Opinion Needed: What would you do?

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#1
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OH
A year ago this month my cousin referred me to one of my first big clients when I decided to go out on my own. This is a construction company that has been in business for a number of years but never had any formal bookkeeping process setup, etc. As the business was growing, they hired me to try and help them get organized and I will admit, it has been a difficult task. When we first engaged to do business, they were going to get me their 2020 numbers and I was going to begin bookkeeping on 1/1/21. Well we ended up having a little bit of a difficult discussion a couple months later when they still hadn't given me their 2020 numbers and were upset that they were paying someone to handle their accounting for them (again, our conversations repeatedly were I begin in 2021 and my cousin was there for all of the beginning discussions). Seeing where this was going and knowing they were not happy I did what I could to salvage the situation and pulled together their 2020 numbers and did the best I could with them to get them filed with what we have. I believe that this client has income sources that they are not telling me about. Admittingly, a lot of people have small sources of income for cash, etc. I understand that. But I feel like he's always trying something new or looking at some exotic crypto currency investment, etc. One of his smaller LLC's that I help do the books for had a random deposit of $5,000 in it a month ago. I asked the client where this came from because I didn't see that it was transferred from his main business and him and his "manager" said something jokingly to the extent of "it just was" or something like. On top of this, the client gets a $1,000,000 SBA loan to start a trucking company. I feel like I've had enough but man as a smaller growing practice I'll surely miss the monthly fee!
 

#2
Frankly  
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These clients don't get better with age. If you do a "good" and "obedient" job for him, you may get other referrals to like-minded business persons. So figure out what kind of practice you want to pursue, and don't go in other directions. There's lots of ethical fish out there.
 

#3
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North Shore, Oahu
I would not work with this client under any circumstance. I'd rather just go wait tables and be poor.

I'm not kidding.

You obviously don't like him.

You will live a life of stress with these types.


Here's what I do:

As part of a periodic review of the Firm's objectives against currently rendered services and client base, it has been identified that XXXXTax ServicesXXX, can no longer provide any future services to [[[[]]]. As a result, we will unfortunately be unable to provide you with any professional services moving forward.

We wanted you to know in advance, and it would be prudent for you to reach out to a tax professional as soon as practical to facilitate the filing of all of your personal and/or business income tax returns by the applicable deadlines. Failure to file the respective returns by the pertinent deadlines may result in the assessment of penalties and/or interest and other unforeseen consequences.

This concludes our engagement for tax preparation services. We sincerely appreciate your consideration and wish you all the best,


Done - no more stress.

This guy is not paying his fair share and sending his kids to private school (for example) while other taxpayers are paying into the system and can't afford it. I wouldn't allow these types anywhere near me or my practice.

When (if) he asks why, tell him you already told him.

It is not within the firms goals and objectives to serve him. If he wants to know your firm's goals and objectives, that's private.
 

#4
novacpa  
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McLean, Virginia 22101
I tell guys like this to "google" "DOJ Tax Prosecutions" and read and read and read the many cases where
tax cheats are sentenced to prison.
All it takes is a referral to CID, with a $1-million borrowed from SBA, the numbers are certainly material.
 

#5
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The Office
If you can no longer trust the client, you should let them go.

Especially so if they're giving you duper's delight grins when you bring up not seeing the other end of a transaction for what they assert is a transfer and not revenue.
 

#6
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Location:
OH
Frankly wrote:These clients don't get better with age. If you do a "good" and "obedient" job for him, you may get other referrals to like-minded business persons..


His dad has asked me to file late tax returns, one of his sales men have asked me if I can help people get caught up, and another person at his office had some funny IRS and State stuff going on.... Birds a feather?
 

#7
HowardS  
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2820
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Location:
Southern Pines, NC
When I run into a client like that I tell them they may need significant representation that I in my lowly position cannot provide them. I refer them to an EA or CPA. Can I put your name on my list??? :P
Retired, no salvage value.
 


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