For most of my last-minute filers, it’s absolutely their fault. Very few of them are due to late K-1s, and I’m reasonably understanding of those. My typical late filer is a high-income Schedule C type, such as an MD or real estate honcho, who is far behind on his tax payments because of all the money he’s poured into his horse farm or airplane(s) or ski condo, and can’t force himself to face the music.
I appreciate everyone’s suggestions. I’m thinking now that the drop-dead letter is a bit too drastic and, as someone said, would send a message to all my extension clients that I really don’t want them. That’s not the case, of course, it’s only the abusers. I already send a mid-September cutoff letter; the serious procrastinators ignore it. I like the idea of sending it cert ret rec. That would (presumably) get me off the hook for late filing, and I would send it only to the really sicko procrastinators.
The problem, as my wife and co-worker is always telling me, is that I care more than my clients care. She’s right, of course; maybe I’m the one who’s sick. :-p
Chuck
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Marcella K. Anderson CPA
Sent: Monday, October 20, 2008 1:05 PM
To: taxchat@yahoogroups.com
Subject: RE: [taxchat] "Drop dead" letter?
Chuck this was my least stressful year. I had my receptionist call each of the “usual” late ones in August and hold them to a “date”. When the date came up and they called for more time, she said there was no more time and said we could do an estimated return and amend after the 15th. None of them liked that and came up with the information on time. Now my daughters are CPAs here and they didn’t do that and were a bit stressed out. They are young and can take it.
I think the fact that the K-1s have to be out by 9/15 next year will eliminate your problems a lot.
The letter sounds neat, but no one who gets one will think it is about him.
My take.
Marcella K. Anderson CPA
10713 Plano Road Ste 200
Dallas, TX 75238
(214)343-7299 Phone
(214)343-9366 Fax
Disclaimer as required by IRS Rules of Practice: Any discussion of tax matters contained herein (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under Federal tax law.
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Chuck Warman
Sent: Monday, October 20, 2008 11:21 AM
To: taxchat@yahoogroups.com
Subject: [taxchat] "Drop dead" letter?
I had the same experience this year that several of you have already
mentioned...this was by far my worst year ever for clients not getting their
tax stuff to me until the last minute. The 10/15 deadline just about did me
in, and I am not kidding. I'm seriously concerned about my health if I have
to go through this bloody wringer again. I'm considering a method to solve
it, and I thought I'd run it past you all to see what you think.
I am thinking about sending out a letter, shortly after next April 15, to
*every* tax client that I extend because they didn't get their stuff to me
in time (there are always a few that are my fault). The letter would state,
as politely as possible, that if they don't have all their tax info to me by
August 1, they will have to find another preparer. Period.
I would prefer to limit this policy to only the most serious
procrastinators, except that I'm afraid that if I wait until, say, late
September to terminate a returning client, they might have a cause of action
against me if they incur a late filing penalty. But if I set the drop-dead
date at August 1, they'll have plenty of time to make another arrangement to
have their return prepared. I would also have to allow for some
circumstances beyond the client's control -- the most obvious case being
late-arriving K-1s.
I'm asking for a few of you put on client hats and let me know how you'd
feel if you got a letter like this. If you don't think it's a good idea,
what alternatives can you offer to help me avoid another 10/15 crunch like
this last one? I'm just too old for this crap anymore.
Chuck Warman, CPA
Wichita Falls, TX
-------------------------------
Thanks,
Chuck
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
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