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    #1

    Incomplete Returns as deadline comes...

    I'm curious what you do with clients who haven't been able to get you the appropriate documentation for filing a return by the deadline. Do you file anyhow and then amend? I don't like putting my name to something that is not complete. Do you perhaps give what you've got to them without your name on it, clearly documenting it is not complete? I read in a previous thread where one preparer suggested filing with adequate disclosure -would you put disclosure in with the return to be filed or would that be disclosure to the client? How would you word such disclosure? I found this online perhaps it would be appropriate as a statement attached to the return

    "This return is based on incomplete records. Estimates were used to determine the amount of expenses. Should records or new information become available to the taxpayer at a later date indicating that the information included in this return is materially incorrect, the taxpayer will immediately file an amended tax return to correct this filing."

    I have to give a client some tax returns today for a bankruptcy filing but they are not complete in that I'm missing deductions for interest and mileage -I'm pretty sure the income is reported correctly, not so sure of the deductions. I have to give her something. I'm leaning towards giving her the returns without my name on them. I will bill her for assembling the information but not tax return preparation. I will clearly state the returns are not complete.

    I've got to learn to be more of a hard ball and learn to say "no"...I'm making a clients problems mine.
    Last edited by equinecpa; 10-13-2010, 09:53 AM.
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    #2
    It's getting easier

    It's getting easier for me to let the problem be theirs, not mine. Obviously, we do everything we can to get our part right, but if the client can't (or won't) provide what I need, the return won't get done.

    I have one here, brought in his stuff Oct 6, said, "We'll be on vacation tomorrow thru Oct 16. Can I sign something in advance?" Here's what I said (Are you ready, cause this is big): "No."

    Now, what I WANTED to say was: "Oh, was 9 months and 6 days not long enough for you to get it to me? Did you know that I have some other clients? Where the $%&& are you going on vacation, anyway? Yeah, well, I hope you have a great time, cause ^&*( $%^# $%^#..."
    Last edited by RitaB; 10-14-2010, 03:54 PM.
    If you loan someone $20 and never see them again, it was probably worth it.

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      #3
      It is absolutely amazing to me the number of clients who do this -- drop their stuff off, then leave town for two weeks. I have several who do this in the filing season, then go to Florida -- maybe for a month. Just had one who finally got me his information on 10/12. Just happens to be in the Dominican Republic where it takes 2 weeks to get mail -- and another 2 weeks to get it back to the states. Good thing he is getting a refund.

      Comment

        #4
        And

        [QUOTE=Burke;108192]It is absolutely amazing to me the number of clients who do this -- drop their stuff off, then leave town for two weeksQUOTE]

        AND feel good about doing that to you...

        I also have one that does it every year around the first of April. So cheery when he comes in with this big grin on his face that is about to get a nice tan while I work my white butt off. Expects me to have it ready when they get home on April 14. Well, I finally got fed up enough this year to tell him, "Have a great vacation, and I'll start on your return when you get home."
        If you loan someone $20 and never see them again, it was probably worth it.

        Comment

          #5
          OK, I have to share

          The one I just started on has a typed up page "2009 Deductions."

          The last line says, "Please add anything else you can think of."
          If you loan someone $20 and never see them again, it was probably worth it.

          Comment

            #6
            Imho

            I would not give client incomplete tax return NOR would I give her one without my name on it. For one thing the incomplete return showing too much income (without all deductions) could possibly adversely affect her bankruptcy filing? For another, what if more than one tax return is "floating" around (with her lawyer for example)? IF bankruptcy filing is improtant enough client should be able to provide you with ALL necessary info?

            Comment

              #7
              You can always add an extra $100 to their bill, and tell them that's the only thing you could think of at the time.
              "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

              Comment

                #8
                Lol

                Maybe $200. That would be a bigger savings for him. You know, I do what I can to help.
                If you loan someone $20 and never see them again, it was probably worth it.

                Comment

                  #9
                  Try this for your disorganized clients w/business.

