Why deal with stimulus issues?

[taxea]

Whenever I get a question from a client re the stimulus I refer them to the IRS. This issue has nothing to do with the preparer other than filing a return for those who are eligible for the payment....whether or not they get the money is totally up to the IRS and they should be contacted directly by the taxpayer if any questions arise when the taxpayer doesn't get what they expected or doesn't get anything.

All I can do is research the website or call the IRS...which the taxpayer can do without my assistance or paying me for the additional service. taxea

[erchess]

My two cents

People can file their own tax returns with help from the IRS or after doing some reading. What you gain by paying a professional is time freedom and the assurance that the professional has a smaller chance of making a mistake than you do. However doing your own taxes is not at all like removing your own appendix - a feat hardly anyone could do.

As a customer if my tax professional seemed reluctant to assist me with my stimulus payment I would find another professional.

[JohnH]

I initially had the same attitude about it not being my problem, but I've come around to the idea that a small investment of time & effort on my part yields a significant amount of goodwill with the client when there is a problem. There really isn't much to do other than a quick lookup on the web site; beyond that it's up to the client to call IRS to get more info.

I agree with erchess - the rebate has become quite an emotional issue for taxpayers, so if they perceive that their preparer isn't interested, they may show their displeasure by leaving when next tax season rolls around.

[thomtax]

I agree with John. I don't have a large business and most of it is because I will talk to them if they have a problem. If I don't want to help, then I have lost the goodwill that helps make my business.

I know if I were a client and was told to "do it myself", I would be an ex-client. I try to treat people the way I would want to be treated.

LT

[taxea]

why deal with stimulus issues

it isn't a matter of goodwill with the client...I explain why my involvement in this issue after the return is filed is not in their best interest. I charge for additional work that is not due to an error on my part. Why should the client pay me to do the research for them when they can get clearer information by contacting the IRS directly?
It is time consuming...not 10 minutes..the initial call from the client, the research with the IRS, the return call to the client....and not cost effective...the expense me and the client

[taxea]

PS How can you lose a client's goodwill when you explain why this is not an issue you should be dealing with?

[S T]

Stimulus Calls

Well I agree with John and ThomTax posts, I think we need to offer that extra service to our clients. Most of the clients that are calling are ones that you only hear from at tax time. So I don't really mind. Except that one client that just decides to "blame" you for everything wrong in his life!

What I do mind is the client that calls (that I talk with at least once a month) , that has been paying attention to all of the news media, etc, and then really "rakes" me through the coals because his "Stimulus Rebate" was not the full amount based on what he "wanted" to hear. Not like he didn't know his income was going to be over the threshold and possible rebate reduction.

"Your are my accountant and tax advisor" and you should have told me that I was going to receive less than! (or not receive anything at all) "t/p - I counted on the extra $650 that I did not recieve" on, on, on, on,

Me, I am only the messenger, and maybe a problem solver, I didn't make up the rules, qualifications and restrictions.

Some days are just not worth getting up in the morning!

Sandy

[S T]

Address the clients Needs

I think our long term clients look to us to make sure that IRS is correct. T/P freak when they receive any kind of notice from the IRS.

In this case of the stimulus rebate, a lot of erroneous notices were sent out and now some clients are receiving less than they should, more than they should, or nothing at all.

It has already been stated, that on the 07/08 Stimulus Rebate there are errors, so who is the client to call and rely on. Wouldn't you think it would be whomever they trust to prepare their tax return. Wouldn't that be "YOU"

Most of the calls only take abut 5-10 minutes, most all of the information can be pulled up online, so what is the "big deal". I do it as I am talking on the phone and asking about how the family is! That is goodwill toward the client, they probably won't receive that from another "fast track" tax service that pops up once a year and closes down the rest of the year, and doesn't even have recall of who the client really is. No personal touch, isn't that what we are trying to convey to the client, that we care!

Personally, I don't mind a few phone calls, then I get to chat for a minute or two with the client, and believe me that client will remember that I took the time!

It is "GOODWILL".

