Can I View The Return First?

Do you allow first time clients view the return without paying first? Obviously I don't e-file the return, but I'm asking specifically to see a draft, non-filed version, before paying?

Most people its probably not a big deal, but when people want to see it because they're not happy with the result I get nervous because I don't want to invest all this time for them to go somewhere else or attempt to recreate the numbers in turbo tax on their own and not pay me. Obviously the engagement letter is signed, but who wants to go through with all that hassle?

Probably 2/3 of my clients pay when they send the info, the others pay later. I email their returns (password protected) for signature to efile....and trust them to pay me. I know my clients, so usually not a problem.

I think it would be weird to hold the return for ransom. You should just ask for payment in advance....

I'm happy to share a copy of the return (usually watermarked) prior to finalization. I find there may be items they didn't communicate well or I didn't ask about (for various reasons), especially for first time clients.
As far as payment is concerned, if that's a question, I have to ask myself if they should even be a client. Usually, that answer is 'no', but better to find out sooner than later.

99.9% of my clients view their return before signing. I provide them a pdf or hard copy with the appropriate watermark.

100% are supposed to look at it before signing.

My standard process is to provide a watermarked draft with efile authorizations. Clients pay after the return has been filed and final client copies have been issued. I've been fortunate that the overwhelming majority of clients pay on-time. My clients are professionals. If that wasn't the case I'd consider instituting a blanket 100% retainer due when the engagement letter is signed for all clients.

There are situations that I do utilize retainers. Specifically if there are years of noncompliance and the fee to remediate is large. To eliminate risk of not getting paid, I generally utilize retainers in that situation.

I've always provided if the client wanted to view it. A majority don't care if they're happy with the tax position.

Thanks everyone for your input.

Keep in mind post #6. When the client signs the jurat on the 8879 they're signing that they've reviewed the return.

It's a good idea to deliver drafts either before or simultaneously with the efile authorizations. It's on the client to review, and half don't, but you've done your part by providing them with copies of returns to review before signing.

Thanks for the input MvT.

Lots of great input already.

Let me add that my experience with non-payors or "draft-copiers" is so seldom, that the fear of a client not paying is totally not a factor (it has been 0.2% of gross or so).

This is likely also due to retainers I require for certain types of clients - but that's only about 5% of all clients too (for which I feel I need a retainer).

With only a very small number of exceptions, every single tax client pays at least 50% of their estimated or known fee for the year upfront. I won't even schedule them without it. So yes, I release the watermarked copies of their tax returns in conjunction with a video review. I do not file unless they have paid me in full, but again, there are "some" exceptions to that rule.

I send the return copy, invoice payment link, and e-signature link together. Maybe I’ve been fortunate, but I haven’t had many issues getting paid.

99.9% of my clients view their return before signing. I provide them a pdf or hard copy with the appropriate watermark.

This is what I do…. BUT for the higher volume preparers who may not know their clients, this may be problematic.

I cant imagine a store front sending you a draft.

I've seen high volume preparers put the draft returns and the efile auth in one pdf package and send that across for esignature. It's not that inconvenient and the client has no excuse at that point.

If it is an issue, you need to utilize something like what TaxDome can do when connected to CPACharge or Stripe and lock the returns to the invoice until it is paid. Of course, this is assuming you actually use TaxDome for invoicing, but high volume firms easily could. I think the invoicing sucks, which is why I don't utilize it--plus, I don't need to. My clients always pay me very timely. I honestly cannot remember the last time I did not get paid immediately or at least within a week, or ultimately set up a payment plan for a client that I allowed to accumulate $25k of unpaid fees to me (my fault).