I’m getting sick of this client

[joanmcq]

New client with ‘easy’ return is becoming a PITA. Been using TurboTax and hired me because this year he bought out his partner on a duplex they owned. Lived in one half, rented the other. 
So I’m inputting the depreciable assets, and I notice that the rental half is $368,000 with $100,000 for land. The duplex was bought for $930,000. It seems to me he is depreciating the entire rental unit and not just his half. When I asked him about it, he said “I just followed what TurboTax told me to do”. It seems the first two years The whole property was rented. I guess TurboTax didn’t ask about taking it out of use. Or he didn’t understand what they were asking. So there’s only 6 years of over depreciation. 
 

He’s starting to push back on correcting the depreciation.  He keeps insisting his return was ‘easy’. 
 

So do I fire him? I just sent a stern email. 

[BulldogTom]

3 hours ago, joanmcq said:

He’s starting to push back on correcting the depreciation.  He keeps insisting his return was ‘easy’. 

If you don't set the ground rules for the engagement this year, you will regret it.   

Personally, I would tell the client that it is not your practice to produce incorrect tax returns, that it is his choice to correct the prior years, but if he does not, you cannot produce a correct return this year because the carryforwards are incorrect and you will not sign a return you know to be wrong.   Make him make the choice to stay or go.

Tom
Longview, TX

[Lee B]

The only way I would prepare this return is with a 3115 correcting the depreciation which would give him a 4 year forward spread on paying the additional tax.

I would clearly state that in an email and as Tom says," Make him make the choice to stay or go."

[Lion EA]

And, with his "simple" pricing adjusted for the 3115 and for his time suck to you of being a PITA.

[jklcpa]

3115 charges as a separate line item too with the explanation that that is the cost of his choosing to not hire a professional in the first place and/or using TurboTax incorrectly. 

That's assuming you think you can train him to be a worthwhile client, otherwise dump him now without wasting any more time.

[Catherine]

Either he agrees to correcting the depreciation using Form 3115, or he can go back and cry to Ttx. I understand reluctance, but he's pushing into wanting to cheat because he sees it as troublesome and possibly expensive to be honest. Dishonesty is always too expensive for me ever to work with. 

[Max W]

This is why TT hires EA's and CPA's to assist DIY clients in preparing their TR's.   Clients pay additional fees for phone line help.

If he doesn't want to play by your rules, send him back to TT.

[Gail in Virginia]

On 2/19/2023 at 7:48 AM, BulldogTom said:

If you don't set the ground rules for the engagement this year, you will regret it.  

I totally agree with what Tom said here.  If he pushes you into something you know is not correct this year, he will continue to push in the future. 

[FDNY]

To answer your question, I vote for firing him.  With the work involved and his realization that he will need to correct and pay tax he will probably give you a hard time when he gets your fee.  End it now, you will feel better.

[joanmcq]

Well, he wasn't being as big a PITA as I supposed, but then got an email (right after the one where he said he wanted the return done right) and his ex hired a CPA and that CPA is going to do both returns.  Clean my hands of him.

And sent a bill for $500. whether that gets paid or not, I really don't care.