crazy last minute clients

[oceanlovin'ea]

Just got a phone call:

Hi Linda. Bill and I were on our way home and he asks me what about April 15th.
Client says to husband yea what about April 15th?
He says income taxes are due
Client says so.......
He says 'It's April 15th!!!"
Client says "Oh, no. I forgot AGAIN! I didn't know it was April 15th (She is an aide at school)
So she calls me and tell me conversation and asks if I filed an extension for them.
I told "Yes, I had already filed the extension"
She yells to her husband, " See Bill. I told you should takes care of me. She knows I color my hair!" Thank you. Talk to you later.

I just sat in my chair and laughed and laughed. Last year I think she called about a week after tax season ended and said oh no.......yes I took care of you.

Linda EA

[SFBOB]

Has Something Changed

I thought for an extension to be accepted as an extension it had to include a check for any balance due. I alwalys file a return with the best material I have when I expect the client to owe. The penalty for late filing and late payment is 5% per month not to exceed 5 months or 25%. There after the penalty is 1/2 % per month plus interest on the unpaid balance due. Agree or disagree anyone? Two days left!!!

[Lion]

No Check

An extension does not have to include a check. Of course, interest and penalties will apply so it's best if money goes with it.

[oceanlovin'ea]

I don't have her W-2's yet, so I don't really know how return will end up. But they will probably owe. Technically it should be filled out as best we can but she probably doesn't even know where her info is right now. So I just electronically file the extension.

In fact a couple of weeks ago, I got a phone call from IRS. They were trying to contact these people because they were in default with their payments. Since I had POA they called me first. I just told the agent that I had gotten the POA several years ago because I had to contact IRS for some information. I had nothing to do with their payment arrangements. I suggested that he call them directly. He said he would take my POA off their account.

So I guess that is something we should be careful about. We should check who we are POA's for and take our name off any we don't want it on for.

Linda, EA

[SueBaby]

I don't have her W-2's yet, so I don't really know how return will end up. But they will probably owe. Technically it should be filled out as best we can but she probably doesn't even know where her info is right now. So I just electronically file the extension.

In fact a couple of weeks ago, I got a phone call from IRS. They were trying to contact these people because they were in default with their payments. Since I had POA they called me first. I just told the agent that I had gotten the POA several years ago because I had to contact IRS for some information. I had nothing to do with their payment arrangements. I suggested that he call them directly. He said he would take my POA off their account.

So I guess that is something we should be careful about. We should check who we are POA's for and take our name off any we don't want it on for.

Linda, EA

I have been POA for this guy in jail for 3 years now and 3 years ago called IRS and said take me off anything he has (found out he has 25 years) IRS STILL sends me paper work on him and calls me and I STILL tell them take my name off.

The clients I WANT to be POA on I have to fax and refax my info for them and still are waiting for an answer back to talk to someone there about their return. IGo figure!!
I even cked that box at end of 1040 yes I want to be allowed to discuss this return with the IRS ; guess that is not enough for them.

[joanmcq]

Sue, you have to formally rescind a POA. Calling them up won't do it.

Get a copy of it, write 'withdrawn' on top and sign the back again, after writing 'withdrawn'. that's the way the firm I worked at did it.

[JohnH]

I thought for an extension to be accepted as an extension it had to include a check for any balance due. I alwalys file a return with the best material I have when I expect the client to owe. The penalty for late filing and late payment is 5% per month not to exceed 5 months or 25%. There after the penalty is 1/2 % per month plus interest on the unpaid balance due. Agree or disagree anyone? Two days left!!!

Disagree. Bob, there was a time when you had to pay the estimated balance due on the 4868 in order for the extension to be valid, but they changed it several years ago. Now all that's required is to file the 4868 with a good faith estimate.

Regardless of whether any payment is made, properly filing the extension will completely eliminate the 5% per month FTF penalty. Any underpayment will be subject to a 1/2 of 1% per month penalty for failure to pay, plus interest, currenly at 4% APR. This works put to the equivalent of an unsecured loan at a 10% APR equivalent rate. Not a bad deal for anyone who doesn't have the money to pay, and well worth the effort to get it right.