                  This year again, several clients files ext and are disorganized. Told client, I guarantee my work if I am at fault but if I am not at fault, I reserve the right to charge. So if you are involved in an audit and NO blame on me, you most likely will pay me a fee to help you in your audit So by being so disorganized, you can:

                  Pay me now OR pay me now and pay me again when you get audited.

                  Client had no response

                  Comment

                    #10
                    Wow

                    Another one just called: "Can I bring my stuff in?"

                    Me: "Sure. I'm here."

                    He brings it in and says, "Is the deadline coming up?"

                    Ok, I owe it to myself and all of you to work on this one. Monday.
                    If you loan someone $20 and never see them again, it was probably worth it.

                    Comment

                      #11
                      Rita: You can handle this however you like, but here's my position. When they want to give me info right before a deadline that can't be extended, I tell them I can't see them until after the deadline. I prefer not to accept the info from them until after the deadline has passed if I know I can't get the return done on time.

                      I'm probably being overly cautious, but people's memories tend to get fuzzy if they're audited. If they happen to owe, I don't want the client claiming that they gave me the info before the deadline (even a day or two before), because they might try to claim that by accepting the info I accepted responsibilty to get the return complete on time. If they have a refund, it isn't a problem since there's no penalty. But we have all seen situations that appear at first blush to be refunds, until we find that 1099-B, K-1, or 1099-Misc buried in the paperwork.

                      Refusing to accept the info also impresses upon them that they will be responsible if any penalties occur. It keeps the monkey on the proper back. If they don't want to take that risk they can always seek out someone else who is hungry enough to sit up all night doing their return.
                      Last edited by JohnH; 10-13-2010, 04:34 PM.
                      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                      Comment

                        #12
                        We had a late client once, and had trouble getting all information. Explained to him we could not finish without the information. Did not file until after the deadline. He then owed taxes and interest and pentalies. He was really upset, we explained we could not finish because he had not given us the information. He then took us to small claims court (we found out he had done this before and won). Well, we went to court and we had taken good notes on what had happend explained about getting the information late. Because we had a good log on what had happened, we won.

                        The tricks people play.......

                        Well.....keep good logs on all contacts and what happens.

                        Comment

                          #13
                          Still have one client that I have been calling her 24/7...but her phone is off and that's her only number that I have currently...this lady always goes on her 'trips' when a tax return is due. What can you do about it? Nothing I guess.

                          Comment

                            #14
                            Another situation in which it's great to have email addresses. People generally check email even when on trips or cruises, plus you have good reliable documentation that you made every attempt to contact them. If there's a large balance due with associated penalties and interest, then this can be very handy info if the client tries to shift blame to you.
                            Last edited by JohnH; 10-14-2010, 08:59 AM.
                            "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                            Comment

                              #15
                              I'm NOT a miracle worker!

                              Originally posted by RitaB View Post
                              ...Now, what I WANTED to say was: "Oh, was 9 months and 6 days not long enough for you to get it to me? Did you know that I have some other clients? Where the $%&& are you going on vacation, anyway? Yeah, will I hope you have a great time, cause ^&*( $%^# $%^#..."
                              I like this very practical approach!!

                              I prefer to make it VERY clear to clients that a deadline is looming, and I cannot file a return until certain information is received and a reasonable amount of time to complete the return with all facts available is allowed. When/if this situation occurs, I create a significant paper trail, including a written letter, informing the client of my position. In April scenarios, I will file an extension in a NY minute!

                              As for the submitting a return with statements such as "this has been prepared with incomplete records" and "estimates were used" (how do you even do that with efile??) that would be way down my list of options. Aside from likely begging for a review by the IRS, I would have some problems submitting a return, over my signature, with apparent shortcomings in the first place. It is the client's problem....and there is no reason for me to get in the crossfire for any issues raised due to the slowness of the client.

                              This mantra can be of considerable merit also: "Lack of preparation on your part does not constitute an emergency on my part."

                              FE

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