How Are We Supposed to Know Who to Charge?

[FDNY]

If you're in this business long enough you'll have a slew of clients' kids who are either living at home, on their own, and with college degrees, some going to grad school, who become your new clients.  I find them neglectful in timely returning authorization forms so I start contacting them April 1st so I don't get jammed up this week (like that works).  When I get the forms back many times there is no check.  Now I have to contact them again and the answer I hear is so common, "I thought my parents paid."  When I was in their position I wouldn't even think of asking my parents for anything because I knew the answer would be no,

[Lion EA]

I have two now that I will include their invoices when their parents pick up, and one whose parents are no longer my clients that's never going to pay.

[BHoffman]

I put it on the parents' bill until they tell me not to.  I also prepare a few pro bono returns for kids in school with their part time jobs.  Figure they'll be making money soon enough and I'll be needing younger clients as the old ones....no longer need to file.

[WITAXLADY]

but you don't file til paid so you can get paid - right.?

[Lee B]

I find it very puzzling, for a lot of them it's like they place very little importance on the whole process.

I suspect that if they could do it all on their smartphone, it would all fall into place quickly.

 

[Lion EA]

Sometimes I wait.  But, so many of my clients have been with me 20+ years that I don't always wait for a check, especially this week.  I don't mind e-filing the kid sooner to get their refunds in process when I know the parents will be picking up/paying soon anyway.  Often I've priced the kid at $0 or really little.  Until they graduate college and get that full-time job!  But, parents didn't pay tuition that year so usually don't say a word about paying me more on behalf of their kid.

[Richcpaman]

I bill who ever brings me the tax return.  If the child is old enough to bring me his/her tax return, then they get the bill.  If the child's stuff is in with the parents return, I bill the parents.

I always like to make sure the dependency issues are correct between parents, children and college etc...

Rich

[Roberts]

18 hours ago, BHoffman said:

I put it on the parents' bill until they tell me not to.  I also prepare a few pro bono returns for kids in school with their part time jobs.  Figure they'll be making money soon enough and I'll be needing younger clients as the old ones....no longer need to file.

And if they never learned on the ultra easy returns - they'll likely never learn as it gets more difficult.

[SaraEA]

Who pays?  That can touch on familial issues of control.  I have clients who bring me their adult children's tax docs and communicate with me every step of the way.  Their kids are married, highly-paid young professionals, living in other states.  One of the kids found an excuse to leave our firm, the real reason being "they mean well but...."  The other two are still with me, but I communicate with them directly via phone and email.  Mommy usually rushes in the minute the returns are done to pick up and pay the bill.  I can't complain because we're talking a couple grand here, paid instantly.  This year I decided to send one of the "kids" the bill and guess what, he paid.  Mommy felt a bit put out.  Come on, he makes over a half mil a year.

Another dad still insists on paying for his kid, who is an attorney working in NYC for a Fortune 500 company.  (She pays more just in taxes than I earn in two years.)  Another mom just paid for her daughter and significant other's returns, both making well over $100k each.  Please, parents, let your children grow up.  And that goes for the ones who are doing exceptionally well and those who are still struggling.  My practice is to bill the child unless told otherwise.

[Jack from Ohio]

Bill the taxpayer, unless they are a minor.  Easy rule.  If Mom & Dad pay, I don't care.

[Lion EA]

I only communicate with the "kids" even though parents include those documents in with their own.  I have one mom who pays via son's checkbook which he leaves with mom while he's out to sea (marine engineer) for weeks at a time.  I think all my "kids" pay their own taxes and some pay my invoices.  But, some parents still pay me for their whole family; I'll take money from anyone.  Well, at least from any of my clients.

[Gail in Virginia]

If the kids choose to let their parents bring in their stuff and pick it up, I am fine with that.  But once they are 18, I usually insist on something in writing to let the parents pick up the kids return.  They are entitled to confidentiality, and I am required by law to respect that.

[Lion EA]

I usually upload to FileShare on my website to the kid's account.  But, if they tell me via email/phone to give their folder to their parents and they've been long time clients, I do that.  Just one of a few things I need to get in writing.  Slowly getting things in writing to cover my butt.