Would you charge pain in the neck/"high maintenance" clients for 1065/1120s extensions?
If so, how much?
CornerstoneCPA wrote:If I have to file extensions, it is 30 minutes of my tax rate per extension even if it takes me 5 minutes to prepare each extension. I do not e-file them either, learned from mistakes on that front and now only mail via Certified Mail.
ATSMAN wrote:CornerstoneCPA wrote:If I have to file extensions, it is 30 minutes of my tax rate per extension even if it takes me 5 minutes to prepare each extension. I do not e-file them either, learned from mistakes on that front and now only mail via Certified Mail.
Just curious what problem you had with e-filing extensions? I don't recall filing a paper extension in the last 4 or 5 years!
Have had a couple of issues with UT transmitting extensions incorrectly, and IRS not accepting.
CornerstoneCPA wrote:Have had a couple of issues with UT transmitting extensions incorrectly, and IRS not accepting. At same time, I have had issues with IRS claiming extensions were not in the Certified mail package, when they were. I find it much easier to resolve extension issues with Certified Mail receipts than by providing eFile information from UT.
CornerstoneCPA wrote:ATSMAN wrote:CornerstoneCPA wrote:If I have to file extensions, it is 30 minutes of my tax rate per extension even if it takes me 5 minutes to prepare each extension. I do not e-file them either, learned from mistakes on that front and now only mail via Certified Mail.
Just curious what problem you had with e-filing extensions? I don't recall filing a paper extension in the last 4 or 5 years!
Have had a couple of issues with UT transmitting extensions incorrectly, and IRS not accepting. At same time, I have had issues with IRS claiming extensions were not in the Certified mail package, when they were. I find it much easier to resolve extension issues with Certified Mail receipts than by providing eFile information from UT.
Now I efile them AND mail certified copies in. No issues since I started that.
ATSMAN wrote:Now I efile them AND mail certified copies in. No issues since I started that.
But IRS says that if you e-file a form DO NOT send a paper copy
If UT has an issue with e-filing extensions, is it for certain types of returns or system wide?
Years back I had an issue in a lawsuit against me that I did not file the extension on time, causing taxpayer additional interest and penalties. I presented the court with the e-file acknowledgement from my system that the extension was accepted before deadline and that issue got thrown out of court. Had I paper filed, my certified mail receipt may not have had the same weight as an IRS ack.
ATSMAN wrote:It depends on the situation. I have about 4 or 5 1065 clients that routinely request extensions because their bookkeepers are extremely slow. One goes right up to the deadline. I charge a flat $100 because I have to make a quick calculation of the amounts to be paid with extension, plus deal with the usual prodding to get them going for the final return!
I had one PIA client that I charged an hourly rate but that was not enough for my aggravation so I finally cut him loose
southparkcpa wrote:We E File all extensions that are no money due. NEVER had a problem.
We send PDF of the extension to the client with money due. THEY mail the extension.
I make it clear to them, the check MUST clear by the 16th as proof. (Yes, I lie to them).
I recommend certified to them. I dont charge for this. A small premium is added to the bill. so a $700 1040, is now $750 etc.
smtcpa wrote:Why would you not e-file the balance due extensions? Of all the ones I would e-file, those are the top candidates.southparkcpa wrote:We E File all extensions that are no money due. NEVER had a problem.
We send PDF of the extension to the client with money due. THEY mail the extension.
I make it clear to them, the check MUST clear by the 16th as proof. (Yes, I lie to them).
I recommend certified to them. I dont charge for this. A small premium is added to the bill. so a $700 1040, is now $750 etc.
CornerstoneCPA wrote:One question I do have: if you do charge for extensions, do you invoice at time of extensions or build into final tax prep fee? I have some clients that do not like seeing separate extension fees, so I build it into their final tax prep fee.
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