Problem Clients

[Black Bart]

What to do with them? The older I get, the less inclined I am to put up with absurdity and arrogance.

I caught this oddball case Saturday morning: A young woman, 25 or so, walked (no car) to my office carrying a handful of 2006 1040As from the post office. Says IRS contacted her (doesn't have letter) asking for 2000 through 2005 returns. Claims to not know why, since her only income is from Social Security benefits (she looks like a marathon contestant) AND some "investments" she disposed of AND she also sold her house in California (for how much I don't know -- we never got that far) "a few years ago."

Anyway, she's serenely self-confident, a tad "pushy," and has set her head to comply with their "strange" request by marking through '06 and numbering the forms '00 through '05. Our conversation:

She: I've filled these out to the extent that I can. Now; I'd like to know how much you would charge to check them and see that I have it done correctly.
BB: Uh, well, see; you can't use those forms.
She: I don't know why not! I've written in the correct year on each of them.
BB: Well, lots of reasons. Tax laws change every year. Those '06 deductions are no good for the other years and that form's okay for interest and SS, but not for capital gains, house sales, and maybe whatever else you have.
She (exasperated): I just want you to check them. It's simple!
BB: I don't think so, but anyway I don't have time to do it. In a week, we'll be swamped and working in a dead run. I can't put off regular customers and dig into those old years right now, and I'd have to charge you a lot more than you would want to pay. I suggest you go down the street to H&R Block or Jackson-Hewitt where they have a larger staff and may be able to accommodate you (that's true).

So, is this excusable or what? She's got a problem and I feel like I ought to help the dope (I guess she's probably broke or she wouldn't be hoofing it), but there's no gratitude and even less money in these things. I've done lots of this junk over the years and almost every time, I end up getting tied into a huge mess of unanticipated consequences.

[Taxman]

Best

thing to do is send her on her way. She'll only take up alot of your time and probably doesn't have enough money to pay you anyway. Nice job in referring her to H&R let them deal with her.

[Brad Imsdahl]

I don’t “check” returns. My policy is to charge full price to re-do each year on my own system with my own software, even if the client’s self prepared return appears on the surface to be correct. The client would have to fill out an organizer for each year answering questions on each organizer. I would also probably explain that I charge more for prior year returns, as they take more time to dig up all the old information that needs to be addressed on a prior year return.

[BOB W]

Ah, the ........

..... no car walk-up. On several occassions when a walk up shows up at my office, I make it a point to see where the walk-up goes when leaving my office, 9 times out of 10, they parked their car a block away. It is usually a Caddy or some other new expensive car. Now I don't know if that reason is because they are reporting low income or to make sure I don't charge a larger fee.

I have a feeling it is all about fees.

[oceanlovin'ea]

Another reason

I don't have walk up clients coming ot my home. A least if some one calls on the phone or is a referral, you can put them off before they get to your office.

I wouldn't want to deal with that situation right now. She didn't seem to want your expert advice, just do what she wanted you to do.

Linda F

[Kram BergGold]

You did right

Black Bart,
You acted correctly when you explained to her that you could not take her on because she was not a match for your practice. You made it about you and not about her. My guess is you are in your fifties or older and have been in practice for more tha 20 years. Your feelings are a natural progession and you should listen to them. They will never steer you wrong.

[jainen]

you are nicer than me

>>I'd like to know how much you would charge to check them and see that I have it done correctly.<<

Since she already filled everything in, I would have just charged her $10 per form (in advance) to check them and see if she did them right. You did everything she asked for free, but you are nicer than me.

[TMI Moderator]

I never check returns. It's the same deal as when they started electronic filing and people would come in with returns completed by hand and ask you to e-file them. We did that - for about one day.

It takes longer to "check" a return and correct the errors (how many think the return will be correct?) than it does to do it from scratch. So you charge a minimal fee to check a return, you find something wrong, what do you say?

"This return has an error."

"What's the error?"

"I won't tell you."

Or you do tell her, then that will lead to telling her the proper means of reporting. Let's say she corrects the problem and comes back in. Then you continue checking the return. There's another error. You've already spent more time than it would take to do the return in the first place.

It's a terrible idea to check returns. I do the whole thing from scratch or forget it. I tell folks that a large part of my fee is based on the responsibility I have as a preparer. If I look at the return, I'm on the hook.

As far as the pushy lady who hasn't filed forever, she's trying to make her problem your problem. She survives in this world by shoving her way to the front of the line and intimidating people. Unless you just don't have enough stress in your life already, get rid of her now while it's still an easy thing to do.

[DaveO]

I would have done the same thing

Or else she could wait till after Apr 15. Also when a bunch of back years are involved I like to get a POA and go on E-services and pull the wage and income transcripts to be sure everything is on the return.

[OldJack]

I would have suggest she go to the IRS and let them do her taxes unless I wanted to get even with HRB for their attitude and advertising in the community. No way would I have accepted checking her returns or doing her returns.

[sea-tax]

BB I tend to agree with all the others. I think the way you handled it was great. Life is just too short to deal with people like that. Another reason I enjoy working for myself , I choose who I will or will not work for.

[jainen]

appointment for next week

>>people like that<<

You guys are tough. Here's a totally clueless taxpayer of independent means, desperately up against the wall with the IRS, coming to you with at least a thousand dollars worth of work. Wouldn't you collect a hundred bucks immediately to take a P.O.A. and pull her records and notify the IRS that she needs a 120-day extension? Then give her seven organizers and make a one-hour appointment for next week?

[JoshinNC]

I agree with Jainen, unfortunately

Just because she acted like an ***hole doesn't mean she couldn't be a paying client. Get the retainer, get the POA, figure out what she needs done, double your fee and lay it on her. Maybe she learns a lesson, maybe you get a new client. Either way, you did your job and kept your pride.

[Jiggers]

Agree

Just because she acted like an ***hole doesn't mean she couldn't be a paying client. Get the retainer, get the POA, figure out what she needs done, double your fee and lay it on her. Maybe she learns a lesson, maybe you get a new client. Either way, you did your job and kept your pride.

I agree with the above two posts. I do turn away potential clients that may prove to be P*I*T*A's. You start with a fee up front to review the work. If they balk at that, "adios"!

The key is to make them do the leg work and organize their information. Don't let them bring you a box load of paper that isn't organized. Unless you have the time and I usually don't have the time.

[JG EA]

I think you did right

If it feels like a nightmare it probably is. You followed your instincts honed by years of experience.