As a small business owner, what recourse do I have to collect for non-paymentof services rendered?

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As a small business owner, what recourse do I have to collect for non-paymentof services rendered?

Income tax preparation services not paid. Verbal agreement for payment once processed and refund received by client. Return processed but client a no show.

Asked on July 3, 2011 under Bankruptcy Law, North Carolina

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Depending on the amount of services (i.e., value of services rendered), your agreement should have been in writing. Since it was not in writing, performance could be considered a substitute for the actual written agreement. In civil court, you can sue your client for monies. Further, contact the IRS and see if there are provisions for tax preparers to obtain a lien on future returns. Criminally, theft of services is usually considered a crime in most states. At this point, you may consider suing in court (small claims if your fee was less than the cap in small claims).


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