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Clients that can't pay taxes - Advising

How to advise clients with IRS and state liabilities due 4/15:

What do you advise when client doesn't have funds to pay?  Pay IRS first? Pay State next?  

Does Lacerte or any software help you calculate total interest paid on different payment plan scenarios?

Is this advisory service an added value that you bill for?

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4 Comments 4
IRonMaN
Level 15

The standard advice is to pay whatever you can now.  And since telling them that doesn't take more than a few seconds, no, I don't charge extra.


Slava Ukraini!
BobKamman
Level 15

It depends on what state is owed.  I haven't been asked in recent years, but I used to advise clients to pay Arizona first, because they were even more difficult to deal with than IRS.  Also, the amount owed was often low enough that they could be paid off and only one revenuer had to be dealt with.  

(Arizona:  Where we enforce laws against women enacted before women could vote!)

So entrepreneurial!

I'm going to extend it to 10 minutes, puff my brain out, maybe bring the forehead sweat to make the client look like I have an original thought, then charge $500. 

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California. CA is not as bothersome as IRS in my experience.

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