IRS needs proof that ext was filed, what?

[JohnH]

Yes, really.
Doesn't bother me a bit.

It's entirely consistent with my aversion to being responsible for FILING of the return or extension. When there's tax due and the possibility of large penalties, I strongly advise them to use Certified Mail with Return Receipt when they complete their filing. I even provide the envelopes already stickered. If they choose not to follow my advice and a problem surfaces, we have clear lines of responsibilty. Never any question about who's at fault if something goes wrong.

[veritas]

Certified mail

Really?

You like to send your clients to the post office? Or you go there?

Pay money to go there? Really?

[JohnH]

Only one person's experience, but over the years I've seen probably a dozen or so instances in which a client received a notice that the return or extension was late filed in situations in which we had a certified mail sticker with return receipt to show IRS. In every instance they accepted that as proof and removed the penalties without question. Even had one last year with a corp audit and several thousand dollars in penalties at stake. Once we produced the certified mail sticker and return receipt card, the penalties were immediately removed. Nobody ever questioned what was or was not in the envelope. I do write on the sticker and also on the Return Receipt Card a notation about what's inside, and I photocopy both before mailing.

[gkaiseril]

On the serious side, I have found out that a registered letter to IRS, is ONLY proof that you mailed an envelope, nothing more. Only way of proof would be e-filing.

You can track a registered letter online by the registration number. The only problem with using registered letters is that each mail handler has to sign for the registered letter at each step of the processing. This delays delivery of the letter and if delivering a time sensitive form, this delay can cause the form or document to be received after the due date. And for a 1040 mailed on April 15th as a registered letter, this form will be considered as not received on time by the IRS because of the handling delay. But other forms of verification of the mailing or receipt could be used.

The IRS has always accepted a 'proof of mailing' receipt' for verification that a form has been sent to them.

A certified letter with a return receipt will not delay delivery of the letter to the IRS. And if you make 2 copies of the letter with the certified sticker and keep one copy and mail the other copy to the IRS, the IRS will have a harder time denying they never received the letter, especially if they have to produce their copy of the letter.

And in the last couple of years you could use a private delivery service like DHL, FedEx, UPS, etc and they have electronic tracking and delivery confirmation.

[PIGLEE]

I use to answer this to wierd questions "Where did you hear that, at the bar, from the barber, for from your brother? Once I got an answer, "How did you know?",

On the serious side, I have found out that a registered letter to IRS, is ONLY proof that you mailed an envelope, nothing more. Only way of proof would be e-filing.

[DTS]

Two careers

It was tough juggling two careers at the same time. I was a hairdresser for 37 years and I always tried to dispense the best tax advice and juiciest gossip, whenever possible.

You can have it all!

[Lion]

Not unless

Not unless I'll cut their hair, too! Otherwise, they see the hair stylist 12 times/year and will stay there. Her clients have no idea she needs a PTIN.

[gkaiseril]

thing happened to one of my clients - my question is WTF is going on at IRS - they have SAME info I have!

But maybe they do not know how to read it.

Just like the quality of the document matching program.

[gkaiseril]

Now hold on a minute. Every time my clients go to their hairstylist, they call and tell me something new about taxes that I wasn't aware of. Their services are at least as good as mine, maybe better. At least that's what I keep hearing.

The gossip is probably a lot better. And how much of that gossip comes from the hairstylist doing taxes?

But with PTIN registration and testing, the hairstylist may lose this valuable source of gossip material.

[luke]

same

thing happened to one of my clients - my question is WTF is going on at IRS - they have SAME info I have!

[JohnH]

Now hold on a minute. Every time my clients go to their hairstylist, they call and tell me something new about taxes that I wasn't aware of. Their services are at least as good as mine, maybe better. At least that's what I keep hearing.

[gkaiseril]

If you use snail mail, then the client should get a proof of mailing and attach it to the client's printed copy of the extension.

If e-filed, as noted, you will have a confirmation of acceptance by the IRS and the log could even show what type of form was filed.

The e-File acceptance and reject logs let you know the exact status of your client returns. Yes the is some additional work in tracking this data, but if there is a problem with the client's return, you will know about it and can address it before the client gets an unreadable notice from the IRS in 16 weeks. Think of this as providing better client service and a reason your service fee is cost justified by a better level of service provided by the local currency exchange or hair dresser down the street.

[veritas]

Nope

This tells me electronic filing of extensions is the only way to go.

[AZ-Tax]

Client recieves an IRS letter 2 weeks after I e-filed his tax return charging my clients with a penality for late filing due to no ext was on file. So I had to email my client their e-file status history and there it was IRS accepted 1st ext on 4-15-10. Then my client called the IRS and all the IRS needed was the date the ext was accepted, not a copy nor the DCN # relating to ext e-file. First time that has ever happen to any of my clients. Any of your clients ever had this experience?