Ethics vs. client satisfaction

[Janitor Bob]

Long-time client (and family friend) was in an "unfortunate" marriage for several years.  Her spouse earned cash (under the table) and had not filed taxes in 5+ years and was not going to start just because he got married...so I have had to file client's returns MFS even though jointly was better because husband did not want his name ona a return and refused to sign a MFJ return.  Client finally divorced the guy (unfortunately not final until January 2016).

Client demands to file HOH (daughter lives with her) instead of MFS.  The problem is that client already told me in several previous conversations that she did not move out until Sept. 2015....so did NOT live apart last 6 months of the year.  After reading some IRS literature I sent, client is now telling me to file HOH under assumption that they did NOT live together last 6 months.

 

I told her I could not file that way, as much as I may want to, because I had reasonable belief that it was false.

Client cried

Client shouted

Client is no longer client

but I will sleep well knowing I did not file a false return.  I figure she'll find another preparer this year...to whom she will know what not to say...and she will probably be back to me next year.

 

This job.....

[ILLMAS]

Is the husband the guy who drinks warm Corona beer?

[Janitor Bob]

No...Chaz, the guy who stands on the corner by Woody's Market and drinks warm Corona...despite his many quirks, always files his taxes and never married.  He says he is married to his bottle.

[Janitor Bob]

also...Woody's Market closed...Chaz now stands on the corner by The Rainbow Bar & Grill...still drinking warm Coronas

[Terry D EA]

I am right with you JB. You have to have some comfort in know you did the right thing. It's not even worth mentioning the consequences you could face had to succumbed to the client's desires. Good Job!!! All I know is that for every client that I have lost for what ever reason, at least two or three takes their place. Go figure.

I fired a client last summer that was almost at the top of my PITA list. They opened the door by asking me the tax consequences of selling a building and have the buyer pay them partial cash and the rest with a check to avoid paying capital gains on the sale and if they absolutely had to report it. This opportunity was a blessing to say nope and now you breached our agreement and I can no longer provide you service as I cannot be part of anything that suggests tax fraud. I was told to forget everything I had just heard. Nope no can do, engagement ended. Man am I glad and I have already gained another S-Corp to take their place. So, stand up for what is right, you can't go wrong. 

[RitaB]

I fired a guy yesterday that I hadn't even hired yet.  He came in for a quote.  Wife had a little nothing crafting "business".  He did the little air quotes and eye roll to indicate she is no businessman.

Calls about something same afternoon.  Drops in two days later to ask if he can deduct moving expenses.  He's on disability (and happened to mention he was better now, but not giving it up. Grrrrr.)  They moved here from PA.  She has no job.  Just loses money on crafts.

Your move was not work related, you just like it here, correct?  "Yeah, pretty much."  Then, no, you cannot deduct moving expenses.  I'll look up the rules and send them to you.

HE FRIKKIN CALLED me the next day to tell me HIS PA PREPARER said I could deduct his moving expenses on Form 3903 and blah, blah, blah. 

I sent him an email with links to Publication 521, instructions to Form 3903, and two articles. 

Note at bottom:  "I am going to respectfully decline the opportunity to prepare your return, I am well aware of the process used to deduct legitimate moving expenses, and I don't need instructions from your previous preparer about anything."

[JohnH]

The PA preparer is probably so happy to see the client gone that he will tell him whatever he wants to hear, just to be sure he doesn't come back. 

[jklcpa]

1 hour ago, Janitor Bob said:

and she will probably be back to me next year.

I would never take this client back if she asked you to file a return under false pretenses.  She'd likely lie again in future if she saw benefit from it.

 

56 minutes ago, RitaB said:

HIS PA PREPARER said I could deduct his moving expenses

This dude should have the person in PA prep and sign that return!

[rfassett]

JB - you did the right thing! Once you cross that line it is a very slippery slope beyond.  Stay very far back away from that edge.

[Yardley CPA]

Integrity.  It all comes down to Integrity.  You obviously showed you have it JB. 

[Jack from Ohio]

DO NOT TAKE THEM BACK!!  EVER!!!

I allow no client to dictate to me how to perform my job as a preparer.  That is an instant "Hand their original documents back to them and show them the door" firing situation.  I do not even offer any explanation.  I fired one that way last year.  Questioned everything I did in relation to the 6 rental properties he owned.  His "bookkeeping" did not even meet the tiniest definition of the word, and all his numbers did not make sense.

You did good JB!!

[Catherine]

16 hours ago, Jack from Ohio said:

DO NOT TAKE THEM BACK!!  EVER!!!

I allow no client to dictate to me how to perform my job as a preparer. 

Had one a couple years ago myself - asked questions about major rental property repairs and his response was "I don't see why you need to know that."  Boy did HE get fired in a hurry!  (Duh; I ask so I can up-charge your bill because I have nothing ELSE to do with my time.  Why else?)

[Pacun]

21 hours ago, Janitor Bob said:

Long-time client (and family friend) was in an "unfortunate" marriage for several years.  Her spouse earned cash (under the table)

It is OK for the husband to do that but it sounds really bad if the wife is doing it.

 

I think I got your client. She came to me and she also cried but she didn't shout

This is a highlight how the interview went:

I asked:

When did you separate from your husband:

TP. In June
Me: Do you know the exact date?

TP: Yes, he spent father's day with the kids and left the following day.

ME: But you are still married.

TP: Yes, but my old preparer told me that I qualified for head of house hold because I lived apart from my husband for more than 6 months at the end of the year.

ME: Why don't you go back to your old preparer then?

TP: Because he is a friend of Chaz, the guy who stands on the corner by Woody's Market and drinks warm Corona

Me: Did your husband ever come back to sleep at home?

TP: NO.

Me: I have hard time believing you.

TP: Why? (she started crying).

Me: I apologized and prepared her return last week (HH).

I slept well because I did the right thing for this separated tax payer.

 

Joking aside: I have also sent away people because they insist on HH when they should file MFS. I am pretty sure that after I tell how much they lost because she didn't kick the guy out in June, they go to another preparer with a better story and they file HH. That's OK with me. I always offer them my service with a note like this "Whenever you want to do your taxes correctly, you come back here. If you divorce is final this year, you come back next year and most likely you will be HH if you don't remarry. I do get some clients that come back and at that point they understand that I don't bend the rules and they become good clients.

[RitaB]

1 hour ago, Pacun said:

Joking aside: I have also sent away people because they insist on HH when they should file MFS. I am pretty sure that after I tell how much they lost because she didn't kick the guy out in June, they go to another preparer with a better story and they file HH. That's OK with me.

I don't understand why you would tell them what they would have gotten by lying.  Or getting in their time machine and kicking the guy out earlier.   And do you actually take time to figure it?  Why even go there?  I'm not trying to pick a fight here, I just don't see that any good that can come out of informing clients about what might have been if their filing status were different.  For future reference with the next guy?  Or next preparer?

[Pacun]

No, I tell them what they have lost because they didn't kick the guy out in June.

[taxxcpa]

Once I had some clients who had first  gone to someone who listed both the husband and the wife as Head of Household on two separate returns.  They came to me because they suspected this wasn't right