Which Business Tax Clients to (Maybe) Avoid

One thing I have found from my experience (and the experience of other tax pros I’ve met along the way) is this:

If we simply avoid the 20% of business tax clients who are going to cause us the most aggravation, we will decrease the amount of aggravation we experience by at least 80%, and usually it’s closer to a 95% aggravation avoidance rate.

We should be clear that this aggravation is not always caused by clients. This aggravation can also be caused by us not knowing how to do that particular type of work with efficiency and confidence Or maybe that’s just me??? 🙂

  • Do you have a “don’t do list” for business tax clients?
  • Every tax pro I’ve ever met who has enjoyed long-term success in working with business tax clients most definitely has such a list.

Possible “Don’t Do List” for Business Tax Preparation Clients

Here, for your consideration, are a few categories of business tax clients that a tax pro might want to avoid, depending on that particular tax pro’s situation, goals, capabilities, capacity, how close we are to a deadline, etc.

  • Clients with revenues or assets over $250,000 (creates need for balance sheet on tax return–most common pain point for tax pros who aren’t yet fully confident on more advanced business tax prep).
  • Clients who have no bookkeeping.
  • Client whose bookkeeping is obviously and/or glaringly wrong.
  • Clients with international tax considerations.
  • Clients who have inventory as part of their business operations.
  • Clients who use any accounting method other than cash basis (accrual, “hybrid,” etc.)
  • Corporations or partnerships with more than two shareholders / partners (greatly increases possibility that somebody is gonna have an issue with something and I’m going to get multiple emails asking me to “jump on a call” with someone other than my actual client).
  • Clients who say “my old tax person was an idiot” or anything similar to that.
  • Clients who have no commitment to actually paying their taxes.
  • Clients who ask for discounts.

Your “Don’t Do List” Could Be My “Ideal Client Wish List,” and/or Vice Versa

Please understand that I am NOT recommending that you avoid those categories of clients, nor am I “judging you” if you do work with any of the client groups named above.

Some of those categories, in fact, could be client groups you would want to focus on serving–because many other tax pros won’t take them on.

My point, though, learned from 20+ years of painful experience, is simply this:

  • If you don’t have a “don’t do list” for business tax clients, I highly recommend you get one PRONTO!
  • If you do have such a list and haven’t updated it in a while, maybe it’s time for a refresh.

I also highly recommend, if these kinds of topics are a priority for you in your tax career, that you join our movement of tax pros who are 100% committed to becoming and staying elite at business tax preparation and consulting:

Click here to join the Business Tax Verified Training Program today and get real help with your real business tax clients, right now.

We built the business tax training, tools, and support Program we needed for ourselves when we ourselves were struggling to serve more advanced business tax clients such as C corporations, S corporations, and multi-member LLC’s.

The price of the Program is less than the average fee for one good business tax client.  

If you have any questions about whether or not the Business Tax Verified Training Program would help you this tax season (and beyond), please click here to contact our dedicated support team and we will assist you directly.

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Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.