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I agree with Jack and KC. This wasn't a matter of fee size - it was about control. She wanted to exert some control over you by setting your prices. If you had given in, then every future interaction you had with this no-class client would have been on her terms. Next thing you know, she would have been calling you demanding all sorts of favors, free tax consulting, or just wanting to brainstorm something with you. The fact that she engineered the conversation in the manner she did tells you all you need to know about her character. Besides, I don't believe her story about being audited six years in a row with no changes. There's more to this than she is telling you. You can't avoid situations like this in the future, because there are plenty of ignorant loudmouths out there. Best thing to tell them is that you also do charity work, but you make the determination about who gets the charity and they don't fit the profile. You're much better off without her and people like her as a client.

Ignore her ignorance and sleep well. She is trying to intimidate you. I do NOT provide e-file service for self prepared returns. It is just as much work as preparing it from scratch. You are better off without her as a customer. Maybe you could call her and ask for some legal document or work at a seriously reduced price because you have looked up and researched all the information.

I'm with Lion in that I won't efile a return that I haven't prepared and agree with what the others here have posted. There's more going on with this woman and her return. Be glad she left your office. If she had her return completed by hand without using a software program, she would have been exempt from the e-filing requirement in NY. Why didn't she just mail it herself?

No, Naveen, the fee you quoted is, if anything, low for a return with a Sch C, even without the Form 8839 adoption credit form and New York State return. In AR, I normally set $300 as my MINIMUM for any Sch C. And then when it's an attorney, there are some special issues of when income is recognized, when they should issue 8300s and/or 1099s, trust funds, etc. Be glad this PITA client did not take you up on it. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Attorneys-Audit-Technique-Guide

Good question. I think she wants a preparer's name on the return, probably with no questions asked. And none of the reasons I can think of are positive. Sadly, if she looks around long enough, she will find someone she can bully. Hopefully their E&O coverage is good.

I won't efile a return I haven't prepared. But, if she insisted, I'd probably have quoted her a really high price so she would be the one to decide not to continue. I think $250 is fair or low. You're better off without a control freak. Be relieved.

When you are done with him, can I have a go? I promise to leave *something* for proper legal prosecution. Mostly. And I won't use anything but my hands, elbows, knees, feet, etc. -- no outside sources of persuasive assistance.

I have over 60 online sites that I use in the course of a month for all my personal, church and clients. I will spend hours changing all of them as well as informing all the associated people as well. Just give me one hour in a room with the hacker. He will have a mind changing life altering experience.

I think we've answered Naveen unanimously, so I don't think I'm hijacking this thread. The larger issue is the entire matter of clients who are in a hurry and need things done their way. When I first entered this business and for many years thereafter, I saw this type of client as a challenge and an opportunity. My thoughts ran along the lines that I would solve their problem, they would be impressed with my responsiveness & efficiency, and I'd have a client for life. I'd say that happened in maybe 5% of the cases I encountered. For the remaining 95%, few of them cared beyond the initial grateful "Thank You's", and most really aren't impressed by our responsiveness - they just know that this appeals to our egos sometimes and so they use it to their advantage. Looking back, more often than not there was some hidden agenda or undisclosed problem that came back and now it was my responsibility to fix it. (Or at the least I had to sweat it out for 3 years). In one or two cases, when all the facts became known it turned out to be a scary situation (another story for another day). In any event, I learned by hard experience to resist EVERY request to do something quickly and/or on the client's terms. If they're in a big hurry or need things done to their specifications, then they need to find someone else. Fees are a small part of this issue, but sometimes they even try to use the fees as a smokescreen to take your focus off the bigger problems. If there's a legitimate need to do something with a quick turnaround or to accommodate the client, I think we are usually in an infinitely better position to judge than the client. And when our instincts tell us to refuse to compromise (as did Naveen's in this case), we should definitely follow those instincts. Based on my experience, I'm guessing there's only a 5% chance that our instincts are wrong. Pretty good odds IMO.

The second question is "Where's the coffee pot?" There is a critical interrelationship between the two inquiries.

No need to file an amended if you have not filed an original. An original filed return will supersede the return created by the IRS. However, it is far too late to expect any refund. However, if the client owes tax, he will be liable for it. Offer in Compromise will not even be considered until ALL returns are filed up to date.

Sara, as a tax professional for over 35 years, I'm well aware that the IRS does not use it's full power too often. However, sometimes they do. I hardly need to watch commercials to know that. But that was not my point, anyway. My point was that the average person IS scared of the IRS. Surely, if you've been in this business very long, you know that many clients panic if they get a letter from the IRS unexpectedly? It is that which makes the IRS Scam so effective.

