Where To Draw the Line

[mcb39]

I have a second year client who called on the 15th of April and told me to file an extension.  He said he would bring in the paperwork; which he did.  I told him that he would probably owe and needed to get this filed asap.   His wife had cashed in three small retirement plans; no taxes withheld.  They owe in excess of 1K.  We have called several (documented) times and left messages.  No replies, No call backs.  Where does my responsibility end?  I cannot efile the return as the 8879 is not signed.  I left a message last night that I would not be calling him again.  Suggestions?

[ILLMAS]

Have you considered mailing back their documents with a little note explaining the problem and wish them well!

[mcb39]

4 minutes ago, ILLMAS said:

Have you considered mailing back their documents with a little note explaining the problem and wish them well!

Nope!  Could and maybe should do that.  Of course, I am never going to get paid.

[GeneInAlabama]

If they don't send a check with the 8879, don't transmit until you do get the check.

[RitaB]

Can you text or email or snail mail a note?  I can't get over the people who won't check voicemail.  I'd say your guy has gotten the message, but just in case, I'd try another method of reaching him.  Then, I'd just wait on him to pick up.  It's your only chance of getting paid, and we do this to earn money, after all.  There are two kinds of people, and he's in the second group.  They experience zero anxiety about stuff we think about at 4:00 in the morning.

[Margaret CPA in OH]

Given the lack of response by electronic means, you may want to send that note Return Receipt and add the cost onto the bill.  At least then you would know the message was received by someone.  I recently read an anecdotal story about the lack of electronic response from a casual acquaintance only to find out a month later that the person had died.  Hopefully this isn't the situation here but one never knows.

[Roberts]

We've had people on here who've had horrific situations they've battled through - maybe your client is in the same boat. Illness / disability, death, unemployment? And you aren't a priority.

 

I'd scan a copy of everything so it's like I still have it. I'd return them all their documents with a letter explaining what is required to restart / complete the process. They might get to you eventually. They may simply not have the $1k and don't want to deal with any of it.

 

[JohnH]

What I'm going to suggest is unpopular, but here's what I'd probably do. Maybe I'm just feeling overly generous today. 

I assume he owes about $1,300 based on what you said. Unless it's a terribly complicated return you are best served to get rid of it.  I'd print out the return and mail it to him via certified mail with return receipt.  Add a fee to the bill for paper filing if you are inclined to do so, plus a charge for the certified mail/RR charges.  I'd include a note that he is incurring about $12 per month of charges (interest plus FTF penalty) on the $1,300 as long as it remains unfiled, but if he doesn't file by Oct 15, IRS will add another $65 per month to the aforementioned. Recommend that he file the return with IRS using the same method you used (certified mail with RR).

The certified mail with RR proves he got the return from you, and the letter gives him proper advice on what happens if he delays or doesn't file by Oct 15.  Maybe he will pay and maybe he won't, but at least you don't have to think about the situation any longer. If he cheats you out of your fee, at least you'll be able to prevent him from cheating you again in the future. Sometimes the best stress relief is to claim the high ground and move on.

 

[Jack from Ohio]

Send a postcard mentioning that you need for them to verify some information.  Put their file in the back of a drawer and go on with your life.  The situation will self-correct within 24-36 months.  Just keep an increase of your fees growing as time goes by.  You are NOT A BABYSITTER for irresponsible people.

"Lack of preparation and planning on your part, does not create and emergency situation on mine."

This is a sign we should all have in our offices.

[JohnH]

Here's the sign I prefer if my office.  It covers all sorts of situations.

OfficeSign.pdf

Although with some clients I occasionally I want to pull this one out:

[Abby Normal]

If you're going to mail them anything, mail them a bill.

 

[MDEA]

I put the clients folder in the hold drawer and we email them once a week to tell them it is ready. I have 15 folders going back three years in the drawer. If they call I tell them they can pick up their stuff or they can pay the bill and file.

[mcb39]

4 hours ago, Abby Normal said:

If you're going to mail them anything, mail them a bill.

 

I really like this idea.  Now that I recall, his son came in and filed an extension last year and never did come back with his SE info.  His excuse, he was getting married in the summer and didn't have the time.  I think it is time to rid myself of these losers.

[ADGFINANCIAL]

I agree with Jack.  We have some in the back drawer that are 3 years old.  Just waiting.  We do the work and then one day they wake up and say "this is the day".  Or they get a letter from the IRS or State and they have to do something.  They show up, we get paid.  I show no judgement.  But forget about it.  They don't care.  No telling what's going on in their life right now.  I had one last month that I've been sitting on for 2 1/2 years.  I did 3 years for the client and then he dropped off the face of the earth.  He calls pays me $1200. I thank him.

And everyone is happy.  The problem is we care, they don't.  Remember it's only business.

[taxxcpa]

I've clients who left papers with me and never came back.  After four years I destroy the papers

[FDNY]

I had my first of these this year.  I guess I need to make a dead file.

[RitaB]

Oh, wow, I have one or two every year that take forever to pick up.  I had one to pick up today whose return had been ready two months.  Got another one laying here, and I don't have a clue when they'll come in.  I got both extensions, so I wouldn't have started worrying till October about either one of them.

Yes, I do have one in the back for whom I did three returns a couple years ago who has never picked up.  I guess he's in the dead file.  

Bill, yours is in the Nursing Home, or Hospice care, not dead yet, there is hope!  

 

 

[easytax]

Sounds like a perfect place to mention ---- have this in your engagement letter or at least as part of the policy you share with the client --- I will keep documents until you pick them up //// up to 3-4-5 whatever years and then destroy them /// this protects you should they then come back complaining ---"I did not know; was not informed, etc..

 

In today's society -- protection is the way to think ----  (again, an enemy is less likely to harm you -- because you do not normally let them close /// while a friend, family will -- because of who they are --- they have access).

[SFA]

Our termination letter goes something like below, and is modified based on the individual circumstances. We also send this message to the last known email address. The letter below was recently sent to a client who wanted us to file prior year returns.

 

Dear XXXXXX,

 

This letter is to inform you, that we are releasing you as a client.

 

Although we have been on standby to complete your delinquent tax returns, we have had insufficient communication from you, to enable our office to proceed with completion of your work. Therefore, I have reconsidered the ability of our office to service your needs. For this reason, your client file has been closed.

 

Since your tax issues require a closer working relationship than we have been able to establish, please contact us regarding return of any tax documents remaining in our files. At this point, because you have not returned any of our recent phone calls, we are uncertain that the above mailing address is current. For this reason, we are reluctant to mail your documents that you provided to us. It is not our responsibility to store your materials, so unless we hear from you, at some point we will dispose of them.

 

Please know that we wish you well.

 

 

Sincerely,