Late Filer Rant

[Burke]

Well, its started. The phone calls....when are you in? (read my client letter), when can I drop off my papers? (read my client letter -- use mail slot anytime), what do I need to give you to file? (really? I have done your return for 15 years), its "so & so" - call me back (you must be kidding - use email if you have a question), and on and on.......

[mbigelow]

Couldn't agree more. I even sent all my slow clients an email a couple weeks back saying that if I didn't receive ALL their docs by March 31, they'd likely have to go on extension. A long-time client (who got the email) just called me a few minutes ago to ask, "Can I bring you my tax stuff next week? I really need my taxes done by the due date." And a guy who literally lives next door to my office sees me coming and going and keeps saying he'll get me his stuff. I told him a few days ago that he'd probably have to go on extension. His response? "I can't, I'm on an installment agreement, I need it done by April 15." (I'm not telling anyone the date is April 18 this year!) He still hasn't brought his docs in. Anyway, good luck to all on the final stretch, thanks for indulging my rant on top of Burke's- feel free to add your own.

[kathyc2]

My rant is on sticky notes. I'm going to go ballistic on the next person that puts a sticky note telling me that a W-2 is a W-2!

[Burke]

Worse is the one who comes in to drop off stuff and proceeds to examine every document for 30 seconds, and then tell me what it is before he hands it to me....... Just want to snatch the entire pile right out of his hands...

[geekgirldany]

This is my worse year for late filers. I ran a report in Drake and it showed I had only prepared 85 tax returns. I usually do about 125 to 150. Well it started last week with people just stopping by and dropping off their tax info with no appointments. These are more complicated tax returns as well. Not sure what the deal is this year.

[JohnH]

Couldn't agree more. I even sent all my slow clients an email a couple weeks back saying that if I didn't receive ALL their docs by March 31, they'd likely have to go on extension. A long-time client (who got the email) just called me a few minutes ago to ask, "Can I bring you my tax stuff next week? I really need my taxes done by the due date." And a guy who literally lives next door to my office sees me coming and going and keeps saying he'll get me his stuff. I told him a few days ago that he'd probably have to go on extension. His response? "I can't, I'm on an installment agreement, I need it done by April 15." (I'm not telling anyone the date is April 18 this year!) He still hasn't brought his docs in. Anyway, good luck to all on the final stretch, thanks for indulging my rant on top of Burke's- feel free to add your own.

The extension won't invalidate his installment agreement (this is true even if he shows that he owes money on the 4868 and doesn't pay). But if he files his return without paying (either by Apr 18 or during the extension period, THAT will invalidate the I/A).

[mbigelow]

The extension won't invalidate his installment agreement (this is true even if he shows that he owes money on the 4868 and doesn't pay). But if he files his return without paying (either by Apr 18 or during the extension period, THAT will invalidate the I/A).

Thanks, John. He'd already told me he couldn't pay his taxes. If he goes on extension, then we file the return by the extension deadline, will he then be able to add the amount owed to his current agreement?

[TAXNJ]

Thank goodness for late filers

Understanding late filers by now and the type you want.

After April 2nd most late clients get extensions.

Not bad because Junior Preparers get more time and experience and make more money because of additional fees and retainer (upfront- non-refundable) clients pay. Clients do not mind paying. Also, clients agree to pay for later appointments and after 1st reminder telephone call. It is all in the Engagement Letter Agreement that the client reads, agrees and signs.

Bottom Line = clients are happy and so is the Practice.

[kathyc2]

This is my worse year for late filers. I ran a report in Drake and it showed I had only prepared 85 tax returns. I usually do about 125 to 150. Well it started last week with people just stopping by and dropping off their tax info with no appointments. These are more complicated tax returns as well. Not sure what the deal is this year.

Sorry... I'm pretty much on coast mode right now. I got blasted early-mid March but only have a dozen or so in various stages of completion now and only another 20 or so more to come. Depends on my mood if I except new clients or not at this time of year.

[Twin Turbo Z]

Sorry... I'm pretty much on coast mode right now. I got blasted early-mid March but only have a dozen or so in various stages of completion now and only another 20 or so more to come. Depends on my mood if I except new clients or not at this time of year.

Coast mode here too. Still have maybe 75 more to do. Might get 50 of those finished, but the rest will be extensions. And also (like you) depends on my mood whether we take on new clients this late. Nice to be in that position !!!

[FEDUKE404]

So that's the trick !

Sorry... I'm pretty much on coast mode right now. I got blasted early-mid March but only have a dozen or so in various stages of completion now and only another 20 or so more to come. Depends on my mood if I except new clients or not at this time of year.

I would LOVE to "except" a few selected clients at this time of year. . .

FE

[kathyc2]

I would LOVE to "except" a few selected clients at this time of year. . .

FE

Ooooooops!

[nwtaxlady]

Same here!

My rant is on sticky notes. I'm going to go ballistic on the next person that puts a sticky note telling me that a W-2 is a W-2!

Oh ya, I have a few clients that do that too. They put a sticky note on every single document... W-2, interest, property taxes, mortgage interest, you get the picture... as if I have never seen these documents before. That is my rant too.... Some times I take them all off and lay them on my desk and take a picture with my phone and send it to my friend who also has a tax business in another nearby town just for giggles cuz it really annoys me! The clients think they are helping you, but actually not!

I'm glad I am not the only one that it annoys!

[kathyc2]

Oh ya, I have a few clients that do that too. They put a sticky note on every single document... W-2, interest, property taxes, mortgage interest, you get the picture... as if I have never seen these documents before. That is my rant too.... Some times I take them all off and lay them on my desk and take a picture with my phone and send it to my friend who also has a tax business in another nearby town just for giggles cuz it really annoys me! The clients think they are helping you, but actually not!

I'm glad I am not the only one that it annoys!

I had one last week where they gave me a nice printed listing of their charitable donations. Then, instead typing the total on the sheet, the total was on a sticky note!

[JohnH]

Thanks, John. He'd already told me he couldn't pay his taxes. If he goes on extension, then we file the return by the extension deadline, will he then be able to add the amount owed to his current agreement?

Probably so, but it depends upon a few factors. 1) How much will he owe in total when the 2 years are combined?, 2) has he combined two or more years in the past?, 3) does he have any unfiled returns?

I've often seen 2 or more years combined. It isn't cheap, since the IRS will charge a new setup fee and of course the interest and FTP penalties continue to run (which is roughly the equivalent of paying slightly under 1% per month for the deferral). But all in all, it's not a very expensive way to borrow on an unsecured loan if the taxpayer has no other resources. IRS is generally very easy to work with when the amounts owed fall within their guidelines.

A simple call to their collections dept is all it takes. I think that's preferable to a paper request on an online application when there's an unusual issue such as multiple years.