How Long Before Disengaging?

How long do you wait until you disengage a client who you've done stuff for in the past? Each year I have a handful of 1040 clients that seem happy with my services that we cannot get a hold of in the next year who make no attempt to communicate with us.

Right now, I have a client in particular who I've reached out to a few times in the last few weeks and haven't heard back. This is one of a handful I have struggled to hear back from for this year.


Thank you!

I would only reach out to them twice the most. After that the ball is in their court. Spend the time you would put into this client on focusing on current and prospective clients.

I would only reach out to them twice the most. After that the ball is in their court. Spend the time you would put into this client on focusing on current and prospective clients.

Agreed.

I would only reach out to them twice the most. After that the ball is in their court. Spend the time you would put into this client on focusing on current and prospective clients.

But how long into tax season do you notify them that they are no longer a client? If I reach out to someone twice and they don't respond, I agree that getting rid of them is the best course. However, how long into tax season do you wait for that?

I wouldn't tell them they're no longer a client, unless you just want a reason to get rid of them.

I just (eventually) tell them that without an engagement letter I won't be taking any action on their behalf including but not limited to filing extensions, advising on extension payments or notifying them of deadlines. That usually motivates them to contact me if they do intend to have us prep the current year returns.

If we get through the deadline and I still haven't heard from them, I'll go through the formal offboarding process during the summer.

As far as how many times to contact. 2-3. If I value the relationship, I usually call at least once and leave a voice message in case they're having problems with email. If it's a client I wouldn't mind losing I usually skip the call.

It goes without saying that procrastinators like this go on extension.

How old is the client? If elderly, they maybe experiencing cognitive issues. I've been known to Google a name. Then I find their obituary.

Earlier this week, I finished following up with the handful of folks I hadn't spoken with since completing their 2021 return.

I forwarded my previous email and noted that "If you'd prefer not to work with me this year, please let me know and I'll take you off my list. If I don't hear from you, I'll assume you're otherwise taken care of."
Three of the five got back to me within 24hrs. I won't follow up again.

To MvT's point, these were all folks I was rather ambivalent about keeping. More significant relationships get weekly phone calls three weeks in a row and I'd inactivate them after that. Never had it go that far, though.

I send an organizer to everyone that was a client the previous year and I don't do any follow up. If they don't bring me their stuff or call for an extension, I figure they have gone somewhere else. Some are just flakey and will file 2 years of taxes every other year, its up to them to contact me. I only had one person last year send me a note and one person this year (so far) email me saying they were going somewhere else and I'm happy about the one this year. I usually end up with 3-5 new clients for everyone that leaves so I spend very little time thinking or worrying about it.

I send an organizer to everyone that was a client the previous year and I don't do any follow up. If they don't bring me their stuff or call for an extension, I figure they have gone somewhere else. Some are just flakey and will file 2 years of taxes every other year, its up to them to contact me. I only had one person last year send me a note and one person this year (so far) email me saying they were going somewhere else and I'm happy about the one this year. I usually end up with 3-5 new clients for everyone that leaves so I spend very little time thinking or worrying about it.

What if one of your former clients is laid up in the hospital and too ill to think of contacting you or what if one of them has come down with dementia since last tax season? If I don't hear from a prior client in the new year, I email them and, if I don't hear back, I'll call them.

I send an organizer to everyone that was a client the previous year and I don't do any follow up. If they don't bring me their stuff or call for an extension, I figure they have gone somewhere else. Some are just flakey and will file 2 years of taxes every other year, its up to them to contact me. I only had one person last year send me a note and one person this year (so far) email me saying they were going somewhere else and I'm happy about the one this year. I usually end up with 3-5 new clients for everyone that leaves so I spend very little time thinking or worrying about it.

What if one of your former clients is laid up in the hospital and too ill to think of contacting you or what if one of them has come down with dementia since last tax season? If I don't hear from a prior client in the new year, I email them and, if I don't hear back, I'll call them.

Well I send out the organizer in January, they (or a family member) have a good 3 months to contact me to do the return or file an extension. I have had family members reach out to me so I don't see it as being an issue. I don't see it as my responsibility to remind people when taxes are due.

I send an organizer to everyone that was a client the previous year and I don't do any follow up. If they don't bring me their stuff or call for an extension, I figure they have gone somewhere else. Some are just flakey and will file 2 years of taxes every other year, its up to them to contact me. I only had one person last year send me a note and one person this year (so far) email me saying they were going somewhere else and I'm happy about the one this year. I usually end up with 3-5 new clients for everyone that leaves so I spend very little time thinking or worrying about it.

What if one of your former clients is laid up in the hospital and too ill to think of contacting you or what if one of them has come down with dementia since last tax season? If I don't hear from a prior client in the new year, I email them and, if I don't hear back, I'll call them.

To be fair, in those situations the client likely has reasonable cause for any penalties related to failure to file.

How many of us send out engagement letters produced by our tax software that say something like “The engagement will end when the return is filed and accepted?” Surely, in that case, the only way to renew the engagement is to sign and return an engagement letter for the next year. If a client does not do that, it really isn’t my problem. If I get in touch with them, how many clients will take that as a sign the return will definitely be completed before April 15th-18th?

Bottom line - if a taxpayer doesn’t care about getting their paperwork together timeous let, why should I?

If I wish to disengage with a client simply due to unresponsiveness, I usually do this in November.

My turnaround time of 6 weeks is well disclaimed, so I don't worry so much about the deadline when they re-appear on April 1st - its on them.

If they get back to me and file before 15th of October, I finish them up and consider disengagement in November, depending on whether or not I want to keep the client.

If we file an extension and we do not finish by the 15th of October, I will almost always disengage in November - even if work is incomplete.

I keep a spreadsheet with the November "short list" so I don't forget - then I go to town getting rid of all "deserving" clients when the time comes.