Why deal with stimulus issues?

[Lion]

Customer Service

I have the type of client that comes to me to save them time. They do call with questions, and expect a little hand-holding. I try to charge enough for returns that I can answer questions, deal with an IRS letter, etc., at no additional charge. I've tried to build in an "explanations" charge into my fees, whether we sit with the final tax return to discuss what to do in the coming year or whether I respond to their calls or e-mail over the summer. It's easier for me, too, if they feel free to call me with questions BEFORE they get deep into something with tax consequences. And, billing them for small amounts is time-consuming, especially if we deal via e-mail or phone. As long as I can charge enough that I don't feel put out when they call with a question, we're all happy. And, if the research or calculations do take longer and I feel they've had their share of "explanations," then I tell them my charges.

[ChEAr$]

Most definitely a matter of goodwill

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

Perhaps I'm not as busy as some (I'm not, since I'm in a "retiring" frame of mind), but
people talk and clients tell others how response (or not) we are.
Even for some of the routine items that are not due to an error on my part, my time is
free. My father always said that people like to get something free every now and then,
and he was right. (About a LOT of things, actually!) One of his favorite books back in
the 1930's was Dale Carnegie's How to Win Friends and Influence People." Here is
one way we can do that, unlike the "big box" tax preparers.

[DaveO]

I'll error on the side of customer service

I spent the time to educate myself about how the payment worked and explain that the majority of taxpayers will get a reduced amount or none at all. I also question the wisdom of borrowing $300 billion from China to send everyone to Walmart. I also explain that this, much like every other government program, is handled poorly and the public is given misleading or wrong information.

[FEDUKE404]

In most cases - a non-charge inquiry

Most of my clients' questions have revolved around "Joe got his - where is mine?" and the most frequent confusion is the direct deposit folks vs the check folks.

At the time I prepared the original taxes, I attached an insert in their folder stating what the predicted amount would be. I also later cut/pasted IRS payment schedules and e-mailed them to my clients. Barring any "forgotten" debts, those numbers are generally holding true so far as I know.

I guess I just don't adhere to the "it takes a lot of my time and I'm going to charge them for it" mentality. (I get very upset when my attorney bills me $20 to send an e-mail that says "I got your letter" or something similar.) All questions I've received so far have been easily resolved by reviewing the frequently changing payment schedule, using the IRS "Where's my stimulus?" web site, or just telling folks some late-filled returns have to be processed. Also, per the IRS schedule, as of this date there still are some pending payments for the "paper check" folks. Until all scheduled payments have been processed, and the postal service has had sufficient time to deliver the checks, a prudent person should simply wait. It's not unlike filing a tax return on April 10th and then getting upset when the refund check is not in the mail box on April 16th.

As one poster stated, typing this little blurb has taken far longer than answering most stimulus inquiries I've had from my clients. Especially in the off-season, I consider this a client service and would never think of billing for it. In the long run most clients appreciate my approach to matters of this type.

FE

[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.

[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.

[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

[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

[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.

[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...

[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.

[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

[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

[taxea]

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

[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