Another stimulus question

[cientax]

Have a client that called me friday about her stimulus payment. She is single (divorced) with two dependents and we filed HOH for 2007. She owes no prior taxes or any other state or federal debts and she received her entire refund of about $7000 from the 2007 return. Her only income for 2007 was about $22,500 wages and no other income and does not itemized. The stimulus payment she received was an odd number. She received $1053 payment. How can the payment be calculated based on the above facts? Any one had this happen?

[Gail in Virginia]

Just guessing, but were both children under 17? Was her total tax paid less than $600? If her tax was $453, and she got $300 each for the children, that would add up to $1053. I really have not studied stimulus payments and their interaction with EIC, etc enough to be sure of an answer to your question. You might try the IRS rebate calculator and FAQs for information.

[cientax]

Just guessing, but were both children under 17? Was her total tax paid less than $600? If her tax was $453, and she got $300 each for the children, that would add up to $1053. I really have not studied stimulus payments and their interaction with EIC, etc enough to be sure of an answer to your question. You might try the IRS rebate calculator and FAQs for information.

You are exactly right, her tax was $453 and her twins Yuk and Puke are under 17. I didn't take time to get into the stimulus payment thing because most of my clients don't qualify and I didn't have many of those that qualify under the other rules for qualifying such as SS benefits, veterans pay etc that have no filing requirements. Thanks for your help.

[Jack from Ohio]

Is it just me and my perception...

The firm here has a lot of clients. I have been the one answering the "Stimulus" questions when they call. I am noticing that all the calls for "Where is my rebate", and "Why isn't my rebate larger", are coming from folks with no line 57 taxes, or received much more refund than the taxes withheld. Then the person calling usually challenges my answers based on "The people at work say...."

Just ranting...

My Grandpa used to say... "You don't look a gift horse in the mouth, and you don't clock free labor."

Words to live by.

I feel a bit better now!!!

[jainen]

>>Just ranting... <<

I must be missing something, because only about one out of ten posts on this topic make any sense at all to me. I wish ALL my clients would remember to call me after tax season and I don't even care why. Some of those calls would save me a whole lot of unbillable time next March, and occasionally some might generate a referral or some audit/collection work.

And as to questions about the stimulus, what could be simpler? If you don't have time you just say, "irs.gov." But really, can't you just see the right answer at a glance? Gailtaxed nailed it without even the glance.

[joelgilb]

JohnH another member posted the following link to refer our clients to and even suggested that it doesn't take much time to go there and do it for them.

"A suggestion about the economic stimulus calls. I've had a few, and as I said before I always offer to email them the link to the "Where's My Stimulus Payment" page so they can do their own follow-up.

https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC "

Although I am getting tired of answering this question for FREE! This does help.

[Jack from Ohio]

I must be missing something, because only about one out of ten posts on this topic make any sense at all to me. I wish ALL my clients would remember to call me after tax season and I don't even care why. Some of those calls would save me a whole lot of unbillable time next March...

We have over 3,000 clients at the firm where I work. if only half call, 1,500 X 15 minutes = 375 hours.

[JohnH]

Jack: I'd run the math a little differently, since not anywhere near all your clients will be calling.

3,000 clients, with 80% having their bank account number listed on ther return. So that means that 2,400 of them have already received their rebate via direct deposit. Allow for a 10% error rate by the IRS, so 240 of those haven't received their rebate and all of them call you.

Half of the 600 who didn't have their bank account number on their return either don't have a clue about the rebate or don't qualify for it due to income limits. So that leaves about 300 calls from this group, for a total of 540 calls x 5 minutes (which is really all it should take), so that adds up to about 45 hours. And if you've trained some of those to inquire by email rather than by phone, you can cut the hours even more.

I'd put that in the category of cultivating good customer relations any day.

[Jack from Ohio]

Jack: I'd run the math a little differently, since not anywhere near all your clients will be calling.

3,000 clients, with 80% having their bank account number listed on ther return. So that means that 2,400 of them have already received their rebate via direct deposit. Allow for a 10% error rate by the IRS, so 240 of those haven't received their rebate and all of them call you.

Half of the 600 who didn't have their bank account number on their return either don't have a clue about the rebate or don't qualify for it due to income limits. So that leaves about 300 calls from this group, for a total of 540 calls x 5 minutes (which is really all it should take), so that adds up to about 45 hours. And if you've trained some of those to inquire by email rather than by phone, you can cut the hours even more.

I'd put that in the category of cultivating good customer relations any day.

Your numbers are nowhere near the reality I experience. Never less than 15 minutes, because every answer I give is challenged. 50% use bank numbers. 20% refuse to e-file. Even the ones with bank accounts call when "I didn't get the amount I was supposed to. Did you do my return correctly?"

I am tasked with answering these calls. People will call instead of read.

[jainen]

>>every answer I give is challenged<<

Why do you think that is?

[Jack from Ohio]

>>every answer I give is challenged<<

Why do you think that is?

People are much quicker to believe their co-workers, bowling buddies, family members, what they heard on the TV, etc.

I had a lady tell me that she read that VA Disability recipients were entitled to an ADDITIONAL $300. They had plenty of earned income to get the $300 each, but she was wondering why they did not get the ADDITIONAL money they "had coming." I was only able to politely end the conversation by telling her to call the IRS and let me know where that part of the progam is listed.

People are treating this rebate as money they are "entitled" to.

[jainen]

>>People are much quicker to believe their co-workers, bowling buddies, family members, what they heard on the TV, etc<<

People in Ohio? I don't know about that. My clients seem to rely on me and accept my explanations.

