Paper File Now? Or "stockpile" for 7 weeks?!

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#1
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Due to the current status of the IRS response times, when a 1040 tax return has been prepared and ready to be filed, common sense suggests waiting in many cases to e-file rather than sending it in via mail.

Of course, this is client specific.

Problems:

Once an 8879 is signed, we are supposed to file the tax return quickly, right? 3 days, is it?

These tax returns are already late, but what if an election expires in the calendar year? Then obviously waiting is a bad choice.

There could be other unforeseen circumstances as to why waiting could result in unfavorable issues for the taxpayer.

There could be unforeseen issues with paper filing and a slow IRS, too.

Obviously, we should present the facts and leave it up to a client. But can we even provide waiting as an option? (stockpile rules). Even if we don't have them sign the 8879 yet, are we behaving in some manner that goes against circ 230 or anything like that?

Does anyone have a canned response to lay all of this out to allow the client to make a choice?

What do you do?
Last edited by ItDepends on 29-Nov-2021 1:45pm, edited 1 time in total.
 

#2
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I don't think there is a canned response because the facts are operating so far outside of "normal" at the moment.

As you note, explain to the client which approach they prefer and let it be their decision. I held on to a couple of returns in December last year until efiling opened back up. It was the right move in those instances, but it was also the client's choice.
~Captcook
 

#3
sjrcpa  
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Stockpiling doesn't apply to the period of time when efiling is not available.
 

#4
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I'd let the client make the decision after informing them of all dynamics.

For returns that owe a balance, I'd suggest filing now for obvious reasons, and to start the statute of limitations.

Returns that are calculating a refund are the ones that should be given thought. IMO.
 

#5
Frankly  
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Taxpayers hire a pro to analyze facts and take the best path. I ask a few questions, then tell them what's best for them. There are big downsides to paper filing in the current IRS environment. In late November client is already 6 weeks late beyond the extended deadline. They can wait a few more weeks to file, and still get a return processed faster. This isn't something I let them decide. I tell them what is best.
 

#6
Beagle  
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sjrcpa wrote:Stockpiling doesn't apply to the period of time when efiling is not available.


Doesn't that seem rather obvious?

I also will hold an efile if a client instructs me to do so. Last spring there was the issue of unemployment taxes being given an exemption, people wanted me to hold off efiling until the software updated.
 


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