Didn't file taxes for 11 years. (mortgage, CPA, organization, stock)

[mortimer]

(1) What would you charge for this if you were not currently employed, but not inclined to do the following?:
(2) If you would absolutely not be interested or capable, what do you think the market value would be?:
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I know someone who wants me to come to their home in CA and prepare tax returns
for him for the tax years 2000 thru 2011 - state and federal.

They have unopened mail from 2000 on sitting in boxes with a bit - but not much
organization. We are talking multiple file folder-sized boxes to go through.

The state has been garnishing his wages for the past 7 years at a rate of $100/month.

The feds now have put a lien on his house. I have been amazed that someone
has not already come and put yellow tape around his whole property by now.

He makes well over $100k/year and could have solved this problem long ago.
He says that he files with 0 exemptions every year and has substantial property tax and
mortgage interest expenses so I assume that he was entitled to a refund each and every year.
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I am inclined to ask for $3,000 for one week or $5,000 for two weeks.
I am a CPA with an inactive certificate. I have not done taxes professionally since 1988.
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I have asked for W-2's and mortgage interest and property tax statements for all the
years to be copied and scanned/emailed to me so I can get an overview before I decide.

- he is balking at that idea.

I don't want to go there for however long it takes and want to do it from here.

- he doesn't want to trust UPS or whatever to ship the boxes to me.

[AndyDakota]

For starters my prayers are with you and the client. This client of yours really needs to meet you half way. If he wants to come clean and file then he has to be compliant.

[chet everett]

Guy sounds certifiable. As in "wrap your head in aluminum foil so THEY won't read your thoughts with THEIR CELL PHONE TOWERS..."

Without knowing more (like did you work for this guy before or something..) why would entertain the idea of dealing with this?

[mortimer]

Originally Posted by AndyDakota

For starters my prayers are with you and the client. This client of yours really needs to meet you half way. If he wants to come clean and file then he has to be compliant.

For starters? How about my basic question? What's it worth?

It's not really a "client." I wish I had a bunch of people in this situation as "clients."
This is a person who is asking me to help - knowing that I'm capable of helping, but
not willing to engage someone who is actively in the business of doing this regularly.

My guess is that I'm going to be lowballed and I'm trying to get a feel for how much.

Originally Posted by chet everett

Guy sounds certifiable. As in "wrap your head in aluminum foil so THEY won't read your thoughts with THEIR CELL PHONE TOWERS..."

Stop it! I'm not going to be able to deal with him without laughing now. You bumpkin.

Originally Posted by chet everett

Without knowing more (like did you work for this guy before or something..) why would entertain the idea of dealing with this?

.... uh ... why do we ever "entertain?" ... A relative.

I continue to look for some hard-money estimates. What do you think the market value would be for this?
I suppose I could just call some CPAs in town, but wadda' pain.

[Grandpa Pipes]

Originally Posted by mortimer

(1) What would you charge for this if you were not currently employed, but not inclined to do the following?:
(2) If you would absolutely not be interested or capable, what do you think the market value would be?:
-------------------------------------------------------------------------------------
I know someone who wants me to come to their home in CA and prepare tax returns
for him for the tax years 2000 thru 2011 - state and federal.

They have unopened mail from 2000 on sitting in boxes with a bit - but not much
organization. We are talking multiple file folder-sized boxes to go through.

The state has been garnishing his wages for the past 7 years at a rate of $100/month.

The feds now have put a lien on his house. I have been amazed that someone
has not already come and put yellow tape around his whole property by now.

He makes well over $100k/year and could have solved this problem long ago.
He says that he files with 0 exemptions every year and has substantial property tax and
mortgage interest expenses so I assume that he was entitled to a refund each and every year.
-------------------------------------------------------------------------------------
I am inclined to ask for $3,000 for one week or $5,000 for two weeks.
I am a CPA with an inactive certificate. I have not done taxes professionally since 1988.
-------------------------------------------------------------------------------------
I have asked for W-2's and mortgage interest and property tax statements for all the
years to be copied and scanned/emailed to me so I can get an overview before I decide.

