Edsel Posted April 19, 2017 Report Share Posted April 19, 2017 A new customer has not filed in years. After spending time you believe 2013 will have a refund, 2015 will have a refund, and 2016 will have a refund. You believe the missing year, 2014 will have a large balance due. The customer does not want to pay you 2-3 hours at your hourly rate to file 2014, and would prefer to file only 2013, 2015, and 2016. What is your ethical responsibility? Remember we are not collection agents for the IRS. File all four returns and leave them for the client to mail in? Refuse to file 2014 because you're not going to be paid? Tell the client he has to mail in all returns? ??? Quote Link to comment Share on other sites More sharing options...
rfassett Posted April 19, 2017 Report Share Posted April 19, 2017 Don't know about the ethics, but if he wants to be my client, he comes clean all the way or goes somewhere else. Well not being a collection arm for the IRS, I do believe that everyone should pay their responsible fair share. If he doesn't, someone else has to pick up the bill. That is just my naive way of thinking. 4 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 19, 2017 Report Share Posted April 19, 2017 It is too late to get a refund from 2013. I agree with rfassett. 1 Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 19, 2017 Report Share Posted April 19, 2017 I agree with rfassett. He provided you with information and you spent time reviewing that information for each year from 2013 through 2016. Based on that review, you believe 2014 will have a large balance due. Personally, I would not agree to prepare only the returns that result in a refund. Since I'm aware of the entire situation, I would agree to prepare all the returns or none of the returns. May not be a good business decision, but I agree with rfassett, and would send them on their way. 5 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 19, 2017 Report Share Posted April 19, 2017 I don't think the problem are your fees, the problem sounds like he does not have the money to pay tax liability, I would offer to prepare all of them and to send in a payment once the refunds come in for 2014 tax liability. Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 19, 2017 Report Share Posted April 19, 2017 I think all or nothing. And get paid up front. Prepare all as paper returns & hand to him for signature & mailing. The client can choose to send them in (or not) as he wishes. 4 Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 19, 2017 Report Share Posted April 19, 2017 Agree with everybody else. I would not comment one way or the other about 2013 refund being gone. I will add that I had the pleasure of telling a person who comes here from another country, makes more than I make, kids on state health coverage, whining about taxes: I bet you like roads, schools, health care, stamps, and bombs. This is the greatest country in the world. You need to help me pay for that stuff. Pay your taxes. I believe I was doing God's work there. 7 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted April 19, 2017 Report Share Posted April 19, 2017 8 minutes ago, RitaB said: Agree with everybody else. I would not comment one way or the other about 2013 refund being gone. I will add that I had the pleasure of telling a person who comes here from another country, makes more than I make, kids on state health coverage, whining about taxes: I bet you like roads, schools, health care, stamps, and bombs. This is the greatest country in the world. You need to help me pay for that stuff. Pay your taxes. I believe I was doing God's work there. I had one client this year, complaining about taxes ($250K+ AGI from a large 1000 unit apartment building that is managed by DAD) that he should move to the Bahamas where they don't have taxes... I told him: "Don't let the door hit you in the ass" PS... he filed to get SS at age 62. Yeah.. those "taxes suck people"? First in line to suck off the nipple. Rich 5 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted April 19, 2017 Report Share Posted April 19, 2017 I agree with Ron. Prep all 4 years of returns. Hand them to him to mail, and with a bill for all four years. Rich 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 19, 2017 Report Share Posted April 19, 2017 1 minute ago, Richcpaman said: those "taxes suck people"? First in line to suck off the nipple Ain't THAT the truth! And the same ones who want to write off as charity deductions for their dogs, contributions to the local legis-vermin races, and some things you just shake your head at to think *anyone* could consider them deductions. 3 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 19, 2017 Report Share Posted April 19, 2017 2 hours ago, Richcpaman said: I agree with Ron. Prep all 4 years of returns. Hand them to him to mail, and with a bill for all four years. Rich We prepare the returns. If they choose to send in or not is up to them. They will get the notice when the IRS sees the missing year....eventually. No filing, no statute of limitations. They can pay a bunch more when you have to help them set up the payment plan in the future and try to get all the penalties abated. Tom Newark, CA 5 Quote Link to comment Share on other sites More sharing options...
Roberts Posted April 19, 2017 Report Share Posted April 19, 2017 Let's be honest and realize that when you inform them that 2014 is a requirement, they WILL pack up and go to the next preparer and fail to mention 2014. I would inform the potential client that when a refund request for 2015 shows up, the IRS will run a tax return without any deductions for 2014 and assess them a tax owed far higher than your return will generate. Inform them that at that time, fixing their error will cost significantly more than doing an original return. 5 Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 19, 2017 Report Share Posted April 19, 2017 I have had two clients who requested refunds this year and the IRS froze those refunds until they filed missing years. I loved it because a lady said: I haven't file 2014, 2015 and 2016. I prepared them and she was getting a refund because she had a daughter a nice withholding. Two years before the baby was born she didn't file and IRS said... hold your caballos, if you don't file those years, you will not see any of the three refunds totaling 15K. Thanks to the IRS, I have two more years to prepare and more dinero to make. 6 Quote Link to comment Share on other sites More sharing options...
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