Getting rid of troublemakers

[athaureaux6]

Hi online community, I need advice on a way to "dump" some customers who always come the last day, unprepared, with missing documents, and with bad attitude. I need to get rid of them politely. Thank and have a great day. 

[qbteachmt]

Exactly what you stated:

"I'm sorry, but since this is the due date, I'm already booked for clients and cannot help you."

Don't justify to them how you run your business. Be curt and direct.

[Just-Lisa-Now-]

for good? theres a sample termination letter here..Im sure many tax preparers are gearing up to send a bunch of these out this summer....its one of the first questions I ask a potential new client "what happened to your old preparer?" if they got sent a letter telling them that they couldn't do their returns anymore, yea, good luck buddy, I dont want you either.

https://quickbooks.intuit.com/uk/blog/client-termination-letter-template/

[Al007]

Is it worth telling them you can only file an extension since it is too late to prepare their return.  And also let them know they may owe taxes and interest and penalties, since an extension is only an extension of time.

[dkh]

I have decided to limit the number of returns I will prepare. This is notification I will not be preparing your individual income tax return for tax year 2022.

[jeffmcpa2010]

Give them a copy of the extension form and the address to mail it to. If you file it and they are underpaid and have penalties, they may try to blame you. That is harder if they complete the form themselves.

Also - It is easier(and potentially safer) to fire clients in December than Filing day. They could make an argument that this has been your arrangement for years, and they will be penalized as they can't find another preparer on the last day.

[PATAX]

As soon as they stop in just tell them they should not bother taking off their hat and coat.... hopefully the pain in the @$$&$ will get the picture , but some of them may be dense... just joking or am I?

[BobKamman]

@jeffmcpa2010  " It is easier(and potentially safer) to fire clients in December than Filing day."

Exactly.

And how can the practitioner community get rid of those who cater to this type?  It gives the rest of us a bad reputation when word gets around that some allow themselves to be abused.  

[JRC]

Charge a hardship and abuse fee for your service, enough to send them on their way.

[LJHCPA]

I believe you should have an up-front established policy that is clearly spelled out in your engagement letter that any client who submits their data after March 31st (or whatever date you choose) will not be guaranteed a timely filing without an extension. Further remind them an extension is only extended time to FILE not to PAY. If they don't pay SOMETHING with their extension request the extension is not worth anything. You might also want to add a clause to the effect of "....additional fees may (or WILL) apply..."

In addition to the policy in the engagement letter you should have a posted notice in your lobby regarding payment terms in general and highlighting the  extension policy. Do not deviate from this even once, as it could expose you to litigious clients who believe the world revolves around them. (Are there really such people?)

[taxes96786]

You don't owe them an explanation. I ask yearly if client will be using my services and then I tell my clients that any docs not received by 3/15 likely will not be completed and filed by the deadline. I have fired clients with no regrets. If they act responsibly for their returns you are not the cause.

[PATAX]

@taxes96786 👍 we have the right to terminate services to anyone, period.

[IRonMaN]

There are a few options:

Send them a letter saying you realized that their return is too complicated for you.  Refer them to the tax preparer in your area that you absolutely despise.  Kinda like killing two birds with one stone.

Bill them $100,000 for the return.  When they complain, tell them you will reduce the fee down to the same amount as last year, but you won’t be able to reduce it next year.

Find a new office and move there in December.  Don’t tell the troublemakers where you moved to.  As you are leaving, put a note on the door saying you retired.

[PATAX]

Great options there Iron Man, one may want to try the following: Make it look like you are doing THEM A FAVOR by getting rid of them, I.E. by telling them something like this: "There are other CPAs with more specialized knowledge and/or experience with your unique matter/situation, and it may be better for you to go there." Just my opinion.

[dkh]

Smooth talking @PATAX .    I'm going to print that line out so I can use it on a couple of PIA clients I'm ready to be rid of.  Thanks!

[PATAX]

Thanks dkh.

[rcooley25]

Very simple solution. Simply tell them to go away.

[PATAX]

But some people may be like the coronavirus, they may never go away....

[rcooley25]

I agree regarding the virus but do to my simply charming personality when I tell some one to go away they go away and stay away.

[rcooley25]

My wife has that same problem because she has tried to get rid of me for the past 41 years.

[rcooley25]

I think you are telling the truth.

[rcooley25]

You dont need a special termintion letter. Just a sheet with their name and adress on it and use a little go to hell stamp on the form

[PATAX]

@rcooley25 👍👍👍

[Taxprohere]

Early on in my business, I once used the 'due to the complexity of your tax return' but it would grate on me ever to use that excuse again. 

Now to exorcise certain clients I may use  "I'm gradually downsizing my business and have to make the difficult decision to no longer provide tax preparation services to you.  Good luck."

[IRonMaN]

How about-

Dear PITA:

it was a very difficult tax season and a few clients made it even more difficult.   While sitting in my office today and reflecting on this tax season, your name was the first to pop in my head.  I don’t care to have another repeat of this tax season, so please just don’t ever darken my doorway again.  Just go away.  And please don’t seek out another local tax preparer.  I would feel terrible to curse my local competitors with you.  Please seek a preparer from outside the area.  Actually, finding one in another state wouldn’t be such a bad idea.  

Respectfully,

Your former tax preparer 

[rcooley25]

Very well written. Do you think we  will be over this tax season by the time next tax seson gets here?

[IRonMaN]

It's gonna be close 😀

[JRC]

LJHCPA, You have a lobby?

Jealous....