lost client

[jshtax]

Think I may have lost a client because their attorney did not communicate well. Older lady with 2 family partnership as well as 9 trust. Last year when it came time to do her work the attorneys had an issue with how one of the partnership returns were done because the ownership was not accurate. I told client and daughter(poa) how am I expected to do a return when your attorneys want to keep everything a secret. I think it upset them because they are not returning calls to make appointment.

[kcjenkins]

I think you should just say "good riddance" and let it go. If they DO come back at the last minute, charge extra. If not, you lost the stress of dealing with an unreasonable client or clients. No way should you be expected to read minds.

[MsTabbyKats]

I know it's frustrating because you did no wrong.....but on the other hand, for every new client you make, someone else lost one.

I know I'm about to lose one because of a few incidents and a "my friend said".....but, truthfully, I'd rather not deal with dissatisfied clients.

Word of advice....don't make anymore calls. It makes you look desperate.

[Richcpaman]

JSH:

I have never had an attorney refuse to speak with me. And I know some doozy attorneys.

What was going on with the FLP's? Were they transferring ownership %'s every year using up the Max Gifting amount? Or every other year? Seems that would be the only reason for a dispute about ownership %'s.

Sometimes clients go away. I expect that to happen. I generally know *why* I may have been fired.

I send them the organizer, set up the appointment and do the regular things I do, and then I follow up once, or twice. Two or more times if a particularly large client. If a straight forward W-2/Sch A return, just once.

Rich

[taxxcpa]

Whether a client has a good reason or not, if he wants to switch to someone else, I don't agonize over it and I don't do follow-ups to try to lure him back.

[michaelmars]

malpractice carrier says you should send a letter simple to remind them of any approaching deadlines.

[RitaB]

Think I may have lost a client because their attorney did not communicate well.

I had an attorney client in my office Friday, reminiscing about the days when he got audited all the time. Seems it all worked out fine because the preparer mistakenly set up a mobile home for 39 years, and everybody knows it's 17 years. Besides, he could have 79ed it anyway. He was communicating ok, he just didn't know what he was talking about. I just let him think he was right. They like it that way.

[Abby Normal]

malpractice carrier says you should send a letter simple to remind them of any approaching deadlines.

I always extend them too. Sometimes they show up in the fall.

[ILLMAS]

Just send an extension on their behalf, I usually do that for two years after that I stop.

[HV Ken]

One of the things I have heard is that the average accounting relationship is 7 years. Clients come and go for many reasons, most of which have nothing to do with the service you provide them.

[jshtax]

JSH:

I have never had an attorney refuse to speak with me. And I know some doozy attorneys.

What was going on with the FLP's? Were they transferring ownership %'s every year using up the Max Gifting amount? Or every other year? Seems that would be the only reason for a dispute about ownership %'s.

Sometimes clients go away. I expect that to happen. I generally know *why* I may have been fired.

I send them the organizer, set up the appointment and do the regular things I do, and then I follow up once, or twice. Two or more times if a particularly large client. If a straight forward W-2/Sch A return, just once.

Rich

Its not that they refuse to speak its just that they do things during the year and do not communicate it to us.

[SFA]

I used to be more casual about sending extensions for the procrastinators, but now I am reluctant to send extensions for clients who are not communicating with me. We make calls to confirm that the client wants or needs an extension before filing.

The extension also keeps the statute of limitations clock running on returns that perhaps the client wants to put behind them and would prefer that the look-back window closes asap.

If another preparer has completed their returns on time, then we may be out of line to make the assumption that an extension is helpful to them.

I've read that we may actually be setting ourselves up for liability if we automatically file extensions because the clients assume that the past history of filing extensions for them, sets the precedent that they can assume that we are responsible for filing them always.

[JohnH]

I file lots of extensions, but only once or twice have I filed one without first speaking with the client and obtaining info on any taxes withheld. An all-zero extension is invalid because it obviously isn't based on having made a reasonable estimate of the tax liability, which is the one reason IRS can retroactively deny the extension. It will fly if there is no audit, so it's better than nothing. But I would not represent it to a client as a valid extension.

Some of my regular extenders forget how this works, and they will call, text, or email me and say "I want to just file an extension" . I always tell them I will need their w-2's, 1099-R's, SSA-1099, and anything else which might show any significant withholding tax before I can complete the extension.

In over 30 years, I have only seen one extension invalidated. The extension showed all zeros, the return was filed prior to Oct 15, the return was audited a couple of years later, and the auditor assessed a 25% FTF penalty because the extension was not based on a reasonable estimate. (I was not involved in the original extension, return, or audit - I was just asked to review the results)

[MsTabbyKats]

I don't know the legality about filing extensions....but if the client doesn't request one...I certainly wouldn't send one.

Suppose the client passed away, is somewhere and doesn't want to be found, or is not planning on filing for whatever reason.

I wouldn't send anything without permission.

One phone call...one e-mail......no response.......and assume they've moved on.

[michaelmars]

I too would never send an extension for a client I haven't been in contact with. For all the reasons stated above, I would consider it malpractice. But I do put the issue in writing, and if [based on past history of client] a huge payment is needed with the extension, I send it return receipt.