For those of you working from a home office...

[Beth]

I'm still a newbie, and could use some guidance.

When you have someone call (not currently a customer) at this time of the year, and they want to review their W4 witholding and some other things (they hav enot specified what), how do you handle these type of calls/appointments? DO you do a free consulatation for say 30 minutes, bill for your time, screen or collect additional info before seeing them...

This might seem like an odd question, but I really have not had calls like this off season, and this is not referral from an existing customer.

Thanks!

[Joe Btfsplk]

Off-season consultation

Generally I try to answer their questions on the telephone or by e-mail. Normally I do not charge, but may increase my fee the next time I do their tax return if they take up too much time.

[Corduroy Frog]

Try To Avoid

Beth, I try to avoid calculating withholdings for W-4s, and only do them if customer insists. Here are a few good reasons:

1) Extremely speculative. When it doesn't give the client what they want, then you are the one who gets blamed for it.
2) Generally you get the request from one-half of a husband-wife team. You get the data from one of them and not the other. Almost worthless.
3) Can become time-consuming and there is, as you say, a resistance to charge for this.
4) If you are dealing with this in July and August, only a cathartic change in withholding will be effective for the current year. Then in January, part of the change will need to be reversed on their W-4 again.

There are more effective ways of dealing with the issue. Easiest way is to check the prior year return and check their refund or amount due. If this is significantly different from what their target is, a fixed dollar amount is better than playing with status and deductions.

Let's say the couple owed $1,000 and they would rather break even. Simply sign up to an extra $20 per week between them. Even the annual changes in withholding every January cannot defeat a fixed dollar amount.

Clients who have huge fluctuations from one year to the next should be dealing with their liability with estimated taxes instead of playing yo-yo with their withholding.

[Chief]

Checking for New Clients

Beth, I would raise another issue for these kind of call ins. Get the person"s identity checked before meeting with them in your home. A quick call to the local police for a criminal background is in order. Like it or not we live in a different world today. You have every right to be suspicious of strangers in your home.

[JAinNC]

Beth,
Chief just wants you to be careful with unknown people in your home. And if you are alone you should be.Get a security system with an instant alarm or a big dog, OR a big dog bowl and a recording of a barking junk yard dog.

To your question. I get all kinds of questions this time of year. Some of them turn into good clients. I agree with C Frog about withholdong advice. You need the entire picture to offer advice. If you have time ask them to get their return and read you some line numbers as you ask and input into your tax program or on paper,
If you don't have the time, have them make an appointment. If you are not really busy, act like you are. For instance, if you have an appointment at 3pm with unknown guy. Tell him you offer 30 minutes free consult for prospective new clients and over 30 minutes is $30-50 per hour (or whatever your rate is. Give the impression to the unknown guy with the appointment when he gets there that you have a group of people coming for an appointment around 4pm.
[This is not a lie - this is protecting yourself]
For instance ... you say to the unknow guy "Please excuse the stack of books, papers, or notebooks on the chair or table -- but I have an appointment at 4 with several members of an organization."

[JohnH]

I'd add something

"...I have an appointment at 4 with several members of an organization - the Fraternal Order of Police"

[JAinNC]

I almost added

...... that .... but isn't it unethical to name one client to another?

You may think I am kidding, but Many years back in my home office - if my husband was not home and I had a night appointment with an unknown person, I did say things like I have a meeting with the ownwers of a partnership or something to get them on out by a certain time. (People used to think if you work from home you can visit all night) If I felt uneasy - I knew where the gun was.
One man in particular scared me silly ..... I really was afraid. It turned out later he was just very nervous and he and his business are great clients today.

The only one I ever really demanded not come back in my business again (who marched in with cowboy boots and got up in my face hollerin') was a woman. I am still scared of her. She was crazy.

[JohnH]

Is it unethical?

Is it unethical to name one client to another if the one you name isn't really a client?

I've already lied about the appointment, it's just a matter of how big a whopper it's going to be.

[oceanlovin'ea]

Work from home

I work from a home office. Fortunately, my husband is ALWAYS home at night. But he really doesn't like me having night appointments so I don't unless necessary.

If this person wasn't a referal, how did he get your phone number? Do you advertise in yellow pages or some magazine?
That is one reason I haven't done that kind of advertising. I want to be able to select my clients.
I think all my clients have come from referrals or a couple from ads I put in retirement newsletters. And I think at this point I genuinely like almost all my clients.

Does your phone ring a lot? Mine does and sometimes it seems when a client comes in, everyone I know calls. You might tell a neighbor or a relative to call you 15 minutes after that stranger comes to make sure everything is going okay. If you want to get rid of him, just ask the person on the phone to hold a minute and tell the person you are sorry to cut their visit short but this is a long distance call you have to take.

Linda F

[JAinNC]

John ....

Ethics doesn't count when you are scared the boogie man will get you. I am now too old to worry about the boogie man or being alone with most clients. (They are probably more scared by me) Just trying give some suggestions.

I bet you never walked out of a building at night alone and hollered but to Buster and Tom to bring the gun ... so if anyone is hiding behind a bushes they think twice before they grab your purse and steal you car. Now that's a Whooper and I'll admit it...... But it is not unethical ..... it is called being smart... Yeah it does form a picture in your mind and you are already laughing. I am always glad to give somebody a laugh.
Laughin' is not unethical either. I'd put a smiley at the end but I don't have time tonight to look for a smiley to put here. I have an appointment with my husband and that the truth.

Jeannie

[oceanlovin'ea]

Wish I had thought of that

the night I got mugged coming out of H & R Block at 9:30 at night. My daughters walked out ahead of me and got to the car and as I locked the door, he jumped out of the bushes and grabbed my purse and knocked me down.

When I screamed, my 4 foot 7 inch 20 year old daughter took off chasing him. Police caught him a couple of blocks away.

Linda F

[JohnH]

I agree

Jeannie:

I agree completely. - I'd tell any lie necessary to keep from getting mugged.

BTW, basic smileys are easy on this forum. You can enter the old-fashioned ":" and ")" and it will substitute the icon

[JAinNC]

Thanks John

for the information.

Jeannie