Sandy

[erchess]

All I can say is that

when one contacts the IRS or a State or Local income taxing agency without using the PPL Line or its equivalent, there is normally a long wait to talk to someone. Also, people find the idea of talking to someone from a taxing agency intimidating. Between those two factors, nearly all the taxpayers I have dealt with have been willing to pay my fee for being there with or instead of them every time a taxing agency needed to be talked to. Your population may be more self reliant generally or more knowledgeable about taxes than mine. Certainly if I did taxes for a tax professional who is retired or simply doesn't handle professionally an issue that has come up in his personal life, I might offer to let them handle a simple call to the IRS to check on a refund.

[myerstaxes]

They Call Me

and I answer the question...I pull up their file and tell them what the stimulus calculates to be and why they got a lesser amount...I tried to tell them when I gave them their return, but sometimes they were not listening, plus I gave them a sheet to show them the calculation...Anyway, they are listening to their friends who got the maximum amount, or who also have eligible kids...I usually get them off the phone in 5min...No problem, they feel better, and I have a happy client who will tell others how wonderful I am...

[OtisMozzetti]

Wiser ways to charge clients for valuable services

All of this discussion seems to boil down to tax practitioners wanting to receive reasonable pay for valuable services provided to clients. What we all really need are wiser ways to be of use to clients, along with wiser ways to get properly paid for the work done.

[taxea]

That's what I'm saying, Otis. I try to save the client money...so why should he pay me to get from the IRS what I have to ask the IRS for. The stimulus is totally out of my control and if the IRS didn't give them what they thought they should get then they should talk to the IRS directly, that doesn't cost them anything.
If I didn't make a mistake on the tax return the client pays me for any additional work. This would be a waste of their money and I am not out to gouge them for something they can handle themselves. taxea

[taxea]

I don't charge my clients any time of the year for advice, but I don't consider this issue advice...it is time consuming and not worth what they would have to pay me for the extra work. Ergo a direct referral to the IRS. When you think about it there is nothing in the tax return that has anything to do with the stimulus payment other than the return has to be filed to get it.
Therefore I do not believe this is a tax preparer issue.taxea

[AZ-Tax]

Nothing but a headache

The IRS sent out duplicate checks, they sent a check to a client of mine for which my tax software indicated he was not entitled to one, one of my clients wants to know why his rebate check was not direct deposited when he owed taxes and paid via check, why did my friend with kids receive more, etc. etc. Another client wants to know why his friend received his check over a month ago and he is yet to recieve his. I even had a taxpayer call me out of the blue about his rebate check wanting to know where it is as I am suppose to have the answer based only on his first name. The IRS should be paying us to to answer questions. Why didnt the IRS just add the rebate to the refund or lower the tax liability to those taxpayers that qualify. Saved on mailing, answering questioning etc. Yeah I tried to answer their questions the best I could but my answer is subject to change depending on what the IRS does next.

[JohnH]

I've already posted once on this string, but I'll add a comment about how I believe answering the questions can be beneficial in a broader sense. When someone calls, I click on the "Where's My Stimulus Payment" on one screen and call up their return on the other screen. By the time they've finished their sentence, I've already entered their filing info, I have the IRS reply displayed on my screen, and I hit the "print" button. I then ask the client for their email address. While I'm telling them the result I found, I also tell them I'll email them the link to the IRS site so they can keep tabs on it themselves in the future if they need to do any follow-up. If the amount is reduced, their return displayed on the second screen so I can usually explain the reason.

When the conversation is over, I place the printed result in their file for next year's reference. I send them a boilerplate email I already have in my "drafts" folder with the IRS contact info, and they now have my email address which my boilerplate encourages them to use if they have future questions about this or any other tax matter. (This is the most beneficial aspect of the entire exercise, IMO) Aside from gaining a little client goodwill, I've taken another important step toward getting them to use email for any tax-related question they have in the future, which is my main objective. An emailed question can be answered in a fraction of the time a phone conversation takes and it can be done at your leisure, so nudging clients in the direction of using that mode of communication is extremely efficient in the long run.

All in all, it took me 3-4 times as long to type this email as it would take to accomplish everything described above.