ILLMAS Posted March 27, 2017 Report Share Posted March 27, 2017 What is your protocol when it comes to handling your clients IRS notices? For example I currently have a client that the IRS is holding on to their 2016 refund because TP had to prove their children lived with her in tax year 2015. I had her bring as much information and I have spent 3-4 hours preparing a letter and submitting it for the IRS, TP received a response claiming she did not prove they lived with her. I would not mine spending more time if I was charging them, at what point do you start charging? FYI the original notice has nothing to do with the preparation, it's EIC related. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 27, 2017 Report Share Posted March 27, 2017 I charge for every minute unless the notice was due to my error... or they're a great client and my response only takes 20 minutes or so. 9 Quote Link to comment Share on other sites More sharing options...
rfassett Posted March 27, 2017 Report Share Posted March 27, 2017 Think engagement letter. You are correct - there is a separation between preparation and representation. Just as you should have an engagement letter spelling out the details of the engagement for preparation work - so should you have one for representation work. 3 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted March 27, 2017 Report Share Posted March 27, 2017 I am with AB regarding this as well. If I had to spend 4 hours drafting the response to the IRS for whether or not the kids lived with her? I know she is going to lose... Rich 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 27, 2017 Report Share Posted March 27, 2017 2 hours ago, ILLMAS said: What is your protocol when it comes to handling your clients IRS notices? For example I currently have a client that the IRS is holding on to their 2016 refund because TP had to prove their children lived with her in tax year 2015. I had her bring as much information and I have spent 3-4 hours preparing a letter and submitting it for the IRS, TP received a response claiming she did not prove they lived with her. I would not mine spending more time if I was charging them, at what point do you start charging? FYI the original notice has nothing to do with the preparation, it's EIC related. I had this last year for a poor grandmother, long time client, who had her grandchildren ten months in 2015 because the parents of the kids were incarcerated. I made asked her to get everything she could on the list of suggestions that IRS provided. I forget the form number, but you can google. Yeah, it took a while for me to assemble and make copies. She got her big @$$ "refund" of taxpayer money. I charged her for the audit assistance this year when she came in and didn't know WTH the interest income from IRS was. Yeah, she paid me. No, I didn't charge enough. Yes, she also had the kids 2016. No questions from IRS this time. She called me and thanked me. And let me tell you it was high time. 5 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 27, 2017 Author Report Share Posted March 27, 2017 Thanks everyone, my client will have two options: 1. Pay me to get it resolved 2. Free - have her take a day off from work and visit the local IRS office 6 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 27, 2017 Report Share Posted March 27, 2017 Did someone else claim the kids? Sounds like you are headed towards an appeal. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 27, 2017 Report Share Posted March 27, 2017 Advise your client that if she goes the 'free' route and goes to visit the IRS office there are no more walk-ins. She must contact them ahead of time and make an appointment. 3 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 27, 2017 Author Report Share Posted March 27, 2017 46 minutes ago, DANRVAN said: Did someone else claim the kids? Sounds like you are headed towards an appeal. No one claimed the children, the IRS just wanted proof of residency, relationship and support, we tried to provide as much information from Form 886-H-EIC and IRS came back and said TP did not prove residency or support. In August of 2016, TP moved and her kids appear on the lease 2016-2017, before that she was renting on a month to month basis so there is no lease, something that didn't help her case either, was the school provided a very generic letter about her kids attending XYZ school, the letter had no date on it and I told the TP to go back to get a new one, she said the school wasn't that helpful and to just go ahead and send it like that. I already talked to the client and she will be stopping by the local IRS office to make an appointment. 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 27, 2017 Report Share Posted March 27, 2017 1 hour ago, ILLMAS said: No one claimed the children, the IRS just wanted proof of residency, relationship and support, we tried to provide as much information from Form 886-H-EIC and IRS came back and said TP did not prove residency or support. In August of 2016, TP moved and her kids appear on the lease 2016-2017, before that she was renting on a month to month basis so there is no lease, something that didn't help her case either, was the school provided a very generic letter about her kids attending XYZ school, the letter had no date on it and I told the TP to go back to get a new one, she said the school wasn't that helpful and to just go ahead and send it like that. I already talked to the client and she will be stopping by the local IRS office to make an appointment. A letter from the school won't cut it. She needs attendance records. Quote Link to comment Share on other sites More sharing options...
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