mrichman333 Posted January 1, 2016 Report Share Posted January 1, 2016 So I had a tax client that first came to me in early 2011, he needed to file years 2008-2010. He applied all his refund to his 2011 return. $29,000. He never gave me all his tax information 2011. I sent several emails asking for the information and he would respond I’m working on it or I’m just a procrastinator. This went through the year 2014. This is a recap of emails I just sent him. 6/16/2012 I sent a email asking for employee expenses. Expenses for 215 -----, Insurance, property taxes, repairs 6/17/2012 I told you I needed the expenses for your rental property and asked about your dependents. You sent a email back saying I shall claim, Abig, Donovan L. Cruz and Amanda L. Perez. I will provide you with all expenses. Thanks Abad 8/15/2012 I asked for information about your dependents 8/28/2012 you sent me a email saying Hello Mary: I am almost done with the expenses for Jet Blue and 215 Culver Avenue. I did not know it was so much. By the way how much do I have to send you so you can prepare my 2011 Taxes State and Fed. Thanks ABad I did not hear from you so on 2/12/2013 I sent a email Hi Abad, I hope everything is going well. I haven't heard from you in a while. All I need to finish your 2011 return is your employee expenses. Without that info.your refund is $29,301. I hate to see the IRS have use of your money for so long You responded the same day "Hi Mary: Hope all is well. I am well, I have been working too much. I will get that to you as soon as possible. I want to carry my refund to the next year, because I am going to sell one of my properties and expect that I will have to pay about 30 grand to the tax man. I will be in touch. Thanks Abad 7/3/2013 I set a email responding to a voice mail "Hi Abad, I got your phone call, but nit your email. I'm available any time after this week, just give me a call 4/29/2014 you sent me a email Hi Mary: I sorry about me not getting all information to you. I am trying to get it done. Thx Abad Hey Mary: Yes you need all my expenses which I am almost finished, I am just a procrastinator Sorry Abad That was the last time I heard from you till 11/14/2015 He is now past the 3 year deadline NOW WHAT Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 1, 2016 Report Share Posted January 1, 2016 He loses any refund that was due. Period. Procrastination just cost him. 2 Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 1, 2016 Report Share Posted January 1, 2016 1 hour ago, mrichman333 said: So I had a tax client that first came to me in early 2011, he needed to file years 2008-2010. He applied all his refund to his 2011 return. $29,000... He is now past the 3 year deadline NOW WHAT And it is all your fault, you know that. (/s) I would advise him to file anyway and hope for a miracle. It also sounds to me like that person was required to file, and filing and owing/not owing are two separate things. I would file. 3 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 1, 2016 Author Report Share Posted January 1, 2016 1 hour ago, Jack from Ohio said: He loses any refund that was due. Period. Procrastination just cost him. 'm worried he is going to say I am responsible Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 1, 2016 Report Share Posted January 1, 2016 1 minute ago, mrichman333 said: 'm worried he is going to say I am responsible Did you explain to him and warn him about the possibility of losing the refund or carryover as a result of missing the deadline? I would have dropped this person as a client a looooong time ago. 1 Quote Link to comment Share on other sites More sharing options...
