[codegeek]

If you issued a full refund, you are not obligated to do anything more for them. You already accepted responsibility by issuing a full refund even though the IRS delays are unprecedented and your client needs to understand that. I would say "We are happy to continue the work but we need to re-establish formal relationship again through a new contract/payment in order to ensure we are able to provide quality service to you".

If they don't like it, you can tell them to go somewhere else politely unless you are at their mercy and begging for their business. A client that takes a full refund AND then still expects free work is not a client you want to work for. They will continue to make your life worse.

[cod3boy]

Thanks for the input! I am trying to see how we can solve this. I offered a $200 discount (our total price was $599) and they were still not ready to accept.