Just to be clear

[kpangelinan]

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?

I'm with Bob on this one......I'm doing exactly as described above.

Extensions take minutes as well.

Extensions can cost you business as well. See the quote just below from Bob.

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

^^^Agreed.

[JohnH]

Yes extensions can cost you business. It's been my experience that the business extensions cost me is business I don't want anyhow. And it's more than offset by the business extensions gain me. So it isn't even a wash - extensions produce a net gain in business if handled properly.

[kpangelinan]

Ye,s extensions can cost you business. It's been my experience that the business extensions cost me is business I don't want anyhow. And it's more than offset by the business extensions gain me. So it isn't even a wash - extensions produce a net gain in business if handled properly.

I guess to each their own....I'm not sure how extension business cost you money, but maybe so. I have a certain amount of clients who file extensions every year even if it cost them in penalties.....they just ask to do them later. This also provides me with a great income in the "off-season" if you will, even though my practice doesn't really have an off season since only 40% of my annual revenue is from tax prep and the rest is from representation. My extensions are just as profitable as my "on-time" clients....they don't take any more time then any other client and I charge a nominal fee for the extension which we efile as well.

[thomtax]

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?

In one of the IRS news emails (I'm not sure if it was Guidewire or which one) the IRS states that for this situation they do not consider it stockpiling to prepare returns and then filing them when the IRS is ready.

LT

[JohnH]

I'm in agreement with all you said - extensions facilitiate preparing more returns, thus more income. In my case, the returns on extension are frequently the more complex returns, so the per-return fee is higher.

I was also acknowledging that having an extension policy will cost you some business because that had been stated earlier on this and another thread. I agree that from time-to-time, this is going to happen. This would be the last-minute client who nevertheless insists on getting it done before the 15th. I have a few of these who call almost every year. I tell them I can only accept their info if we file an extension, and then whether I can get the return finished by the 15th will depend on how my work schedule plays out. If I can't get it done, the extension has simply taken the 15th off the table insofar as having any meaning is concerned. Some of those people won't accept that - they insist on assurance that the return will be finished by the 15th in spite of their laziness. Those clients will go somewhere else, so it costs you that segment of business. (I will usually give them the phone number and location of a JH or HRB office, just as a courtesy). As I said, I don't want that type of client anyhow. And they are more than offset by the many clients who understand the reasoning behind the extension and have enough common sense to understand it.

On balance, the type of client you lose by having a firm extension policy is insignificant compared to the benefits you gain in personal health & good business practices.

[kpangelinan]

I'm in agreement with all you said - extensions facilitiate preparing more returns, thus more income. In my case, the returns on extension are frequently the more complex returns, so the per-return fee is higher.

I was also acknowledging that having an extension policy will cost you some business because that had been stated earlier on this and another thread. I agree that from time-to-time, this is going to happen. This would be the last-minute client who nevertheless insists on getting it done before the 15th. I have a few of these who call almost every year. I tell them I can only accept their info if we file an extension, and then whether I can get the return finished by the 15th will depend on how my work schedule plays out. If I can't get it done, the extension has simply taken the 15th off the table insofar as having any meaning is concerned. Some of those people won't accept that - they insist on assurance that the return will be finished by the 15th in spite of their laziness. Those clients will go somewhere else, so it costs you that segment of business. (I will usually give them the phone number and location of a JH or HRB office, just as a courtesy). As I said, I don't want that type of client anyhow. And they are more than offset by the many clients who understand the reasoning behind the extension and have enough common sense to understand it.

On balance, the type of client you lose by having a firm extension policy is insignificant compared to the benefits you gain in personal health & good business practices.

Agreed....I don't think anyone here is disagreeing with your philosophy; it's a good one. The first post was saying that they aren't doing any data entry until time to efile mid to late Feb, which means extensions and in my opinion some unnecessary lost business (not the kind you described above which is normal and ok to lose in my opinion), while someone else posted they aren't doing any extensions to be free the first two weeks of October....again, from a profit stand point, not the best solution unless you did all your extensions prior.

[JohnH]

I need to wait until after that second cup of coffee before I reply in the AM...

[kpangelinan]

I need to wait until after that second cup of coffee before I reply in the AM...

Hahahaha....love it. I'm still on my first cup also.

On a separate note, I'd wish I'd utilize these boards more in the past. I learn so much from them. I have used them in the past for questions in my own practice but learn from reading others as well. Will have to put it in my daily routine this tax season of checking, reading and responding.

[BOB W]

Hahahaha....love it. I'm still on my first cup also.

On a separate note, I'd wish I'd utilize these boards more in the past. I learn so much from them. I have used them in the past for questions in my own practice but learn from reading others as well. Will have to put it in my daily routine this tax season of checking, reading and responding.

At this point in the tax season my biggest fear is not knowing all that is in the adjusted tax laws. It will be my priority next week to get up to date. I usually start the season with my own checklist of questions to ask my clients and issues that need to be addressed on each return.

This board usually helps me zero in on many issues for that checklist. Thanks to all for that info, albeit piecemeal.

[joanmcq]

I often start entering info & find I'm missing something anyways. Even with the extensions, I like to get as much info to determine if they have to make a payment by the 15th.

I will put the blame where the blame is due: last minute changes to the code by Congress.