OT: My Responsibilty For Extensions

[geekgirldany]

How do you all handle extensions for those that either do not call or do not return your call?

In the past I would go ahead an file a extension but I decided after reading up on it... I really should not do this.

Also, I "let go" of several longtime clients last year. I've had with those waiting until the last minute and not taking responsibility.
I mailed letters in November. I had one today who said they did not get it. She will owe penalties for the business return not being filed. She said I should have sent it certified. I have not in the past and never had a problem. Is this something I should do... send it certified in the future? She is threatening various things against my business.

Great day for this to come up.

Appreciate any input.

[dkss]

I do not file an extension unless the client requests one, or unless I deem one necessary because I will be unable to complete the return before the deadline.

They need to take responsibility for their own inactions.

[FEDUKE404]

Always remember

"Bad planning on your part does not constitute an emergency on my part!"

I've been available to prepare 2014 tax returns for the last four months or so. Now I let the answering machine handle all telephone calls, and I only check incoming email once or twice a day. My focus during these last few days has been an accurate completion of the work on my desk.

As for "automatically" filing an extension, I think there was a most interesting discussion on these boards about that topic last year. Some folks' feathers, not to mention their tighty whities, got ruffled and the thread eventually went "Poof!" into thin air.

To somewhat explain my position: I will work with any client to the best of my ability, but I do not seek out a client who is (for whatever reasons) dragging his feet. And I will file NO extension until I have some reasonable expectation of the accuracy of the numbers shown. Just filling out a "I don't owe nuttin' !!" extension will not fly with me.

Perhaps some others with more available time and a better memory than myself can elaborate on the prior discussion?

FE

[JohnH]

How do you all handle extensions for those that either do not call or do not return your call?

In the past I would go ahead an file a extension but I decided after reading up on it... I really should not do this.

Also, I "let go" of several longtime clients last year. I've had with those waiting until the last minute and not taking responsibility.
I mailed letters in November. I had one today who said they did not get it. She will owe penalties for the business return not being filed. She said I should have sent it certified. I have not in the past and never had a problem. Is this something I should do... send it certified in the future? She is threatening various things against my business.

Great day for this to come up.

Appreciate any input.

I agree that clients need to be held responsible for their own actions. I also think that if a tax preparer has been habitually taking care of a task for clients in the past, then they need to advise the clients if they change their practices. Personally, I'd probably have called the client if I hadn't heard from them after mailing a letter, but that's a courtesy rather than a requirement. With the client in question, I'm assuming you are talking about a corp return which was not extended, and if it's an "S" corp then the penalty mounts up quickly.

In any event, she can threaten anything she wishes, but at the end of the day it is her responsibility to get in touch with you to file the extension. You aren't required to do anything (certified or otherwise), and she is just mad because she avoided her responsibility and assumed you'd cover for her. It's just as likely that she got the letter, ignored it, and is now trying to lay some responsibility on you - don't accept it.

[JohnH]

I think you nailed it.

[geekgirldany]

"Bad planning on your part does not constitute an emergency on my part!"

Thank you for taking the time to read and post.

I actually have that sign hanging over my desk for all clients to see.

The previous discussion on extensions, I remember it very well. It actually changed my stance on filing for clients.

Edit: I could go into a long explanation about this client but I will not except to say she really let me have it last year. Got into a argument with her and fully expected she would not even be coming back to me. I wanted to make sure her and others did not come back by sending the letter.

This year I did major changes in my business. People could only stay the allotted time I scheduled. Around 15 minutes for drop off, 30 minutes at pickup. I no longer review returns with clients unless I feel that it is necessary. I ask them if they would like to review the return, if the answer is no, then I get signatures and they leave. If I call and email them about a extension and they do not reply, they are responsible for any penalties. My cut off time is March 31st for any tax returns, after that time clients get a extension (my date will be moved to March 15th next year). I no longer let people sit/talk/complain. I get them on their way.

I did send a letter stating these changes to all clients last year. It seemed to work very well.

[taxea]

I agree with the above posts. I send worksheets by the end of December. Call those I havent heard from around 3/15 to ask whether they are planning on using my services the current year and remind them that any documents not received by 3/31 for preparation, as well as any without complete information, will be extended.
If a client owes I send the voucher and amount and tell them their copies of the return will be sent later. If a client doesn't provide what I need to complete the return in time to file it I refuse to take responsibility for the penalty.
I have been known to fire clients and do so when they continually delay the process year after year. Send me an email I will send you a copy of my termination letter.

[geekgirldany]

This is what was happening with this client and one more. Habitually late giving me information and had been going on for atleast three years. I finally had to draw a line on what I would or would not do. I need even more procedures in place like you have.