- he is balking at that idea.

I don't want to go there for however long it takes and want to do it from here.

- he doesn't want to trust UPS or whatever to ship the boxes to me.

Stay the hell away from this guy since by doing work for him you buy a fast ticket to jail even if you did a good honest job. The gov't is out for blood with this scofflaw to make an example of him!! Don't be connected to him in any way shape or form.

[Hollytree]

There's no way you could do this remotely. Only way would be to go there and sift through all his papers. Lord knows what you'd find.

If you would consent to go there, ask for all travel and hotel expenses as well as weekly expenses. (Your quote sounds very reasonable if not low). If you've got a strong stomach you could make a good wage off of this debacle. Don't forget to get a substantial retainer up front!

You must be a friend or acquaintance for him to have contacted you rather than someone in CA???

I don't see how you would encounter any liability if you do your job honestly using his own records.

[treasurekidd]

I agree, go for the $5K, with at least the $3K UP FRONT.

[NJBOSCH]

Do you have software that can handle all of those prior years? If not you are looking at spending a chunk of that retainer to purchase software that can handle this job.

[mortimer]

Originally Posted by Grandpa Pipes

Stay the hell away from this guy since by doing work for him you buy a fast ticket to jail even if you did a good honest job.

You are right. I have no intention of actually filling out any forms. I'll just print out an Excel sheet and have him do it.
With his procrastinative personality, he might never get around to actually filling out that stuff. ( I just made up that word, BTW. )

Originally Posted by Hollytree

There's no way you could do this remotely.

Maybe, maybe not. In any case, I need a view from 30,000 ft first.

I need W-2's, Mortgage statements, and property tax statements for those 11 years.
From that, I can determine if he actually would have gotten a refund, but forfeited them
by not filing the returns. If it turns out that he didn't have 0 exemptions all these years,
then it's a very different story. Not filing is one thing. Not paying is another.

My 30,000 ft view will be an excel spreadsheet with all the important lines and a formula to calculate the tax.
Each year 2000, 2001, ... will be in a separate column. I want to see refunds every year, or at least refunds
exceeding tax owed. I can only imagine the interest on the penalties just from the non-filing of the tax forms.

It's going to be ugly.

I think remotely will be easier than I originally thought. I really couldn't care less about his
possible deductions. When he originally called me, he rat-holed the discussion around entering
checks into Quicken so that he could take advantage of deductions. Again, who cares?
As long as his income is accounted for, I'll be happy.

Unfortunately, he sold some company stock and possibly cashed in some 401k money.
That's going to be important and I may have to travel to unravel that stuff.

Originally Posted by Hollytree

You must be a friend or acquaintance for him to have contacted you rather than someone in CA???

I must be a nephew. If he balks at payment, and I can see that my guess was
pretty good, he can find out what it really costs to get bailed out in the real world.

Originally Posted by NJBOSCH

Do you have software that can handle all of those prior years?

Nope. It's a good point. I suppose I can buy "back years" of turbo tax, but maybe not.

In any case, I'm only going to be looking at the 1040, Schedule A and Schedule D ( once or twice ).
Doing it by hand won't be much of an issue.

Originally Posted by NJBOSCH

If not you are looking at spending a chunk of that retainer to purchase software that can handle this job.

No way. He's going to pay for every cent of expense and I'm going to have money in the bank before I depart.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Ever see those shows on hoarders on the TLC or History Channel or whatever?

Picture a king-sized bed ( he's married ) with file folder boxes stacked against the bed full of unopened mail.
It was that way - way way back in the 1990's. I havent' been there for quite some time. .... I shudder ...

[Jaggy001]

I would charge $150k an hour plus expenses, 75% to be paid up front and the rest upon completion. You make it clear that you will withhold all reports/working papers, etc. until you have been paid in full. Also, make him sign an engagement letter up front. You should be able to find a model online. Be very very clear in the EL as to what you will deliver and what his responsibilities are.