🚨 Service Theft in Tax Business: How It Happens (Clients + Independent Contractors)

“Service theft” is when someone gets the work but you don’t get paid, or they use your systems/brand to profit off you. It’s more common in tax than people want to admit, especially during peak season. Protect your time and your name. 💼🔒

1) How tax clients steal services (real-life ways)

✅ The “Free Review” Trap

They send docs and want you to “just take a quick look” at:

- refund estimates

- credits

- filing status

- deductions

Then they disappear and file elsewhere with your guidance.

✅ The “Draft Me Something” Play

They ask for a “draft return” or “estimate” to:

- shop your numbers

- compare fees

- get a bank product elsewhere

✅ The “File It But I’ll Pay Later” Lie

They rush you to submit, then:

- stop responding

- claim confusion

- suddenly “don’t have it”

✅ The “Chargeback Queen/King”

They pay by card, get service, then file a chargeback claiming it was “unauthorized” or “not delivered.”

2) How independent contractors steal services

✅ Taking your leads and poaching clients

They use your pipeline to build their own list:

- DM your prospects

- collect direct payments

- move clients off-platform

✅ Filing under your brand but skipping your process

They rush returns, ignore intake, and create:

- rejections

- compliance gaps

- messy client experience

And guess who looks bad? You.

✅ Keeping the money, leaving you the liability

They collect payment directly, but the business:

- handles the complaints

- fixes rejects

- absorbs reputational damage

✅ Using your tools without permission

They use your templates, scripts, worksheets, pricing structure, or training… then repurpose it as “their program.”

3) Red flags you should never ignore 🚩

- “I just need an estimate first”

- “Can you tell me what I’ll get back before I pay?”

- “Send the forms, I’ll sign later”

- Contractor won’t document, upload, or follow checklist

- Contractor always wants access but avoids accountability

4) How you protect yourself (simple + effective)

Client Protection

✅ Paid consults only

✅ No numbers without payment or engagement letter

✅ Deposit before document review

✅ Clear scope: what’s included + what’s not

✅ Receipts + signed authorization before e-file

Contractor Protection

✅ Written agreement + non-solicit + confidentiality

✅ No access without role-based permissions

✅ Mandatory documentation (notes + uploads)

✅ Payment flow controlled by the business

✅ Quality control: random audits + rejection tracking

📌 Bottom line

Service theft isn’t always loud. Sometimes it looks like “a client asking questions” or “a contractor being confident.”

But if someone benefits from your work without respecting your process, that’s not business. That’s theft with a smile 😮‍💨🔒

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