Just one simple question.

How do you tactfully fend off tax questions?

A friend just texted me about his nonprofit organization. He wanted to know if it should be a C corp or S corp. It is a simple question but he is not my client. I hesitate to give a quick answer to encourage more of these questions in the future,

In situation like these, how would you respond? I would like to be polite and tactful and want to tell them that they need to pay me for my knowledge. Thank you.

See if anything here helps.
viewtopic.php?f=11&t=23588

Tell him you don't do non profits and he should direct his questions to his tax pro.

See if anything here helps.
viewtopic.php?f=11&t=23588

Thank you so much! Great read!!!!

Tell him you don't do non profits and he should direct his questions to his tax pro.

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I do non profits. Just do not want to be the non profit to give out free answers.

How do you tactfully fend off tax questions?

A friend just texted me about his nonprofit organization. He wanted to know if it should be a C corp or S corp. It is a simple question but he is not my client. I hesitate to give a quick answer to encourage more of these questions in the future,

In situation like these, how would you respond?

You ignore the text for 48-72 hours. Then you frantically text him back, letting him know that you're slammed (tax season) and that you'll get back to him as soon as you can.

Then you don't get back to him.

That is half joking, half serious.

If he's a referral source or active in my business circles, I would entertain short questions here and there, but it would be at my convenience. Maybe if he treats to a nice dinner ($$) I'd give some high level answers to some questions.

Well make sure you tell him a C Corp if you do. I'm dealing with a client situation right now because a former accountant/CPA file an S election on a non-profit and now we have an attorney involved. Not fun.

I admit its a tough balance to have, but your friends and family know you're knowledgeable about the topic. Giving a small bit of advice here or there can help you become more a referral source in the future. This again is a fine line though. I have a core group of people I don't mind answer stuff for because their my good friends and if I need something I know they'll help me in exchange some day.

If this isn't one of those types of "Friends", then I would simply respond with, that's a great question, let's setup a time to discuss. As it's nearing busy season my time for consultations is getting limited so I do have to charge for my time, I hope thats okay. If you're good with that, then lets setup a time.

When people call me stating they set up a new business and need help figuring out what todo, I tell them I provide a new business coaching session that is $200 where we can go over how to pay yourself, how to know how much to withhold in taxes, and any questions they have. 9 out of 10 bulk and I never hear from them again!

Last time this happened I emailed him an engagement letter with the anticipated fee range. I didn’t hear back.

It takes less time to answer the question than it does to post about it here.

It takes less time to answer the question than it does to post about it here.

Until it results in a follow-up question

How close of a friend?

It's not the end of the world to give free advice to a half-a-dozen or so of your closest ones. You know ,the types that when you were younger would get out of bed and come help you change a flat tire back in the day.

I personally for example name 6 friends in my head in advance and I just help them for free when they need it.

But not by text.

But if they're not that close, then tell him "it depends on a lot of factors, and to provide a thoughtful answer, I'll need more information". Tell him the fee and have him schedule an appointment. There are very polite ways to do this.

Tell him you don't do non profits and he should direct his questions to his tax pro.

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I do non profits. Just do not want to be the non profit to give out free answers.

Does he know what?

I don't. I give away as much free information as I am able. I don't mind doing it. I rather enjoy it.

You ignore the text for 48-72 hours. Then you frantically text him back, letting him know that you're slammed (tax season) and that you'll get back to him as soon as you can.

Then you don't get back to him.

That is half joking, half serious.

If he's a referral source or active in my business circles, I would entertain short questions here and there, but it would be at my convenience. Maybe if he treats to a nice dinner ($$) I'd give some high level answers to some questions.

After ignoring his texts for one day, I felt that I needed to respond to him. I came back to the forum and saw your advice.

I see your point if he is a referral source or active in the business circles. In this case, I do not know him that well and he has not shown to be a referral source yet. He is someone that I met recently. I guess i just want to set the boundary but not a full block on him from becoming a client.

I don't want to be treated a nice dinner because it will possibly turn into a free consulting session.

Well make sure you tell him a C Corp if you do. I'm dealing with a client situation right now because a former accountant/CPA file an S election on a non-profit and now we have an attorney involved. Not fun.

Thanks! That is one of the questions and he was at bank opening a checking account. I was going to tell him the answer.

I admit its a tough balance to have, but your friends and family know you're knowledgeable about the topic. Giving a small bit of advice here or there can help you become more a referral source in the future. This again is a fine line though. I have a core group of people I don't mind answer stuff for because their my good friends and if I need something I know they'll help me in exchange some day.

If this isn't one of those types of "Friends", then I would simply respond with, that's a great question, let's setup a time to discuss. As it's nearing busy season my time for consultations is getting limited so I do have to charge for my time, I hope thats okay. If you're good with that, then lets setup a time.

When people call me stating they set up a new business and need help figuring out what todo, I tell them I provide a new business coaching session that is $200 where we can go over how to pay yourself, how to know how much to withhold in taxes, and any questions they have. 9 out of 10 bulk and I never hear from them again!

I like your approach. It is polite and assertive. Thanks!

Last time this happened I emailed him an engagement letter with the anticipated fee range. I didn’t hear back.

Good idea but I don't even want to start typing an engagement letter until I got a verbal commitment.

I

I don't want to be treated a nice dinner because it will possibly turn into a free consulting session.

If he picks up the tab and its understood in advance that he will, it's not "free" is it?

Bring the wife or a lady friend and make sure the average for the place you choose ends up being well over $100 per person.

Quid pro quo.

It takes less time to answer the question than it does to post about it here.

I agree but this has come up a couple of times lately.

One time it is as

suggested. The friend came back with more information and more questions and she stated that she was planning to do her own tax returns.

Cathy, I am going to reply with a polite response and inform him about what help i can offer and my hourly rate.

In general, the free advice area isn’t a hot button issue for me. If I know someone or even someone was referred to me, I have no problem answering some basic questions to get them on the right path. Most the time these are easy answers to questions we get all the time, I’m not doing a research project and going into anything complicated without an engagement.

Tax engagements are relatively easy to get. I figure what goes around eventually comes back around over time. The value of a client is repeatable business overtime, not a one-off engagement.

If it’s for a friend…why not?

Not sure if anyone remembers:

“Keep smiling, keep shining
Knowing you can always count on me, for sure
That's what friends are for”