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Client's check bounced after returns were accepted by IRS, will not repay. Repercussions as 'Paid Preparer' with IRS? Can I send letter to throw out returns?

office1
Level 1
 
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abctax55
Level 15

You did prepare the return...so nope, ya' can't remove your name.  The IRS doesn't care that the check bounced.

"Paid preparer" means you are a professional preparer in general, not that a specific client has/has not paid you.

You "can" discuss this with your client & threaten, but it's an empty threat.

Bounced checks are illegal in most jurisdictions; perhaps a call to the local authorities?

In my small community, I call the bank the check was drawn on to see if/when funds are available & run down to the bank & cash it :smile:

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

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6 Comments 6
abctax55
Level 15

You did prepare the return...so nope, ya' can't remove your name.  The IRS doesn't care that the check bounced.

"Paid preparer" means you are a professional preparer in general, not that a specific client has/has not paid you.

You "can" discuss this with your client & threaten, but it's an empty threat.

Bounced checks are illegal in most jurisdictions; perhaps a call to the local authorities?

In my small community, I call the bank the check was drawn on to see if/when funds are available & run down to the bank & cash it :smile:

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
George4Tacks
Level 15
Taking the check to the bank in a large community also works. I only wish we could see the face of the client when they find that bank cleared the check after it bounced. I believe this is much better than taking the  time for small claims court. :+1::+1:

Here's wishing you many Happy Returns
IRonMaN
Level 15

The returns are filed, you can't "throw out anything".  Next time ask for cash ----------------- In God we trust ------------- all others pay cash.


Slava Ukraini!
office1
Level 1
Hindsight is always 20/20. Lots of things in the 'Next time' category. Just wondering about any repercussions we may have with the situation as it stands. Thanks!
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IRonMaN
Level 15

Not paying doesn't have any repercussions, but your name is still on the return.  But unless you did something flakey on the client's behalf, there isn't anything to worry about.


Slava Ukraini!
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garman22
Level 13
Level 13

Could you contact your client and tell them that you need to contact IRS and have yourself removed as paid preparer and this could in turn open their return up for scrutiny? 

Purely as a scare tactic to get paid. 

But there should be no repurcussions as most have stated.