Client Records

[Tax Bird]

In anticipation of ridding myself of a troublesome client, (see thread regarding 'Client BS'), do any of you obtain any kind of receipt? I'm thinking I would make a checklist of all files boxes returned to the client and have them sign off when the boxes get handed over. I'm thinking of just listing the box label but was wondering if specific file contents should be referenced as well.

Specific file references don't strike me as very practical but it may be worth it if any of you have encountered problems where clients come back years later saying they didn't get all their docs.

Any thoughts on this? I'd be interested in your thoughts on how you've done this is the past.

[joelgilb]

In a situation like this (legal advice here), make a full inventory of the documents you are returning and have him sign a receipt when he picks it up.

Also, draft a letter firing your client to make it clear. Years ago taught a legal course to CPA's on avoiding Malpractice claims. One of the main things is to keep your clients friends, even when firing them! Make the letter professional, explain verbally that you feel this return is out of your league and you want him to get someone than is better equipped to prepare his work, so he is protected in an era when IRS has become so pervasive.

Clients that are friends or like you are far less likely to file claims with the Dept of Prof Reg, or file suit against you, even when you really do something wrong (although clearly this is not the case here).

Also, see my post to your other question as a poss alternative.

[Tax Bird]

*Ugh!* That's what I thought...which is why I'm in on a non-tax season Saturday. I've got about 12 legal size boxes of this man's crap to inventory.

Do you think the letter should be sent registered or is email sufficient? On the few occasions I've done this in the past, I've done it by email. Seems a lot less confrontational somehow.

And when you say "explain verbally that you feel..." are you saying this shouldn't go in the letter?

Thanks Joel! Your advise is very much appreciated.

[RoyDaleOne]

Great advice!

I try (not always successful) to return all client records, including ones I prepare such as depreciation schedule, every year.

Another CPA firm in town sends a prepaid postcard with a checklist of items mailed and a place for the client to acknowledge receipt.

[joelgilb]

And when you say "explain verbally that you feel..." are you saying this shouldn't go in the letter?

Thanks Joel! Your advise is very much appreciated.

Yes, verbally and not in the letter, its more personal for one and I don't think you would want in writing that your not capable of doing the job. Too permanent a record for my liking.

[Tax Bird]

I see what you're saying. Except in this case, the subtext could be something along the lines of "I am not capable (of assisting you in your embezzlement)" or "I'm not capable (of aiding an abetting a crime)" or "I'm not capable (of professional suicide)".

Nonetheless, I will defer to you on this matter and subdue my more devilish side.

Thanks again!

[kcjenkins]

You don't have to say that you are not capable of doing the job, you can say that you do not have time to handle it as it needs to be handled, or you do not have the time to deal with the IRS followup that such a return is sure to require, etc. Just resist the more tempting ones you mentioned, and don't put either in writing, including in an email. And even over the phone, assume it is being recorded, and don't let him pull anything out of you that you don't want to explain in a court room. Use the, "I'm sorry, I have to go now, the fire alarm is going off." if you have too. ;~)

[Tax Bird]

You don't have to say that you are not capable of doing the job, you can say that you do not have time to handle it as it needs to be handled, or you do not have the time to deal with the IRS followup that such a return is sure to require, etc. Just resist the more tempting ones you mentioned, and don't put either in writing, including in an email. And even over the phone, assume it is being recorded, and don't let him pull anything out of you that you don't want to explain in a court room. Use the, "I'm sorry, I have to go now, the fire alarm is going off." if you have too. ;~)

Thanks KC. I will resist.

[kcjenkins]

I really liked the replies you wanted to use, by the way.

[BulldogTom]

Something along the lines of

"Due to changes in your tax and accounting needs and recent reorganization of my firm's staffing levels, I am unable to allocate the resources required to adequately provide the services you require. I am sure you understand that I cannot open an engagement where I cannot guarantee the result is a professional, complete, fully researched and defendable set of accounting records and tax returns"

You may use this if you like it.

Tom

Lodi, CA

[Lion EA]

Oh, I liked that a lot, Tom. I copied it into a file to save, 'cause I know I'll need it someday. Thank you for sharing.

[joelgilb]

Very nice Tom! And Short, sweet and to the point!

[Tax Bird]

Something along the lines of

"Due to changes in your tax and accounting needs and recent reorganization of my firm's staffing levels, I am unable to allocate the resources required to adequately provide the services you require. I am sure you understand that I cannot open an engagement where I cannot guarantee the result is a professional, complete, fully researched and defendable set of accounting records and tax returns"

You may use this if you like it.

Tom

Lodi, CA

Ooooooo! I like this! Thank you.

[BulldogTom]

Ooooooo! I like this! Thank you.

You are welcome.

I am glad to help, even though I still think there are fees to be collected from this client. He just stuck 100K in his bank account, he can pay you.

Tom

Lodi, CA