OOPS!!! I Goofed!

[Ray in Ohio]

Filed a return last evening for long time client with fairly large refund. His teenage son had W2 income or $1015.00 with $39.00 withholding. I filed him also for th refund. (I don't charge full for returns like this) Anyway here's where I messed up. On the Kid's return I failed to check the box that someone else is claiming him as a dependent. Now this morning when I got my ACKS, the parent's return has been rejected because of this. What can I do to take the exemption off the Child's return so that I can file the parent's return? Or what are my options? Do I need to file an amended return for the kid? If so, can I efile that right away? Should I try to call the IRS and have them take off the child's exemption? (dont think that would work).

Just looking for ideas!!!

Thanks; Ray (is it Friday yet?)

[Janitor Bob]

Filed a return last evening for long time client with fairly large refund. His teenage son had W2 income or $1015.00 with $39.00 withholding. I filed him also for th refund. (I don't charge full for returns like this) Anyway here's where I messed up. On the Kid's return I failed to check the box that someone else is claiming him as a dependent. Now this morning when I got my ACKS, the parent's return has been rejected because of this. What can I do to take the exemption off the Child's return so that I can file the parent's return? Or what are my options? Do I need to file an amended return for the kid? If so, can I efile that right away? Should I try to call the IRS and have them take off the child's exemption? (dont think that would work).

Just looking for ideas!!!

Thanks; Ray (is it Friday yet?)

You will have to file an amended return for the child (paper only, no e-file) and then do a paper return for the parents with the son as a dependent....If you try to e-file this, it will be rejected.

Put simply....No e-file for them this year

[Tax Prep by Deb]

Filed a return last evening for long time client with fairly large refund. His teenage son had W2 income or $1015.00 with $39.00 withholding. I filed him also for th refund. (I don't charge full for returns like this) Anyway here's where I messed up. On the Kid's return I failed to check the box that someone else is claiming him as a dependent. Now this morning when I got my ACKS, the parent's return has been rejected because of this. What can I do to take the exemption off the Child's return so that I can file the parent's return? Or what are my options? Do I need to file an amended return for the kid? If so, can I efile that right away? Should I try to call the IRS and have them take off the child's exemption? (dont think that would work).

Just looking for ideas!!!

Thanks; Ray (is it Friday yet?)

Did that myself last year for a client. Boy did I feel bad! That's when someone suggested that I not file any dependents return until the parents are filed and accepted. I immediately put that into practice and although it's never been an issue since, (I rarely make the same mistake twice) it's still a wonderful safety net.

Don't beat yourself up on this, it happens. My clients were very understanding and was just glad that I could get it straightend out!

Deb!

[kcjenkins]

I would also suggest you give them a discount coupon FOR NEXT YEAR, as part of your apology. Usually, good clients accept that we are human, and do not hold it against us. But still, it does cost them a loss of time in getting their refund, and I think when we show in a positive way that we understand that, they are more forgiving. And next year, if the thought of that mistake comes up in their mind, it will be in a more positive way if it's combined with a thought that they have that discount.

How much? That depends on the size of the refund, size of the fee, clients need for getting that refund fast, etc. And, of course, how bad you feel. But it really is not the size as much as the recognition that you are trying to make it better, and accepting your responsibility for the error.

[Tax Prep by Deb]

I would also suggest you give them a discount coupon FOR NEXT YEAR, as part of your apology. Usually, good clients accept that we are human, and do not hold it against us. But still, it does cost them a loss of time in getting their refund, and I think when we show in a positive way that we understand that, they are more forgiving. And next year, if the thought of that mistake comes up in their mind, it will be in a more positive way if it's combined with a thought that they have that discount.

How much? That depends on the size of the refund, size of the fee, clients need for getting that refund fast, etc. And, of course, how bad you feel. But it really is not the size as much as the recognition that you are trying to make it better, and accepting your responsibility for the error.

KC is absolutely right again!

I have done this in the past and although everyone feels bad at the time the error is discovered, I have always had the client come back the following year. I had one come back from last year were it took several attempts to get the e-file through as I kept transposing a number and couldn't find it. I missed the refund cycle for that week. I apologised and the client was o.k. with it. They came back this year and found out that instead of the refund they were expecting they owed. I thought it would be one of those situations were they would try to blame me, but I explained they needed to check with HR department and see what their withholding status was. Turns out one of them had apperantly changed theirs and thats why they owed.

Feeling for them this year, and remembering the problem I had last year I reduced my fee by $20.00 and told them it was because of what happened last year. They left the office happy! By the way even when you make a mistake, if you treat your clients right they will respect you for it (at least most). This particular client has referred several people to me. So again we are all happy!

Deb!

[Ray in Ohio]

Thanks for all the answers. It's good that this client is not in a hurry for the refund. He basically efiled for the sake of convenience and not for a quicker refund. I am taking his return to him personally today and I totally expect him to understand. I will offer him a discount for next years prep fee.

Thanks again!!