EIC-Earned Income Credit

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Comments (4)

EA in New York, New York

42 months ago

Don't do it! There's a discussion going on in another forum right not about these types of clients. This is EIC fraud, no doubt about it. If he told you he had expenses and then asked you to remove then, tell him to go somewhere else. The problems he will cause you later are not worth the fee he would pay you. I had someone call me recently with a similar situation, asking me if I would manipulate their business income/expenses to maximize their EIC. No way.

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EA in New York, New York

42 months ago

I tell new clients that they can have a free initial consultation. So they can meet with me and discuss their situation. They are free to ask questions and I tell them all about myself, my education, experience, my practice, etc. At that point they can decide to go somewhere else or give me their documents to prepare the return. Once I start the return they are expected to pay for it, and they sign an engagement letter before I start the return agreeing to this. However they do not pay untilt he return is done.

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BCSG92868 in Orange, California

42 months ago

EA in New York, New York said: I tell new clients that they can have a free initial consultation. So they can meet with me and discuss their situation. They are free to ask questions and I tell them all about myself, my education, experience, my practice, etc. At that point they can decide to go somewhere else or give me their documents to prepare the return. Once I start the return they are expected to pay for it, and they sign an engagement letter before I start the return agreeing to this. However they do not pay untilt he return is done.

Hi again. My demographic NEVER has $$$ to pay before or after I complete their tax return. All my clients opt for E-collect and have my fees withheld from their tax refund. I rarely get a client who owes money, so no one ever has to "worry" about paying me up front when the return is done.

However, I really like the sound of the engagement letter. Could you please send me a sample of what you use to give me an idea on how to word such a letter? I would really appreciate it. My email address is info@businessconsultingservicesgroup.com.

Thank you so much!!
-Theresa

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SWOhioTaxPro in Dayton, Ohio

34 months ago

Theresa,

Yes I've heard about this from other preparers all the time. Clients like that are asking for trouble because they are playing with 2 of the big 2 audit indicators, EIC and Schedule C! They have more like a 75% chance at being audited, especially this year... Beware!

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