Extended tax season?

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#41
Wiles  
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Ditto to those last 2 posts. It's 10-30 minutes per 1040 client making a mock up tax return to estimate the extension payment, calculate the estimated tax payments and then communicate with them. All of this is a waste of time.

I guess this probably just means I have too many clients...
 

#42
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I emailed my corporate clients today and told the remaining ones to send me checks for their franchise taxes by March 11 to go in with their extensions. Received a reply from one that they had put a package in the mail to me yesterday with their corporate information in it. Advised them I'd be looking for the package, but they would still be extended, as I had about 10 in before them waiting to be prepared. I guess people think theirs is the only returns we do! LOL!
 

#43
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Wiles wrote:Ditto to those last 2 posts. It's 10-30 minutes per 1040 client making a mock up tax return to estimate the extension payment, calculate the estimated tax payments and then communicate with them. All of this is a waste of time.

I guess this probably just means I have too many clients...



This post will be unpopular, but this is one reason I'm not a huge fan of extensions. If I have to prepare the tax return anyway, just bang it out and deliver for review and signature. The extension often only adds to the time costs of preparing a return.

Obviously there are lots of reasons why it makes sense to extend. Im not denying that.

But from a business perspective, there's only so many you can do, extension or no extension.

As for the procrastinators, they are just going to exhibit the same behavior in September and October, and by then the stakes could be much higher, especially if they have any non us interests.

Our practice does not revolve around extensions so much.

We run a sprint, not a marathon, then we take lots of travel breaks and work 10-3 in the off-season - but of course that is just preference.
 

#44
Frankly  
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ItDepends wrote:This post will be unpopular, but this is one reason I'm not a huge fan of extensions.

I hate them too. No way will I do a mock up return solely for the purpose of helping Mr. Procrastinate avoid an underpayment penalty. If he already made his estimated payments I've already done most of that work. Nope. Make a good faith 2 minute SWAG and extend. If he needs to pay more in to avoid a penalty, he gets an email and a link to the payment website.
 

#45
Wiles  
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About half of the extensions I prepare are because of me. 4/15 is looming and I have piles of untouched / half-touched work around me. It's because I have too many clients. Or it's because I work in a highly seasonal business. Or, more likely, a combination of both.
 

#46
TaxDude  
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Wiles wrote:About half of the extensions I prepare are because of me. 4/15 is looming and I have piles of untouched / half-touched work around me. It's because I have too many clients. Or it's because I work in a highly seasonal business. Or, more likely, a combination of both.


Nailed it. This is me too. Even in the 'before times' I had this problem.

I would favor an extension, even to May 15th. I think that would be reasonable given the difficulty getting work done these days. We are still answering client questions and providing reports for PPP loans and this local grant or that one.
 

#47
Wiles  
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Trying to decide when to make the call to take a break from prep work and start filing 3/15 extensions and sending vouchers and communicating with clients. I have been holding off not wanting to waste this time if they are going to move the deadline. But I think the 3/15 deadline is a guarantee right now. I guess I will start working on those tomorrow...
 

#48
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I'll start on Monday.
I've got a few more corps and partnerships in process that I'd like to get out the door before the time suck begins.
 

#49
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I'm going to start on Monday. Right after Recked starts. I like to live dangerously.
 

#50
Wiles  
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https://www.irs.gov/newsroom/filing-sea ... ry-26-2021
Year over year filing season statistics:
Total returns received down 23.7%
Total e-filing by tax professionals down 31.0%

And now for something completely different.
https://content.govdelivery.com/account ... %7D#Second
IRS says, "Regardless of which set of numbers are used, this year’s filing season is on track and progressing smoothly thanks to the work of IRS employees, tax professionals, tax filing industry partners and members of the Free File Alliance."
Last edited by Wiles on 9-Mar-2021 11:02am, edited 1 time in total.
 

#51
sjrcpa  
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And on Wednesday when they need to start mailing $1,400 checks and revising forms and system for nontaxable unemployment?
I think they will sing a different tune.
 

#52
EZTAX  
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I sure do not see how these numbers backs up his claim.

We are getting many senior citizens in who normally go to Scout but this year Scout wants them to use their services over the internet and they cannot deal.
 

#53
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I think that the IRS will fold shortly after the American Rescue Plan is signed into law, and we're going to get a postponed deadline, probably to 6/15, as much as it pains me to think about that.

The IRS will have to revamp forms and update efiling schema. So will software vendors. It's going to cause a log jam.

Legislators and their eagerness to pass retroactive tax legislation are the primary reason that a postponed deadline will be granted. Make no mistake about it. I hope this is not the new normal... Seriously considering a letter to the AICPA after 4/15. We pay them to lobby and represent our interests.
 

#54
Wiles  
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I agree. They will cave. Now they can blame it on Congress. That's how it all works.

They also want to wait until after 3/15 because they hate Wiles and want him to spend 10 hours processing nonsense extensions/estimates for 1065s and 1120Ss instead of moving real work.
 

#55
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ManVsTax prefers to complete some returns and send out some invoices before 6/15...

Once that postponement gets announced, you better believe clients are going to go to sleep until 5/15.

Going to setup harsh internal deadlines for a 6/15 filing, otherwise we go on extension. This is not how I wanted to spend my late spring /early summer.
 

#56
Wiles  
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Wiles is going to go on vacation while ManVsTax beats his head against the wall trying to get work in ;)
 

#57
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I would never abuse my head like that....

*sipping a vodka on the rocks* :)
 

#58
Wiles  
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:lol: Ha ha

For Wiles, Jameson Stout Edition (on one rock) & The Wood Brothers is perfect for processing nonsense extensions...
 

#59
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Wiles wrote:https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-february-26-2021
Year over year filing season statistics:
Total returns received down 23.7%
Total e-filing by tax professionals down 31.0%

And now for something completely different.
https://content.govdelivery.com/account ... %7D#Second
IRS says, "Regardless of which set of numbers are used, this year’s filing season is on track and progressing smoothly thanks to the work of IRS employees, tax professionals, tax filing industry partners and members of the Free File Alliance."


I'm down 30 returns YTD which is about 15%.

No idea why - I feel like I'm working harder and that my team is doing a much better job.

Wiles wrote:I agree. They will cave. Now they can blame it on Congress. That's how it all works.

They also want to wait until after 3/15 because they hate Wiles and want him to spend 10 hours processing nonsense extensions/estimates for 1065s and 1120Ss instead of moving real work.


I agree. (And also, this is clearly a personal attack if I ever saw one.)
 

#60
EZTAX  
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Itdepends - I am not sure if you are being sarcastic. You realize Wiles is attacking Wiles. I think we are all allowed to do this ;)
 

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