Just to be clear

[luke]

I for one

will be printing out notice from IRS (IR-2010-126) and posting it on the bulletin board (or maybe handing out to clients) so that they will be able to SEE for themselves who is AT FAULT!

[Nashville]

Our Fault

Our clients/customers will not have a clue. This is important information from the IRS but it is not cannon fodder for the six-o-clock news. Even if they broadcast it no one would listen.

They won't realize the problem is with the IRS, and going a step further, even the IRS is not to blame for the 11th-hour theatrics of Congress.

The biggest target for this particular problem will be the early filers, or in general, those who have large refunds and want their money back pronto. One possible alternative is to process without Sch. A to get refund, and then amend with Sch. A later on a 1040X (paper return) and get more money back later. From my experience, I believe this to be a poor alternative, but some of the early crowd will just hold their breath and die on the spot if they don't get their money back early.

[BP.]

Looks like TT, for one, will be stockpiling finished returns until filing is approved.

http://www.walletpop.com/2011/01/03/irs-announces-processing-delays-for-50-million-taxpayers/?icid=maing%7Cmain5%7Cdl5%7Csec1_lnk5%7C34323

[BP.]

I'm having them sign the 8879.

Does this run afoul of the "stockpiling" prohibition described in Pub 1345, or would it be considered collecting returns prior to the e-file startup date?

[Bees Knees]

Maybe I will take the appointments, enter the data, but not print the return or give the client the e-file authorization until IRS is ready to accept the returns.

I've had returns change on me in the past where the client took along time to sign the e-file authorization. After getting it back, I re-checked the results and discovered the software was updated in the meantime and changed the results.

[PIGLEE]

I agree with Bob W. I have been through this before. Believe me our Software companies will be ready long before the IRS. I will do everything I can to have everything ready to efile, as soon as we can. I will let my clients know that I can not e-file until IRS will allow it. I will also tell them if there are any changes I will contact them, and will probably have a new 8879 for them to sign, I will e-mail that new 8879 to them. This has worked fine before when we had this delay. The first clients usually don't use Schedule A anyway.

[BOB W]

Unhappy clients will be the result. What about those that owe? Too many potential problems for me.

[JohnH]

Extensions take minutes as well.

[BOB W]

I am making appointments and doing tax returns. I'm having them sign the 8879. If all goes OK I'm good to go. If not, they will have to sign another 8879.

I can't squeeze in 450 people in March. I'm a one man show and I'm not loading up April while I'm working on Payroll reports.

Recalculations take seconds, Appointments takes many minutes, or hours.

Anytime I can get the bulk of taxpayer's info in the system I am happy. How many time do you put a return on hold waiting for more info from a client?

[Bees Knees]

IRS says not even to transmit a Schedule A return until mid to late February.

The problem is, if I enter all the data into the program ahead of time and have the client sign the e-file authorization, there is a chance our software may get updated between that time and mid to late February when we can transmit the return to IRS.

I'm not sure I even want to do that because if the software company takes its time working out all possible bugs, I can't trust the return is going to be accurate if I prepare it ahead of time.

I've decided to tell all my clients I won't even start entering data until after IRS is ready. I may be putting many on extension this year. Maybe now is a good time to take a vacation.