BHoffman Posted January 1, 2016 Report Share Posted January 1, 2016 20 minutes ago, mrichman333 said: 'm worried he is going to say I am responsible Well, I am going to say that no you're not. You decide who's right It looks like you are the one who initiates all of the conversations. What happens if you just don't ever email or call this guy again? I think he'll either float away or you can pretend you don't know who he is j/k. You would certainly be able to tell him that you don't want to work with him anymore because you can't get a response. 3 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted January 1, 2016 Report Share Posted January 1, 2016 Did you have an engagement letter or some document describing this engagement? I always use them even for the most basic engagement to, well, c my a. It also lays out expectations including the responsibility of the client to respond timely. As BHoffman noted, you seem to be the initiator of all correspondence even when no reply has been received from a prior contact. It is very difficult to care more than the client, isn't it? Yet we often have that nagging feeling that somehow we will be blamed. You might want to check with your insurer for advice. I've had to do it twice in 20 years and received good advice and a measure of comfort. Yes, it might be time to fire this client but be sure to document pretty thoroughly the sequence of events, your advice and a list of tasks yet to be done for which you will no longer be responsible. Send certified, return receipt. And don't look back. If you haven't been paid, think about how much cheaper emotionally it is to be relieved of this situation. A year from now, maybe sooner, you will be so glad. 2 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 1, 2016 Author Report Share Posted January 1, 2016 23 minutes ago, Margaret CPA in OH said: Did you have an engagement letter or some document describing this engagement? I always use them even for the most basic engagement to, well, c my a. It also lays out expectations including the responsibility of the client to respond timely. As BHoffman noted, you seem to be the initiator of all correspondence even when no reply has been received from a prior contact. It is very difficult to care more than the client, isn't it? Yet we often have that nagging feeling that somehow we will be blamed. You might want to check with your insurer for advice. I've had to do it twice in 20 years and received good advice and a measure of comfort. Yes, it might be time to fire this client but be sure to document pretty thoroughly the sequence of events, your advice and a list of tasks yet to be done for which you will no longer be responsible. Send certified, return receipt. And don't look back. If you haven't been paid, think about how much cheaper emotionally it is to be relieved of this situation. A year from now, maybe sooner, you will be so glad. No engagement letter. And I did try, after a while I thought he may have hired someone else. Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 2, 2016 Report Share Posted January 2, 2016 My advice is to print out ALL those emails (from and to) as pdf's (or as paper, or both) and put them in the client's file. Should this loser ever decide to sue YOU for being the "cause" of losing the refund, it will serve as an important part of your protection. CYA, always, especially since it's the losers we chase - to help them - that turn around to blame us for their failures. 2 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 2, 2016 Author Report Share Posted January 2, 2016 4 hours ago, jklcpa said: Did you explain to him and warn him about the possibility of losing the refund or carryover as a result of missing the deadline? I would have dropped this person as a client a looooong time ago. His last email about his 2011 return was April 2014 a year before the deadline so I did not mention it. Quote Link to comment Share on other sites More sharing options...
RitaB Posted January 2, 2016 Report Share Posted January 2, 2016 2 hours ago, mrichman333 said: ...after a while I thought he may have hired someone else. 6 hours ago, mrichman333 said: 4/29/2014 you sent me a email Hi Mary: I sorry about me not getting all information to you. I am trying to get it done. Thx Abad Hey Mary: Yes you need all my expenses which I am almost finished, I am just a procrastinator Sorry Abad That was the last time I heard from you till 11/14/2015 I think you're completely off the hook as far as responsibility goes with this in the file. He is "almost finished" on 4/29/14. Well, he was almost finished! Of course he went to someone else. Or did it himself. Put it back in his lap. It's not your fault. What is wrong with people? Yes, Abad, you are "a bad" client... It needed to be said. 4 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 2, 2016 Author Report Share Posted January 2, 2016 1 hour ago, RitaB said: 'Yes, Abad, you are "a bad" client... It needed to be said.' Thanks for the laugh, I needed it 4 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 3, 2016 Author Report Share Posted January 3, 2016 Could this be a fix?? The guy got a letter from the IRS about his 2010 return, he didn't add some interest. If we amend the return and elect to receive a refund will he get it even though it is way over 3 years? Then he will only forfeit his refund for 2011? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 3, 2016 Report Share Posted January 3, 2016 3 years after the due/file date or 2 years after paid. So, unless he paid really late for the closed years (which sometimes happens when the SFR or other IRS correspondence begins) he's out of luck. That said, I have heard of people asking to apply a refund from a closed year that actually gets applied. Had a DIYer who slipped one by and then came to me to fix some other years. If this "client" is still not responding to you, I'd mail back his original documents certified/return receipt and forget about him. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted January 3, 2016 Report Share Posted January 3, 2016 What Lion recommends is actually really good advice. Mail back his original. Possibly include a letter to the effect of "despite repeated requests for information we have heard nothing from you since your email of (date) - so here's your stuff good luck and goodbye." 2 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 3, 2016 Author Report Share Posted January 3, 2016 I think you ladies are correct, he is out of luck. He is coming by to pick up his stuff. I will NOT do business with him again. 1 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted January 3, 2016 Author Report Share Posted January 3, 2016 2 hours ago, Lion EA said: 3 years after the due/file date or 2 years after paid. So, unless he paid really late for the closed years (which sometimes happens when the SFR or other IRS correspondence begins) he's out of luck. That said, I have heard of people asking to apply a refund from a closed year that actually gets applied. Had a DIYer who slipped one by and then came to me to fix some other years. If this "client" is still not responding to you, I'd mail back his original documents certified/return receipt and forget about him. He filed 2010 in 2011 so he is past the 3 year mark there also. 1 Quote Link to comment Share on other sites More sharing options...
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