Workload Corona virus

Thought I'd start a new thread rather than add to existing thread. My practice is heavy 1040's and closely held S-Corps but we only do about 250 1040's and 80 business's. The last 75 or so 1040's, all owe money , are partners in big law firms and other groups, earn big bucks, are in complex partnerships and usually are waiting on K1's. That said, 30 years as a CPA I find myself with very little in house work. My city is shutdown, all the big law firms will delay the K1's, many CPA firms producing the K1's are in shutdown.

Just a weird feeling but we'll get through this.

What is everyone else feeling or experiencing?

Unless something has changed and I have missed it, NCDOR will still charge interest on tax paid after April 15th. That is my main focus right now, along with getting returns out for those who are not working at the moment.

I have a few passive-aggressive clients who would like to be at "the top of the pile" after I've dealt with NC payments. I will take a view as to whether they should remain clients once the dust has settled.

Currently have very little exposure, pretty diversified and my bread and butter clients are financially strong. Tax returns are maybe 25% of my overall business at this point, and most of the 1040s are well off individuals or retired with nice income streams. I have one client that exposes me to risk at this point, but they are not vital to my cash flow. I am expecting the same delays with a handful of clients that I experience every single year.

If SC orders shelter-at-home, I do have one client with an accounting contract that may find themselves with an inability to pay me. That would be client #2 that exposes me, but it still is not much.

If anything, this could help me since my firm is already set up to be 100% virtual, whereas others have tremendous overhead and require the face-to-face interactions to get any work done or be efficient.

Unless something has changed and I have missed it, NCDOR will still charge interest on tax paid after April 15th. That is my main focus right now, along with getting returns out for those who are not working at the moment.

I have a few passive-aggressive clients who would like to be at "the top of the pile" after I've dealt with NC payments. I will take a view as to whether they should remain clients once the dust has settled.

My clients don't care about that... most are filed on or about 4/1 usually and we are working on them now.

They seem to be fine with an extension and payment and the virus is number one in their mind.

Most it appears will be extended as their firms won't be ready by 4/15.

Currently have very little exposure, pretty diversified and my bread and butter clients are financially strong. Tax returns are maybe 25% of my overall business at this point, and most of the 1040s are well off individuals or retired with nice income streams. I have one client that exposes me to risk at this point, but they are not vital to my cash flow. I am expecting the same delays with a handful of clients that I experience every single year.

If SC orders shelter-at-home, I do have one client with an accounting contract that may find themselves with an inability to pay me. That would be client #2 that exposes me, but it still is not much.

If anything, this could help me since my firm is already set up to be 100% virtual, whereas others have tremendous overhead and require the face-to-face interactions to get any work done or be efficient.

Same here.. im not worried about me, im simply commenting on the fact that it is 3/27 and we have 75 returns to go and none seem in a rush . Just weird.

Same here.. im not worried about me, im simply commenting on the fact that it is 3/27 and we have 75 returns to go and none seem in a rush . Just weird.

The firm I do per diem work for is exactly the same (just with a higher number of returns to go). Once clients heard that the deadline was extended, they moved on to more pressing things.

I expect that June and July are not going to be fun, though.

Same here.. im not worried about me, im simply commenting on the fact that it is 3/27 and we have 75 returns to go and none seem in a rush . Just weird.

I cannot say it has really changed for me compared to prior years, other than a few people want to take advantage of the IRS' prolonged payment deadline.

I already communicated to all of them that if they are my client, they are being extended by 4/15, regardless of the automatic filing extension, because other things may not be extended that could affect them. I sure am glad to see more and more states adopting the same deadlines as Federal...was going to be a nightmare with how many states I typically end up having to file in, though some of them have still not made any decisions.

Wednesday for a short period I realized I was completely caught up and nothing to process. Then a big file showed up which is about 30 hours of work - I'll get it all handled by Wednesday. After that I have a bunch of returns where I can complete all of them in <45 minutes each. I haven't heard from really any of them so I'm expecting to hear in May that they are interested.

I have about 20 returns I need to go out and deliver personally when the virus lets up.

I prepare tax returns (Federal, Virginia, Maryland, DC) for veterans, current active, out of country, federal agency employees, contractor and a variety of self-employed small business, Construction, RE Development, Attorneys, Physicians, etc. Luckily, I don't have any bars or restaurants or other hospitality (tourism) really hard hit by the shut-down.
I am advising them to get extensions (all my LLCs did) and get Individual extensions (make estimated payments via websites e-pay). I know I will have some who at July 14th will say, "get me an extension" - "well I can't because that was due 4/15/2020".
The IRS may abate late charges but the states are more reluctant to do so, and I see state assessments going out during this shut-down. I've got several cases in appeals and collections that are still active - Collection-Due-Process have not been abated, filing deadlines for tax court - I don't see any free extensions.
Much confusion about delivery of refund checks, electronic or paper? News says e-deposit to bank on last tax return, what if you don't have the account open or its your former wife?

