Now what do I do? (to e-file or not)

[Catherine]

Deadbeat client, did his return as a favor to his mom who recently died. He was told flat out - several times - that I cannot e-file his return until I have 1. signature pages properly signed and 2. payment in full for the return.  

He's sent me signature pages, and refuses to answer email queries about payment.

Now what? I'm not (yet) the paid preparer, but I have signature pages. 

[Margaret CPA in OH]

If he is a grown up and could manage to sign the forms, he surely must understand that payment is required.  I guess one more try at letting him know (maybe actual snail mail) that payment is required to be the 'paid preparer' or else return his documents to him.  It's a package. 

Frankly, I don't require money ahead (yes, my engagement letter says it does) but in 25 years I've had exactly one client fail to pay me.  It seems your clients are a bit different from mine.  Good luck and I hope it isn't a lot of money although you should get compensation for the work done, for sure.

[Lee B]

Most of my clients are business clients, however for my non business clients I insist of payment at the same time as their efile authorization, no exceptions.

I learned that lesson my second year in business when I let a business client get several months behind.

I lost $1,000 (back when that was a significant amount of money) when my client filed bankruptcy.

He ending up keeping a really nice house on the Mckenzie  River and left everyone else in the lurch to the tune of over $500,000.

Apparently he had a good Attorney because he was back in the same business under a different name as soon as his Chapter 7 finalized.

[Catherine]

52 minutes ago, Margaret CPA in OH said:

It seems your clients are a bit different from mine. 

Not really, and for anyone else I would file and not worry about payment. This guy is different. Loser son of a very nice couple (now deceased). His mom paid for his returns to be done for years, but she's gone now. This will be the last time I help him - he can go to the big box store of his choice in the future.

Good news, though - he emailed me back (I had tried one more time) and promises to call tomorrow late morning with a debit card. If that happens, I can file. If not, I still don't know what to do.

[Lion EA]

I think you have to file within 3 days (?) of receiving signatures. Think of it as your final gift to his mother. 

[BulldogTom]

56 minutes ago, Catherine said:

Not really, and for anyone else I would file and not worry about payment. This guy is different. Loser son of a very nice couple (now deceased). His mom paid for his returns to be done for years, but she's gone now. This will be the last time I help him - he can go to the big box store of his choice in the future.

Good news, though - he emailed me back (I had tried one more time) and promises to call tomorrow late morning with a debit card. If that happens, I can file. If not, I still don't know what to do.

do you think this guy is going to hurt your business if he badmouths it?   Then file it.   If not...send him his paperwork back with a note saying that you cannot provide services for free.

Life is too short to sweat these things.  Do what you want to do in your business, for reasons that you don't need to explain to anyone.  Even the deadbeat kid.

Tom
Longview, TX

[KATHERINE]

Hi Catherine, you already did a good job and could file it, may be someday, he can appreciate your good heart and pay it.   At least, he will remember he owe you a favor.  I did a lot like this, and eventually, I got paid.  Of cause, I lost money too but that is the risk.  The job is done, so wont cost extra to file it now. Hope he is not a unfair person.  Cheers.

[Lion EA]

Of course, you never accept him back.

Well, maybe, if you WANT to work with him, and he walks in with his past-due 2021 payment in cash, plus is putting a large deposit on his next return (100% of expected fee but designated as a deposit to allow you to collect any unexpected escalation of work).

[mcbreck]

I've only ever had 2 people not pay me & I considered them gifts. I don't require payment to e-file as lots of clients mail me a check after pickup and that can take a full week.

[JohnH]

Maybe the best thing will be that he doesn't pay you and is so embarrassed that he is ashamed to contact you again. I've had a couple of situations like that over the years, and decided that never hearing from them any more was worth the value of the unpaid bill.  

 

[Catherine]

Four days after signatures, he gave me a debit card number. Returns were submitted and accepted, and his copies mailed to him (first class, not Priority). I'm done with him, and it was technically only a day later than we are "supposed" to wait. But it also took him three different promised times to call me to pay before he came through. 

At some point in the next few weeks I'll make sure he knows that was a last-time courtesy for his mom's sake, and that I have no unaffiliated individual clients that I work with under the age of 80. (That last is true; sold off the bulk of my practice some years ago. Kept the elderlies 'cuz change is too hard for them plus - let's face it - they're not long-term clients. Also kept family and a few friends and charity cases that I do for a song. Anyone who wanders in new gets referred out to the guys who bought me out. He is not his mom, and he's under 80, so he's also history. Better ask the guys if they want him, or not...)