>>People are treating this rebate as money they are "entitled" to.<<

No kidding? I mean, according to Congress they ARE entitled to it. In fact, Congress WANTS them to get the money as a matter of public policy. If your explanations are missing this key point, that may be why your clients are challenging you.

[joelgilb]

People are much quicker to believe their co-workers, bowling buddies, family members, what they heard on the TV, etc.

I had a lady tell me that she read that VA Disability recipients were entitled to an ADDITIONAL $300. They had plenty of earned income to get the $300 each, but she was wondering why they did not get the ADDITIONAL money they "had coming." I was only able to politely end the conversation by telling her to call the IRS and let me know where that part of the progam is listed.

People are treating this rebate as money they are "entitled" to.

Jack:

You are right on the money with these comments! Seeing the same thing myself and the clients argue with me like I prepared a special return for them to get their stimulus payment!

Have a real good friend that has his own practice as well. Last week he was on vacation in Mexico, when he came back he had 48 messages on his voice mail. 46 were with questions about the stimulus payment and he agrees that minimum phone call is 15 minutes!

Let's see 46 * 15 = 690 minutes / 60 is 11.5 hours. And that's not near the calls he has taken already, before he left for vacation.

[jainen]

>>46 * 15 = 690 minutes / 60 is 11.5 hours<<

There is no reason in the world why he needs to spend 15 minutes per call. He can simply say he doesn't want them to contact him until they are ready for him to do the tax return, and hang up.

[Lion EA]

And, I get clients calling who ask when their son or uncle or neighbor (not clients of mine) will get their payment or why son's amount was different than his friend's, neither return prepared by me. "Is it OK if I have my son call you from FL?" Good grief.

[jainen]

>>"Is it OK if I have my son call you from FL?" Good grief.<<

It shouldn't take more than three seconds to say, "Thank you, but I never accept referrals to new clients."

[joelgilb]

>>46 * 15 = 690 minutes / 60 is 11.5 hours<<

There is no reason in the world why he needs to spend 15 minutes per call. He can simply say he doesn't want them to contact him until they are ready for him to do the tax return, and hang up.

Maybe your client base is different and if so that's great. Wish I had the same base of clients.

My clients tend to need hand holding and when they call they want to talk and if I cut them off they tend to get upset with me. Or maybe its just that I have diarrhea of the mouth (its an attorney thing, we get paid by the word I think).

I even tend to spend 15 minutes plus with the people that call with questions that aren't clients looking for the free advice. And I do so because you never know when one will turn into a good client. In fact, I just received a call while writing this from someone looking for free advice and spoke with him for 25 minutes (which is why I remembered to add this comment). This one I believe has turned into a paying client and in the end decided he needed more of my time and made an appointment.

Wondering if Jack's has a similar base or is also a talker like me (no offense Jack, if you're not).

[Gail in Virginia]

>>46 * 15 = 690 minutes / 60 is 11.5 hours<<

There is no reason in the world why he needs to spend 15 minutes per call. He can simply say he doesn't want them to contact him until they are ready for him to do the tax return, and hang up.

If I use that strategy, I can save a lot of time, because most of my clients would never call again. I wonder why I didn't think of that before? I can really work efficiently now!

[jainen]

>>you never know when one will turn into a good client<<

Thank you. That is my point exactly, although I can see that sarcasm didn't express it very well. Congress did us a big favor with this stimulus rebate and I don't understand why tax preparers resent it. It may or may not stimulate the national economy, but it sure stimulates OUR economy by generating interest in our services. You couldn't get this many hot prospect calls with $10,000 of advertising.

[zeke]

Joel - far be it from me to speak for jainen, but...

I THINK he is trying to say that if you do not need new clients, you have total control of your time and phone. Just hang up. If, however, you would like new clients, the phone calls are always an opportunity to sell yourself & your business.

Zeke

[bstaxes]

I must be lucky, I don't have clients calling about their free money. I told them when I did their return that the government would send them the money, how much depends on their return (somewhere between $300-$1200 if they have children). "You know the government, they can change their mind and do whatever they want", seemed like an answer to their question at the time I prepared their return. I also told them to be thankful for whatever they get because some of my clients are getting anything based on their income. So far no calls and I am happy.

[Jack from Ohio]

I believe the difference in opinion between myself and Jainen can be easily explained with a numerical answer to one question.

"How many clients do you have?"

The firm I work for has ~3,000 this year, from all 50 states, and all dempgraphic groups. It is what has generated my statements here.

My personal practice, I have 157 clients for 2007. From my personal clients, 6 phone calls. Two from elderly that had been given bad information from relatives, one from a "Know it all", and 3 from people who were debunking myths told to them at work. An entirely different group of people than at my firm.

Jainen, if one of your employees was that short with a client and hung up on them, would you take kindly to it?

[joelgilb]

Joel - far be it from me to speak for jainen, but...

I THINK he is trying to say that if you do not need new clients, you have total control of your time and phone. Just hang up. If, however, you would like new clients, the phone calls are always an opportunity to sell yourself & your business.

Zeke

Zeke:

Apparently you and Jainen responded at the same time. And his response indicates that his previous post was intended to be sarcastic. Sometimes, I am afraid, the written word does not always relay the writers tone. I honestly did not read Jainen's sarcasim, but now that he explained it I can see it. And I think I am not alone there.

[zeke]

Joel - It is often difficult to see the "tongue in cheek" on the web! Re-read the entire thread and Jainen's comments are clear.

z

[joanmcq]

My clientele....I've gotten exactly zip, zero, null, none. I did have to explain why one guy who's return I'm working on now (see SE health post) that he was getting a max of $300, not $600. and I did get an email on the 'where's my refund' type (NOT rebate), but nada on the rebate. love it.