Sending Organizer to Problem client

[Joe Btfsplk]

I just came up with the idea of sending an Organizer to reduce the hassle of dealing with a problem client. I have never used organizers in the past since people would either ignore them or feel like they were doing the work I should be doing.

However, with a problem client, instead of dropping the client, I could tell him that I will do his return IF he will fill out the organizer. If he chooses to go elsewhere, I would not be unhappy. If he fills it out, then I would check it against supporting documents and, in case of conflicting information, I could easily identify and explain anything he was likely to question.

One other problem with organizers is that if you mail them to everyone, few will complete them. But with clients who have email, it would be less of a problem than folding all those papers, stuffing all those envelopes and licking all those stamps.

[veritas]

We do it a little differently in that we have always sent out organizers. With a problem client we turn that feature off.

[Gene V]

One other problem with organizers is that if you mail them to everyone, few will complete them. But with clients who have email, it would be less of a problem than folding all those papers, stuffing all those envelopes and licking all those stamps.

I send organizer to all my clients, 99% of my clients bring the organizer with them to their appointment, the ones that don’t have them fill out, I go over it with them, mainly because I use the organizer as my input sheet.

My software has E-organizer; I use them the first year they came out with poor results, probably because must of my clients didn’t have computers, I may try it again, since more people have computers now days.

________________
Hughes Airwest
Top Banana in the West

[veritas]

Gene,

Did you work at Hughes Airwest?

[BOB W]

Organizers

I have been using tax program generated organizers since 1986. Every year it was the same old routine that took days of printing and weeks of packaging. Not to mention writing a cover letter taking about new tax issues and talking about problems area, like stock sales. Then finishing up with my appointment hours and cutoff date for doing tax returns. I was so board with this project that in 2002 that I decided to just send the cover letter.

Well, I got phone call after phone call complaining that they need the organizer to review what they needed. I told them, "but you never bring it in for your appointment", most said "yes but I use it every year to get me started, it is a great reminder".

Who knew! Well since then I found that there is a secondary value to the organizer, one that goes beyond our selfish needs, the clients needs. Besides, I couldn't trust my clients input entries anyway, I needed to work from original documents. But that is me.

I do all tax returns in one sitting with the client. Many of you do it in a multi-stage process. To each their own. And maybe the double and triple check process is important since several people are involved with each return within your firm. I prefer that I do each one from soup to nuts myself. The time I save, to me, is cost effective.

The Organizer for me is an alternative advertising tool at the right time of the year. Many new clients that are referred will ask for a blank organizer before they come in. I always require that each client review the Yes/No questions page and to bring that with them to the appointment, that is critical. 75% do bring it in, if nothing else.

What seems like a waste of time really isn't and it develops a feeling of caring for your clients, that you went through so much trouble just for them.

[Gene V]

Gene,

Did you work at Hughes Airwest?

Veritas,

I started with West Coast Airlines in 1965, then they merge with Pacific airlines and Bonanza airlines and became Air West, then Howard Hughes bought them and rename it Hughes Airwest and then Republic bought Hughes Airwest and finally Northwest Airlines bought Republic. I stayed with them all for 34 years.

You can hear the Yes commercial by going to this web site http://www.hughesairwest.com/

[Jiggers]

Problem Clients

I just fire them! I send them a letter, usually in late November or early December, telling them that my business structure has changed and they no longer fit the type of returns that I prepare. I thank them for their past business and wish them well in the future.

What change in business structure? I no longer handle P*I*T*A clients! So you are not lying to them!

I send only a few organizers. To those that I know will use them and do use them. If I send an organizer and the client doesn't use it, they don't get one next year.

I add $2.50 per page of the organizer to my fee. I then give a 20% discount if the taxpayer uses it properly.

[Uncle Sam]

Sending Organizers

I do like Jiggers - send to only clients that have used them in the past. I also send them to last year's first-time clients. If they don't use it, I don't send it to them next year.
In my cover letter, I send to all clients in January, I do state that if I haven't sent them an organizer and they want one to call and request one.

[Bees Knees]

everyone needs to use organizers

Even if most of your clients do not fill out organizers, it is a good idea to use them. The reason is you cannot be expected to ask a client every possible question that may affect a client’s tax return.

It is part of our due diligence to inquire about possible tax situations that need to be addressed on their tax return. Clients do not know everything that may need to be reported on a tax return. The organizer is designed to alert clients and the preparer to possible new situations that happened during the year that were not a part of last year’s return. For example, say the client exercised stock options for the first time this year, and is close to being subject to AMT. The client doesn’t understand AMT. And nothing in the paperwork is going to indicate to you there was a stock option exercised. Yet you as the preparer have to report that on the return for AMT purposes. If the IRS later audits the client and learns of the stock option that kicks the client into AMT, you as the preparer could be liable for negligence penalties.

Having that question on the organizer notifies the client that the information needs to be discussed with the preparer. If the client does not answer the question because the client never fills out the organizer, the preparer can use that as a defense against any negligence penalty. The preparer can show IRS that due diligence was followed. It is not the preparer’s fault that the client ignored the question and didn’t reveal necessary information that was needed to prepare a proper return.

[Armando Beaujolais]

However, with a problem client, instead of dropping the client, I could tell him that I will do his return IF he will fill out the organizer. If he chooses to go elsewhere, I would not be unhappy. If he fills it out, then I would check it against supporting documents and, in case of conflicting information, I could easily identify and explain anything he was likely to question.

What will happen is the client will make an incredibly lame attempt, fill out a couple of lines like name and address, and then say "I didn't understand, etc." and you'll be right back where you started.

There have been several occasions where I directly mailed a specific client demanding certain information to be presented in a certain way. My batting average this these clients is .000. They will absolutely not do the work as long as they can manipulate someone into doing it for them.

[Jiggers]

And, you know......

.....clients that can't fill out an organizer cannot do their own return. More dough for us.

But, the IRS is pushing free e-filing, do-it-yourself. The IRS could probably knock a big dent in the national debt by auditing those that file their own return, either e-filed, or on paper. But they won't go after those that e-file wrong data because that would hurt their free e-filing!

[Joe Btfsplk]

Organizer

The specific client I had in mind probably would fill out the organizer. He might even like the idea.
Some of the comments to this indicate that some clients might like the organizer even if they do not fill it out since it reminds them that certain things have a bearing on their return. Once I had a client who had a child born during the year and forgot to tell me. This might alert her that such an event affects taxes.

I'm considering send them to all for whom I have an email address, explaining that it is not necessary to answer all the nonrelevant questions such as whether they adopted a child, etc. which are not frequent events.

[sea-tax]

I send out organizers to every client and I agree with what Bees said I think it is part of our due dilligence. If the client does'nt fill it out I have them at least fill out the questions page of yes or no and have them sign it. One question I have is did you take a ditribution from a retirement plan? if they check no and then later find out they did I can feel good about charging them for a 1040x and if they complain I can say here you said no so I didn't ask.
I have however started to use the Lacerte shortened version which is only like 5-6 pages. I found that I had better response with this than the original 10-12 page organizer.

[veritas]

We do the same a Sea-Tax. Maybe I could be a branch office? We also send engagement letter along and make them sign it.

[Jim R]

Organizer

I send a 2 page organizer to all my clients. Most of my clients don't use them so I can not justify the postage a multi page organizer would require. Being only 2 pages it is more of a checklist.

I also figure that if a client can handle a multi-page organizer that acts as a input sheet for the tax software, they might start thinking they can buy tax software and do it themselves.