Our story begins with a self-employed client who has trusted VIPTAX with their tax filings for four consecutive years: 2020, 2021, 2022, and 2023. As a diligent and growing business owner, their gross revenue reflected a significant upward trajectory each year. From a modest $39K in 2020, they reached $58K in 2021, $85K in 2022, and an impressive $145K in 2023. This growth mirrored the evolving complexities of their tax filings and the corresponding services we provided.
Implementing Transparency: A New Procedure
In 2022, recognizing the increasing intricacies of tax preparation, especially for self-employed clients, we established a new procedure. Our professional tax preparers began saving and printing a summary of all forms worked on each tax return. This summary detailed the quantity of forms and the suggested service value, excluding any accounting or financial reports needed. This step aimed to enhance transparency and address any client queries regarding our charges. Additionally, it provided a clear outline of potential future charges, with a slight annual increase of $10 to $15, ensuring clients were well-informed and prepared.
Transitioning to Digital Communication
Embracing the digital era, we invested significantly over six years to facilitate online services. From email communication and cloud-based storage to electronic signatures and social media platforms like WhatsApp, our goal was to cater to clients who preferred remote assistance. This transition saw a majority of our tech-savvy clients opting for remote services, minimizing physical office visits for tax preparation, business openings, and resolving tax issues.
Facing Economic Realities: The In-Person Tax Filing Assistance Fee
November 2023 brought a substantial increase in our office lease, compelling us to implement a financial strategy during the 2024 tax season. We introduced a $75 In-Person Tax Filing Assistance Fee for clients opting for a 90-minute in-office appointment instead of a 60-minute remote session. This fee helped offset the increased operational and overhead costs. Importantly, we waived this fee for seniors, clients uncomfortable with electronic communication, and those without access to smartphones or social media.
The Incident: A Challenging Tax Season Encounter
The 2024 tax season was progressing smoothly until an incident involving an ex-client disrupted the harmony. This client, who had opted for remote services, was assisted by the same tax professional for four years. After the taxes were prepared and agreed upon, the fee, including our tax protection plan, totaled $378. The client agreed to this amount, planning to pay upon signing the e-file forms and receiving a hard copy for financial purposes.
On a busy Saturday in April, the client arrived at our office to finalize the process. At the front desk, upon seeing the invoice, the client loudly proclaimed, “This increase is an absurdity!” This outburst created discomfort for our front desk employee and necessitated the intervention of our general manager (GM).
The GM attempted to calm the situation by explaining the increase using the printed summary. However, the client’s agitation only grew louder, disrupting the front desk area where another client was being assisted. Amidst the escalating tension and another client waiting for their appointment, the GM posed a straightforward question: “Do you want to pay the $378 given or the right price of $432?” The client, in a huff, replied, “I will pay the $422.”
The GM then updated the invoice to $432 but accepted $422 in cash from the client’s son, applying a $10 discount to conclude the matter and restore peace.
The Aftermath: Navigating Negative Reviews
Following this encounter, the ex-client took to the internet, posting a negative review that omitted key facts and distorted the narrative. Despite email exchanges attempting to clarify the situation, the review remained a blemish on our otherwise positive reputation.
Reflection and Lessons Learned
This incident highlights the challenges tax professionals face, particularly during the intense month of April. While striving for client satisfaction and transparency, we sometimes encounter scenarios that test our patience and professionalism. It serves as a reminder that despite our best efforts, misunderstandings can occur, and not every client will be satisfied.
At VIPTAX, we remain committed to improving our services, learning from each experience, and ensuring that our clients receive the best possible assistance, whether in-person or remotely. The journey continues, with each tax season bringing new lessons and opportunities for growth.
