Resistance to VCP - what to do?

We are taking on a new client that adopted an individually designed plan in 2009.  It was never updated beyond that date.  Furthermore, the existing document is questionable, and there is no determination letter.

The client is not interested in going through VCP because the new fee structure along with the fees we would be charging to correct are too costly.

I am not comfortable taking on a client whose document is out of compliance.  At the very least, I feel we should go through all of the steps you would go through if you were going to submit the document through VCP.  Then leave it up to them to file the submission.  

What is our culpability if they fail to submit?  What have others done in this situation?

Thanks!

20 minutes ago, Towanda said:

…  the existing document is questionable, and there is no determination letter.

First, verify if the plan even exists.  

We have the document.  When I say it's questionable, I mean I have never seen a document with some of the language I see in this one.  

Might it require a DL within X time, otherwise the plan is deemed to be void?

There's another issue . . . It may very well be that we would have to restate their existing document onto a pre-approved document for that era.  I would have to contact the IRS about that.

We're not talking about a small problem here.  

Whatever you do, don't make the client's problem, your problem. Help them solve their problem and lay out the solutions. Big problems come with big price tags. It's not your fault the client didn't do what they should have done over the years.

You're right . . . I think we either get them to commit to bringing their document into compliance or send them on their way.

3 hours ago, Bill Presson said:

Whatever you do, don't make the client's problem, your problem. Help them solve their problem and lay out the solutions. Big problems come with big price tags. It's not your fault the client didn't do what they should have done over the years.

This is an easy one and Bill has given you the track to run on.  You tell them what to do; that's why they came to you.  If they don't take your advice, they are NOT your client and you say thank, but no thanks. It is just that simple.

Thank you!

Yes to what Larry and Bill say. 

Big difference between an employer who has problems but wants to comply and one with problems and doesn't want to comply.  The latter don't make good clients, they eventually turn into really bad former clients who badmouth you, and they can also turn into expensive plaintiffs it if all goes sideways while on your watch.