Practice with Purpose

When Tax Resolution Agencies Terminate Services

By on Feb 1, 2016 in Tax Resolution |

It’s always nice to get a tax refund at the end of the year. Many families rely on the annual stipend to pay for clothes, education, or a summer vacation. The average tax refund is more than $2,500 and that can go a long way when you are living from paycheck to paycheck.

If you want to get the maximum refund on this year’s tax return, your best bet is to hire a tax professional. Whether you opt for a tax attorney or a business accountant, having a second set of eyes going over the returns is a smart way to insure that you are filing everything correctly.

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Unfortunately, tax attorneys and accountants routinely terminate services with their clients for a number of reasons. This can be devastating if you are in the middle of tax preparation and you suddenly have to finish the task on your own. To avoid this situation, you need to know your tax professional’s terms of service and be sure you follow all rules and procedures correctly. Here is a look at a few reasons why a tax attorney or IRS accountant might choose to terminate their services to you.

A tax accountant can terminate their contract with you if you do not have any respect for the tax laws that they need to follow.  That means that if you are continually asking them to break the rules, then they can stop working with you.  If you are not letting them do their job within the limits of the law they do not have to work with you.

There are a lot of times when accountants will stop the work that they have started because the client did not pay for services that were completed previously.  There are often times when accountants will set up a payment plan with the client.  If this is not followed through with, and the accountant is not paid like they should be, they can stop providing the service without further explanation.

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No matter why the services have ended, it is really important to understand that the tax professional will keep all of the records that have already been gathered.  When the letter of termination is created it will specify what the next accountant would need to do in order to obtain those records.  There may be time lines on this information so it is always very important to read this section very carefully.

lsIn the end, if you are willing to work with your tax agency in a respectful manner, respect their ability to do their job, and pay them as you originally agreed, you will have a successful relationship with them.  They can certainly help you with the IRS and it is always best to have them on your side.  Remember, they are there to serve you but they do have laws that they must comply with.

When you are interviewing tax resolution agencies to file your returns this year, make sure you ask them about termination clauses just to be sure you are always in compliance.