, we do not 'push" the program on anyone. We do offer it to everyone. We explain the benefits and shortfalls of the program. In this office, our manager pays one half of the premium and the client pays one half of it. It is a good program for most, but not all, of the clients.

[kathyc2]

I had prepared a 1040 return for a client this past season.

What can I do to make it up to them? Make them pleased with me? I want to take ownership of it but I'm worried I've lost credibility and their future business.

I handle such items by doing what I would expect if I was the client, and then going a little beyond. In a case such as yours, I would refund the processing fee since the return was not correct and pick up penalties and interest. That should keep the majority of clients happy, but if it doesn't this may not be a client you want going forward.