An odd client call--perhaps the IRS or am I paranoid?

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#1
Taxman  
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I received a really odd call last week from a client who never really said how he received my information--I presumed from the IRS website since I am an EA.

It was a REALLY long call so I will summarize it. 1) He had no money--literally $50 in his account, 2) He had not filed taxes in 10 + years, 3) he just received an IRS levy on his bank account, 4) In an effort to make himself more appealing as a candidate for an offer in compromise he deeded his house to his relatives and rents it from them and 5) hadn't received the first piece of correspondence from the IRS regarding any tax debts or SFR's.

He seemed to be barking up the tree to get me to do a contingent fee and to participate in some of his scamming in order to get an OIC approved.

Is this something the IRS does, calls Tax Preparers to see if they can trap them into shady dealings or advice?

In any event, I gave him straight advice.
 

#2
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I've never heard of IRS doing this, but if you were on their radar due to a different return that they may have thought was borderline, some zealous RO may have called you just to see what you would do.

More likely, it's someone you just want to stay as far away from as possible from what you are saying, both from Circular 230 issues and pure greed, as it is unlikely you would ever collect a dime.
Jim
Pettit Financial Services
 

#3
Taxman  
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Yeah the early career me would have taken him on as a learning project and spent months straightening out his mess for nothing. I never would consider taking him on now---the paradox of representation work, those who really need your services can't afford to pay for them.

He said that he also didn't have any records for the business other than shoe boxes full of receipts (oh year he also co-mingled business and personal accounts).

I am SURE I am not on the radar for any returns, I'm as straight as the they come and fairly low volume at this point. I'll chock it up to a very bad potential client. Thanks for the reply
 

#4
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Is this something the IRS does, calls Tax Preparers to see if they can trap them into shady dealings or advice?

No, but I've gotten several calls from crazies like this over the years. The last one I had (that I actually accepted as a client) was about five years ago, he was 7+ years behind on his tax return filings, behind on child support, divorced, and a recovering drug addict. Oh, and he broke his back (while high) jumping off a roof on a dare. So he had tons of unpaid medical bills as well. No assets, income was about 55K (used to be 200K +, as an insurance salesman but he messed up his life so bad that he lost 2/3 of his clients). Wanted desperately to do an OIC, it was rejected, and that was that.

My point is that these clients really do exist, they are everywhere, and they do call around, and they always want to talk and give you their long sob story. I feel bad for a lot of them (especially when it's a medical tragedy) but there's not a lot you can do, unless you want your practice to become a charity.
 

#5
eze  
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That one would definitely require a RETAINER, but I doubt it's anyone from the government.

Tax_Writer....any idea why the OIC was rejected in your case? Sounds like a pretty hard case?
 

#6
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Tax_Writer....any idea why the OIC was rejected in your case? Sounds like a pretty hard case?

No, not sure why the OIC got rejected other than the usual, "we can probably collect more from this guy"--that was 5 years ago or so, and the client didn't want to appeal. The IRS wanted to know tons of information about his family and girlfriend (who he was living with at the time) and the woman didn't want to give them any information, the IRS employee handling the case got pissy about that, I think. He was still hitting the sauce, so his responses to us were slow and spotty as it was.

I don't do any OIC's anymore, it's not for me.
 

#7
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I also got one a couple of weeks ago. He said he hadn't signed a return since the mid-1980's because he "figured out that he was giving all his rights away". He hadn't filed at all in the last 7 yrs. The IRS now has a lien on his house. He says he doesn't owe anything because he has stock losses. I told him that I could prepare his returns but that he would have to sign them. He said that he would not sign any tax returns. I said I couldn't help him. He pressed and I told him he needed to talk with a tax attorney. He said they are too expensive. He kept pressing me to take him as a client. He wanted me to feel sorry for him since he was over 80 yrs old. I told him that I don't do representation (even though I'm an EA) and that I could not take his money when I couldn't help him. Eventually I got him off the phone.
Last edited by Bottom Line on 14-Jul-2014 7:10pm, edited 1 time in total.
 

#8
Taxman  
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Thanks all, I guess it is not just me then. :D

I bascially provided some very generic-but by the book--advice and dumped his call after 30 minutes or so. I guess I can see how people get themselve into these positions but not how they expect someone to take their case pro bono. I have a gigantic heart and hate to tell people no. But I really do not have the time to deal with pains like this.

TM
 

#9
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Why is it that people don't think twice about paying a doctor or lawyer but think we work for free?
 

#10
CathysTaxes  
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BL, my brother in law, the doctor, would disagree with you. IME, these people have plenty of money to buy cars and other pleasures, but when it comes to filing and paying their taxes, they have a million excuses.
Cathy
CathysTaxes
 


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