Doesn't Need to File, Do You Charge?

Taxpayer sends in tax documents. You review them and to make sure you don't miss anything, you enter the info into your software and there's no refund or tax owed.

Do you charge? If so, how much?

Yes, and my minimum fee for the applicable tax return. It is their choice but I already reviewed it and they agreed, so it is either file and allow statute of limitations to kick in or them risking potentially overlooking something.

Just because there's no refund or tax owed doesn't mean they don't have to file.

Are you sure they aren't required to file? See the 1040 instructions. If they aren't required to file and had nothing withheld, that could have been caught before prep.

[quote="ManVsTax"]Just because there's no refund or tax owed doesn't mean they don't have tofile.

Are you sure they aren't required to file? See the 1040 instructions. If they aren't required to file and had nothing withheld, that could have been caught before prep.[/qquote

Yes, I was sure in this particular case.

Taxpayer sends in tax documents. You review them and to make sure you don't miss anything, you enter the info into your software and there's no refund or tax owed.

Do you charge? If so, how much?

I just reviewed one such return this year from a relative of a client. I just charged her flat $50. It was not complicated.

Previously I have had older folks with K1, 1099-Div/B that required more work so they paid the regular rate even if it mean a 0 return.

On my tax software there is a quick data input screen to just check if a tax return is required.

We file all college kid returns for parents even if filing is not requires because filling out the FAFSA is a PIA without a tax return on file. Maybe bump their fee a tiny bit but more of a courtesy.

I think even for elderly, it is better to file a return every year rather than trying to figure out down the road why they did not file.

I have several clients that really don't have to file due to the amount of their income. I have found that some preparers just aren't doing thefederal or state return. However, many of the older single or widowed clients can file for income credits in MA called the "Circuit Breaker" credit depending on their income. It is related to their residence and real estate taxes paid. Many are receiving over $1,000 per year by filing for this credit. Perhaps preparers should check if these types of credits are available in their client's state before telling them they don't have to file at all. A lot of preparer's don't appear to check these types of credits because it is for the state, and It really makes these clients happy and they certainly don't mind paying me for doing the return if they get this type of refund. You don't have to file the federal, but I file both federal and state in this situation.

All great suggestions. I have one incredibly cheap client that wants me to tell him how much to pull out of his 401K and not only pay zero tax but he doesn't want to file a tax return and he thinks i should do this for free.

It's even worse! He texted my husband on Sunday to get the info and on Monday asking hubby what my response was.

I have several clients that really don't have to file due to the amount of their income. I have found that some preparers just aren't doing thefederal or state return. However, many of the older single or widowed clients can file for income credits in MA called the "Circuit Breaker" credit depending on their income. It is related to their residence and real estate taxes paid. Many are receiving over $1,000 per year by filing for this credit. Perhaps preparers should check if these types of credits are available in their client's state before telling them they don't have to file at all. A lot of preparer's don't appear to check these types of credits because it is for the state, and It really makes these clients happy and they certainly don't mind paying me for doing the return if they get this type of refund. You don't have to file the federal, but I file both federal and state in this situation.

We have this as well and the application refers to specific lines on the 1040. El Cheapo sent me a distorted image of his application asking me what to do.

It's even worse! He texted my husband on Sunday to get the info and on Monday asking hubby what my response was.

Is your husband still directly involved in your tax business? If not, IMHO that text message has no bearing. The client MUST communicate with you or your designated person. And I think you know what the response should be. Send him a huge invoice for retainer to be paid before any services are delivered. See what the reaction is. If he want to do business with you he will pay it or go elsewhere. Either way you put a stop to freeloaders.

I had a client who started of fine but later became a PIA. Calls and emails almost every week. I presented a retainer invoice and it stopped. 2020 was the last tax return I prepared. Good riddance.

BTW I don't accept any text messages. Client is informed of that at the get go

It's even worse! He texted my husband on Sunday to get the info and on Monday asking hubby what my response was.

Is your husband still directly involved in your tax business? If not, IMHO that text message has no bearing. The client MUST communicate with you or your designated person. And I think you know what the response should be. Send him a huge invoice for retainer to be paid before any services are delivered. See what the reaction is. If he want to do business with you he will pay it or go elsewhere. Either way you put a stop to freeloaders.

I had a client who started of fine but later became a PIA. Calls and emails almost every week. I presented a retainer invoice and it stopped. 2020 was the last tax return I prepared. Good riddance.

BTW I don't accept any text messages. Client is informed of that at the get go

He's rarely involved. His friends like to see him so I will arrange meetups so they can.

Most clients don't have my cell. Those that text my landline and then complain that I don't respond get reminded that they are texting a landline. Hubby tells anyone who calls or texts him to contact me directly.

I will not answer cellphone calls from clients. If it's during work hours, I will call them at my convenience and inform them when I am working, the cell is on do not disturb (actually it's not, I screen my calls). If it's after hours because they have a bug up their butts, they have to wait until business hours and when I darn well feel like it.

Hubby was the complete opposite. Clients had his cell and called 24/7. I read him the riot act when he answered the phone while in bed and the client asked for me. I was doing IT work for hubby and client had a question.

Sometimes, the long time clients try to reach me thru him. He tells them to contact me directly.