We do about 900 total 1040 returns per year, but about 800 before the April 15-16-17 deadline. In Massachusetts, with Patriots day, tax season rarely ends on the 15th. We are right on pace with our 1040's and maybe even slightly ahead.

But people in the office notice that incoming rush has slowed down. We have historically told clients get your info to us by 4/1 if you want to beat the deadline. It is very quiet today on a Saturday for dropoffs.

The one thing that has always shocked me is how many returns go out the door in the last two weeks of tax season. Historically, we have almost 1/3 of the returns go out the last two weeks. So on April 1, we will have completed 560 returns but by the deadline we will be at 800. That has been the case for the last 20 years ( although the overall numbers go up each year). This year I do not think there will be the urgency so I am hoping we are at 700 by 4/15 but I really have no idea how people will react.

Most employees are working less. Instead of 12 hours today, I will work 7.5 hours. No work tomorrow.

Berkshire, how many staff members to facilitate 900 1040s? Do you do much work beyond tax?

There was a CPA where I live that finally sold out a couple years ago...just the CPA, his wife, and a part-time bookkeeper. Tax only. They did 650 tax returns per year between the 2.5 people, but their work hours were absolutely asinine! Starting at 4am and going until 9-10pm every single day through April 15...yikes.

There are 7 staff here. I'd say about 2/3 of our revenue is from Corporate work and 1/3 from 1040 work. It is a little hard to tell because a lot of the 1040's are related to S Corps and Partnerships but we tend to bill the entity for all the related 1040 work. We do many reviews and compilations.

We are busy year round as our biggest clients are 6/30 year ends and a lot of fiscal S Corps. We do not do any non profit work, maybe a 2 or 3 990 EZ.

There are one man shows (CPAs) around here that do close to 1,000 1040's by themselves. They have sit down appointments with them as well. I do not know how they do it. I have less than 5 sit down 1040 apoointment, but between the other accountants in the office they might have 100 sit downs. But about two weeks ago they cancelled all sit downs so that is why I think we are still slightly ahead of pace even though people are working less hours.

I sent an email out to everyone stating that deadlines were automatically extended. I said that I am continuing to work every day, but I am not going to work the long hours. I am triaging the returns differently: instead of first-in, first-out, I will turn my attention to those who need their returns soon, for example, for a refinance. Please let me know.

2 people need their returns. No one else cares. This is good. I put self-care on the back burner during tax season, and I can't do that this year.

So it is 11:00, and I'm just getting started. Slept in. Watched a little news with husband. Sauna. Breakfast. Called Mom & Dad. Chatted with daughter. Good start to the day.

JAD - " I put self-care on the back burner during tax season, and I can't do that this year." This resonates with me and I made the same decision a few weeks ago. Feels very uncomfortable but I could get use to this. Kind of scarry!

I made that decision when I started my own firm after having worked at another firm, and then in private accounting that nearly killed me. I work normal hours, maybe maxing out at 50-60 hour weeks if I’m buried but otherwise focus on eight hour days. It’s actually unreal how much work I manage to get done, and generate more revenue than other CPAs working far more hours than I do.

I am also stopping growth at $300-350k net income, which is about the max I can achieve while working these hour and maintaining client quality control and quality of services my clients have grown to expect. Money isn’t worth sacrificing my life.

Agree, totally. I realized that it is unlikely that I will wind up living in the bario or living in a 15,000 sq ft mansion at the top of the hill. I am where I am, and it is good. The last $20k is killer, and it is not worth it.

I have a little bit of capacity in this practice, but I think I am not going to take more clients. Like EZTAX said, I could get used to this. Why not get used to it?

If the government would just move the normal deadline to July 15, or another reasonable date, we could have a life and take care of ourselves every year. I know some people do not want the deadline moved - they like working like crazy and then taking the summer off. That's fine if others want to work like that, but this year has about done me in. My father died in early March after an extended illness. If you have never gone through a tax season with an illness or death in the family, you do not know the meaning of stress.

I have worked fewer hours this tax season due to having to take weekends off to help take care of my dad. I feel like I am about where I normally am as far as work goes. I think I have been more productive during the week, knowing work had to get out the door. I will have a few more extensions than normal, but not many more.

We here are also getting used to this. We always have a post tax season meeting and talk about the good, the bad and the ugly. Then we make changes for the next year. We are not going to know what talk about this year.

Just checked out my March billings to date compared to last year. Ugh!

Seaside, I know your stress. Several years ago, my Mom died on January 30th of Alzheimer's and then my dad died (unexpectedly) 5 weeks later on March 4th that same year. I remember telling the Church and Funeral Home, just repeat the first one with whatever details. I was still in a fog at Christmas. Terrible year.

My condolences to you and your family. Just do what you can, the rest of the world will still turn.

Seaside, I'm sorry. I haven't had a death in the family during tax season, but I do have an 80 year old mom in the hospital right now, and no one is allowed to visit her. That is part of my thinking about not taking on more work. We need some flexibility to respond to life's emergencies.

I hope you are doing ok and I am sorry for the loss of your father.