You’ll have to admit that sometimes your clients are just not interested in tax credits. They think that obtaining credits will require too many resources, are not worth the $$ benefits, or may be too risky. Not digging into the details is often the path of least resistance — it’s so easy to give up on tax credits.
Your clients complain about paying taxes, and they certainly let you know it loud and clear, yet they often don’t want to investigate
if they can benefit from the available credits and incentives.
There are two sides of the tax credit coin — costs and benefits:
- Costs -It may take your time (maybe non-billable?) and your client’s time to uncover the potential benefits.
- Benefits – If you take that time to find out, your clients will save $$ in taxes, you will be viewed as a better trusted advisor, and your client’s relationship with you (“stickiness”) will be strengthened.
But before you bring up tax credit ideas to your clients, you may need to check your reliable resources. These resources may be others in your CPA firm, independent tax credit providers, your firm’s alliance/affiliated network, tax research databases (such as Thompson Reuters), or other sources of expertise. Try to leverage these resources to develop an estimate of $$ benefits and costs, and then review with your client.
Of course, make sure your clients can benefit from tax credits before you start the process! Having reliable resources for each tax credit opportunity will help. And then it won’t be so easy to give up on tax credits — for you or your clients!