I totally agree. One of the most unbelievable things she claimed was the "IRS has audited her for all those six years and they could not find anything wrong with her work." NO ONE [except certain government officials, for legal reasons] gets audited 6 years in a row if the first 3 are 'no change' audits. Indeed, normally two years of no change is enough to get the t/p a pass for several years. No wonder Naveen's 'spider sense' was tingling.

But you missed the point in the original post. In this case, there IS a significant error in the SFR so a correct original should be filed. Then, the amount owed, if some is still owed, can then be negotiated.

I have yet to see an SFR that was correct. This is the reason to file the original return.

It is really astounding how much pain the edge of a fingernail, pressed into the base of a cuticle, can impart. Just fyi.

FIRST OF ALL THE term is 4/2/13-3/31/14. Unless you choose a calendar year. if the expenses were incurred in 2014 then file a none return for 2013 and put the expenses on 2014 filing as a calendar year return. Otherwise you can do as you say and file now for the fiscal period claiming the expenses.

What the IRS did was prepare a Substitute for Return (SFR). What you want to do is prepare a 1040 and not a 1040X. There are special addresses that SFR'd returns should be mailed to. If it is mailed to the normal address for returns in your area, it will eventually get to the ASFR Unit, but it will be delayed and this could cause problems for your client if the IRS is pursuing collections. You can get the address from the IRS PPL line.

I made the mistake of talking to ATX and some person remoted in and reinstalled 2013 now I have to reset all my users and settings and print packets and so forth. I could track him down and beat him with a wet noodle.

Exactly, John!

August 1, 2014 By Edward Mendlowitz One time I was working for about a month at a client that was a stock broker. Throughout the office were signs that said P&S with arrows. When I got started on the account, I did not pay much attention to the signs. Instead I concentrated on learning what to do and then doing it. After a couple of weeks I looked at one of the signs and had no idea what it meant, never coming across anything referring to it. After about a month, my boss met me at the client and wanted to discuss my work and go through the work papers. I had kept him informed of my daily and then weekly progress and he felt I was on track, but now he wanted to do a thorough review. While he was with me, I asked if I could ask him a question and he said OK. I asked, “What does P&S mean?” He replied, “Purchases and Sales.” At that point I felt really stupid and told him so. He told me, “You shouldn’t feel so bad. It could have been much worse. I just asked the client that question!” This taught me that early on you can ask as many questions about the business and operations as you want, and it won’t reflect poorly on you. It might even enhance your reputation for thoroughness. However, when you ask a question about something you should know, after you have been working on their records for a period of time, you look foolish, amateurish and/or stupid. The takeaway is to ask about everything you can possibly think about when you first get the client and ask right away whenever something new arises.

The first thing I usually ask is "Where's the restroom?"

MASEA included the following in today's e-newsletter: IRS Warns Of Increasingly Pervasive Phone Scam The Internal Revenue Service is warning people of a sophisticated and aggressive phone scam targeting taxpayers, including recent immigrants. IRS officials said people have been reporting the aggressive phone scam over the last several months, and victims said they're being threatened with being deported, arrested, having utilities shut off or having their driver's licenses revoked. The callers are frequently hostile and insulting, which is a way to scare their potential victims, the IRS said. IRS officials said they will let people know by written notification by the U.S. mail if you owe taxes, and the IRS would never ask for a credit card or bank account number over the phone. The State Attorney General in Connecticut has also recently stated that these types of phone scams have become increasingly pervasive over the last several months. Scam victims are encouraged to report calls to the Treasury Inspector General for Tax Administration.

You are correct. However, the other questions about "Did you have proper coverage for all of 20XX?" can only be documented with a form from the Insurance Company. 1095-A The only requirement for the insurance companies to issue 1095-A forms for 2014, are those that provide coverage to clients purchased through the exchanges. Everyone else is expected to answer the question based on the honor system. 2015 ALL insurance companies will be required to issue 1095-A forms to all insured. In addition, 2015 all employers that provide insurance will be required to give all covered employees Form 1095-C. This shows how much is paid for insurance coverage by the employer for the employee and how much is paid by the employee through withholding.

I should have said... "The only insurance companies REQUIRED to send documentation, are those with clients acquired through the exchanges. Other insurance companies can, but are not required to until tax year 2015. Tax year 2015 ALL insurance companies will be required to send documentation to all insurance customers.

Within the IRS, there is a “Political Activities Referral Committee” unit. If you don't know what it is, go to the Politic forum to learn about something the IRS has been keeping secret until it was discovered in a court case. Billy Graham is one of their targets, btw.