How would you handle this situation

[ETax847]

Let's say you prepare a client's tax return, the client is not happy with how much he owes and he asks to have it prepared elsewhere.  Would you still charge him the full prep fee given all the time spent in preparing the return, or would you just say good riddance and not worry about the fee?

[Dave T]

I had a somewhat similar situation last year. I had prepared a return and clients went somewhere else. 

I gave them them their documents back as well as a bill. 

To my surprise, they came back to me this year.

[ETax847]

Funny how that worked out.  Did they actually pay the bill?   

[Yardley CPA]

If your invoice reflects what you feel is a fair and reasonable price for their return, let them walk.  It's difficult to see clients leave but at this point in my tax "career" I'm not looking to give my services away.  I think my rates are below market in some instances, but I'm okay with that.  I'm not looking to decrease them more, if anything they will continue to go up in the future.    

[Dave T]

Yes, they paid me.

[Lion EA]

Give them a bill. But if they don't pay it, don't fret. Give them back the documents they gave you and wish them well. You don't want clients who are shopping for the best outcome without planning with you before the year ends to improve their own outcome.

[Possi]

I give them their papers back and wish them well. It happens rarely, and I do not take the client back. No judging... It's just how I roll. 

[Catherine]

I'm split between Lion and Possi.  I'd give them a bill with their original documents, and not sweat it if they don't pay.  But, if they don't pay it, I won't take them back.  If they come crawling back, they have to pay the unpaid bill, and pre-pay my guess for the current year, before I'll accept new documents.

[Pacun]

I just give them their papers back because I know they will eventually do the same with another preparer and they will get billed.

When I get new people, I quickly open a sample return matching their situation and I plug in the numbers.  I tell them... you owe about XX or you will get a refund of about XX. I also tell them how much I will charge them. if they decide to stay, I start entering their info on my computer. If they don't like it, I give them their papers back and give them directions to H R block.

I am pretty sure H R Block employees will not do estimates and they charge a lot.