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Post by larousse on Jan 24, 2011 12:23:06 GMT -5
What does one do with a taxpayer who hasn't filed since 1995 and has next to no records? Since TP was self-employed and owned rental properties, the transcript from the IRS does not provide enough data and only goes back to 1999. TP has vague recollections like "I guess my business netted $X each year, and I never made ANY money from my rentals".
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Post by nancy65 on Jan 24, 2011 14:04:44 GMT -5
Tell him "Goodbye. It was nice meeting you, but I can't help you."
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bookcrazychick
Initiate Member
Joined: Jan 7, 2011 22:48:42 GMT -5
Posts: 77
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Post by bookcrazychick on Jan 24, 2011 14:20:58 GMT -5
I wouldn't touch that with a ten foot pole  |
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Jan 25, 2011 19:20:45 GMT -5
1st.... get a BIG retainer up front....
2nd.... have the proposed client get copies of bank statements, etc....
3rd.... if he won't get records and won't give a big retainer... RUN.....
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Deleted
Joined: Apr 23, 2024 17:50:01 GMT -5
Posts: 0
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Post by Deleted on Jan 27, 2011 0:31:28 GMT -5
What does one do with a taxpayer who hasn't filed since 1995 and has next to no records? Since TP was self-employed and owned rental properties, the transcript from the IRS does not provide enough data and only goes back to 1999. TP has vague recollections like "I guess my business netted $X each year, and I never made ANY money from my rentals". Tell him Bubba is looking forward to MEATING him!  |
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Post by activeonlooker on Feb 2, 2011 23:33:26 GMT -5
LOL, chick
I agree with MWCPA and add: get a signed engagement letter stating that fees will be time spent - not a specific amount. Go back 6 years - if no info on rentals, no basis, etc. Would be a nice project for after tax season.
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taxref
Junior Member
Joined: Dec 31, 2010 11:09:13 GMT -5
Posts: 220
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Post by taxref on Feb 6, 2011 11:38:31 GMT -5
I would take a somewhat diferent approach than the ones recommended above.
I would first agree that a retainer is a good idea. I would then produce a form of some sort with income and expense lines similar to both Sch. C and Sch. E. I would then have him give me estimates of his numbers for each year, and then sign and date the form.
I would feel safe preparing his returns from those estimates. Needless to say, the estimated amounts forms would stay in his file.
I have found, though, that in many cases these kind of clients don't want to give usable information. Rather than numbers you will often get income of "not much" and expenses of "alot." If you cannot convince the client one needs numbers to complete tax returns, you at least have the retainer for your time invested.
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