redux Posted May 16, 2007 Report Share Posted May 16, 2007 It is interesting that some people, neighbors and friends, who know you are in the tax prep business insist that there is hardly reason that they would hire a tax professional to do their taxes. After all, they have been doing their own taxes for YEARS and know EXACTLY what and how to do it. (It's so simple a caveman could do it attitude) and THEN>>>>the CP2501 comes. Well, the neighbor says, all I did was clean out my investment portfolio and forget the $127,000+ in stocks I sold, now they want a either $42,213 in taxes or a Schedule D showing the purchase prices. How could they (the IRS) think the basis in the stocks was zero as they stated? I got that all straightened out, though, but then I got this other letter - a CP2000 And who do they think they are reducing the amount of my IRA deduction. I'm over 50 and I only deducted $4,500 (2005 return) in fact I'm 69 and so what that my employer has me on their retirement plan. There is no law that says I can't work AND collect social security AND add to my retirement through my emploter....IS THERE? Well no, not exactly I said, it's just that your IRA deduction may phase out depending on other factors. Phase out??? What is that? And on and on and.... Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 16, 2007 Report Share Posted May 16, 2007 Bob: So at what point in the conversation did you say: "Why don't we meet at my office and continue this conversation? I'm happy to answer general questions off the cuff any time, but when it gets this complicated we really need to have a sit-down. My rate is $xxx per hour." Quote Link to comment Share on other sites More sharing options...
redux Posted May 16, 2007 Author Report Share Posted May 16, 2007 Bob: So at what point in the conversation did you say: "Why don't we meet at my office and continue this conversation? I'm happy to answer general questions off the cuff any time, but when it gets this complicated we really need to have a sit-down. My rate is $xxx per hour." As soon as he mentioned the CPxxxx. One problem is that he's the type of person who, when you're trying to explain something, says...well, I don't care about all that just tell me how to solve the problem. I WILL solve this for him, but I do not want him as a steady client, you know the type. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 17, 2007 Report Share Posted May 17, 2007 I had a client who sold her rental house in 2004 and decided she didn't need me to do her 2005 taxes because "they are so simple". She had a W-2, interest income and dividend income. She ended up paying about $1000 in additional taxes. For 2006 she sold some stock and decided this "was not so simple" and dropped off her stuff. I asked her to drop off her copy of what she filed in 2005 "because it was so simple". She did not take into account the qualified dividends of over $6000 and even forgot to take her exclusion. I'll be getting her about $1200 plus interest back. She vows never to do her own return again. taxbilly Quote Link to comment Share on other sites More sharing options...
RitaB Posted May 17, 2007 Report Share Posted May 17, 2007 I had a client who sold her rental house in 2004 and decided she didn't need me to do her 2005 taxes because "they are so simple". She had a W-2, interest income and dividend income. She ended up paying about $1000 in additional taxes. For 2006 she sold some stock and decided this "was not so simple" and dropped off her stuff. I asked her to drop off her copy of what she filed in 2005 "because it was so simple". She did not take into account the qualified dividends of over $6000 and even forgot to take her exclusion. I'll be getting her about $1200 plus interest back. She vows never to do her own return again. taxbilly Stuff like this just makes my day! I worry about myself when I am so happy that someone screwed up, and I found it. This past season I had one that decided to do their own "easy" 2005 return, came back to me for 2006 cause they sold some property. They had missed the Retirement Savers Credit in 2005, so I pointed it out to them and told them it would be really easy to correct, I'm sure you don't need me to do that little 1040X (heehee). Hey, I only charged them $75 to do the "difficult" 2006 return, and I may even amend the 2005 free gratis when they ask, but the very idea of how cheap some people are when it comes to tax prep! Just like your lady with $6000 is qualified dividends - No doubt she spends more eating out or getting her hair done in a year than you charge to prepare her taxes for a year. What she's saying is the restaurant and beautician are worth more than you. OK, maybe I am taking this a tad too far... Quote Link to comment Share on other sites More sharing options...
mcb39 Posted May 17, 2007 Report Share Posted May 17, 2007 R Cooper....that is just human nature. Isn't it even more inflating when the error was made by another paid preparer? Usually HRB,; but I have a local preparer who is notorious for messing up and many of those cross my desk. The main thing is to be satisfied with and proud of the work that we do. I want my clients to feel that I prepare their returns just as if it were my own; and that is actually the case. Many times I get too emotionally involved and even more often I don't charge for the additional research, etc. But, when a return leaves my office, I feel that it has been prepared to the best of my ability (whatever that may be) and I am here for them the entire year and not just during tax season.... Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 18, 2007 Report Share Posted May 18, 2007 I find that the most complaints I get about my fee are from the more affluent. I always point out that it's a free country and that they can go somewhere else to have their taxes done. taxbilly Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted May 18, 2007 Report Share Posted May 18, 2007 I had a client who felt that they were only in my office for about two hours (personal and corporation return) and that therefore my fee was too high. So I explained that next year it would be even higher since they had opened a business location in another state and that they might want to go ahead and start now to find someone to do next year's return. They have already called to apologize and tell me that I took their comment the wrong way and they just didn't understand how I charged. I was kind of hoping they would find someone cheaper - my fees must be too low! ;) Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 18, 2007 Report Share Posted May 18, 2007 It is a fine balance, but I do follow the philosophy that if I don't get an occasional complaint about by fees, I'm probably not charging enough. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 19, 2007 Report Share Posted May 19, 2007 I also make it a point to up the fee on all of my clients (except the really poor who can't afford it). When a client complains that my fee went up I respond that I noticed you received an increase in your pay and why would I not also be entitled to an increase in mine? They usually agree that they didn't realize that fact. taxbilly Quote Link to comment Share on other sites More sharing options...
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