Delays and Stockpiling.

[Jack from Ohio]

Subject: Due to late tax law changes, stockpiling rule doesn't apply

Due to late tax law changes, the 2013 filing season for processing individual income tax returns will begin on January 30, 2013.

Certain tax returns will not be accepted, either electronically or on paper, until later in the filing season. Details on affected forms are in IRS News Release IR- 2013-2.

EROs and Online Providers may hold tax returns containing one or more of these forms until the IRS can accept them. EROs and Online Providers must advise taxpayers that the returns will not be e-filed until the IRS can accept the returns beginning January 30. Clearly explain to the taxpayer that this means the period for processing the return and/or checking the taxpayer's refund status cannot begin before January 31, 2013.

Therefore, the e-file stockpiling rule does not apply in this situation. For more details on stockpiling, see Publication 1345 Authorized IRS e-file Providers e-filing Individual Income Tax Returns.

[Guest Taxed]

IRS was forced to do this. Remember they did this in 2011. I am going to make up a disclosure form and have the taxpayer sign it so that they can't complain that I delayed their refund which will be delayed anyways. Taxpayers got spoilt with that 10 day refund deposit.

[Chowdahead]

Yikes I see that Form 4562 Depreciation and Amortization is on the list of forms that cannon be e-filed until Late Feb. or early March! This means owners of rental property, are going to pretty upset.

[Lion EA]

And, that passive activity form also.

[Janitor Bob]

Not to mention Schedule C filers like myself who also have depreciation :angry:

[DougO]

The only thing I am stockpiling right now is a lot of anger and frustration. And I have no idea what line to enter that on since I can't open a return yet !!

[Guest Taxed]

Tax Preparation Disclosure and Agreement Addendum

This agreement is between “Your Name” doing business as “Your Company Name”, hereinafter referred to as the Tax Preparer in the county of “Your County” in the state of “Your State” and “Tax payer name”, “Tax payer full address”, hereinafter referred to as the client and executed on “Date”.

1) Whereas Client is desirous of filing the 2012 Federal and State tax returns on “Date”.

2) Tax Preparer has notified Client that IRS will not accept an electronic filing before January 30, 2013 for most returns.

3) Tax Preparer has also notified Client that certain complex returns involving residential credits, depreciation and other deductions will not be accepted by IRS on January 30, 2013 and IRS has not notified a date when it will accept the electronic filing.

4) Client understands these facts however; it is willing to electronically file before these dates.

5) Client hereby indemnifies Tax Preparer for any liabilities and consequences of filing before IRS is ready to accept.

6) Tax Preparer will not be responsible for any delays, penalties or interest as a result of filing early an incomplete tax return.

7) Client also agrees to pay Tax Preparer an additional sum of $50 to prepare amended tax returns if necessary to correct any errors as a result of early filing.

8) This agreement is an addendum to the client service agreement if one is executed after this date for tax preparation services.

These covenants are hereby mutually agreed.

Tax Preparer Client (If MJF both spouses must sign)

Date: Executed in the county of

[Guest Taxed]

This is a draft of my agreement if a client insists on filing early. You guys can change this to suit your practice but I believe this will protect us from any liability if we have to file early because they insist.

[David1980]

Yikes I see that Form 4562 Depreciation and Amortization is on the list of forms that cannon be e-filed until Late Feb. or early March! This means owners of rental property, are going to pretty upset.

Unless there's new assets the 4562 issue might not be so much an issue with rental. Since you'd only need it the first year for the asset, so if nothing's added that probably wouldn't stop the return. The 8582 would though, so the rentals get delayed anyway.

[Dan]

Concerning form 4562, what about farmers that need to send in their tax return by March 1 if they have not paid estimated taxes.

[Guest Taxed]

Shock and Awe! One of my good clients called today to complain that her daughter who is in a bit of a financial bind saw the Jackson Hewitt ad on TV and went to Walmart to the JH guy to get it done. Obviously she did not have her W2 but thought since they can do without W2 took her Dec pay stub. I gues half way through the process she figured found out that she would have to wait until Jan 30th. to actually file. This is just preliminary work. Upset she left, crying to her mom. Now she has an appointment to see me pronto on Jan 29 evening. New client for me because her boyfriend use to turbo tax her return, but I guess he is not available!

I DVR the JH ad and if you see closely they have a very small print about Jan 30 that flashes for a sec in all that red color that no one sees! What a sneeky way to do business!

I am tempted to send a mass e-mail out to some of my clients who I think may be tempted to go there to watch out!

[TaxMan60601]

http://www.irs.gov/uac/Newsroom/List-of-IRS-forms-that-1040-filers-can-begin-filing-in-late-February-or-into-March-2013

List of IRS forms that 1040 filers can begin filing in late February or into March 2013

The following tax forms will be accepted by the IRS in late February or into March after updating forms and completing programming and testing of its processing systems. A specific date will be announced in the near future.

[JohnH]

Tax Preparation Disclosure and Agreement AddendumThis agreement is between Your Name doing business as Your Company Name, hereinafter referred to as the Tax Preparer in the county of Your County in the state of Your State and Tax payer name, Tax payer full address, hereinafter referred to as the client and executed on Date.1) Whereas Client is desirous of filing the 2012 Federal and State tax returns on Date.2) Tax Preparer has notified Client that IRS will not accept an electronic filing before January 30, 2013 for most returns.3) Tax Preparer has also notified Client that certain complex returns involving residential credits, depreciation and other deductions will not be accepted by IRS on January 30, 2013 and IRS has not notified a date when it will accept the electronic filing.4) Client understands these facts however; it is willing to electronically file before these dates.5) Client hereby indemnifies Tax Preparer for any liabilities and consequences of filing before IRS is ready to accept.6) Tax Preparer will not be responsible for any delays, penalties or interest as a result of filing early an incomplete tax return.7) Client also agrees to pay Tax Preparer an additional sum of $50 to prepare amended tax returns if necessary to correct any errors as a result of early filing.8) This agreement is an addendum to the client service agreement if one is executed after this date for tax preparation services.These covenants are hereby mutually agreed.Tax Preparer Client (If MJF both spouses must sign)Date: Executed in the county of

Comprehensive, but how about a simple note attached to their copy which says "IRS has announced that returns cannot be filed before Jan 30, and refunds will be mailed sometime after that date.The IRS might also change the date. I can't predict what other changes they may make in the coming weeks."

Only $50 for an amended return? I'd say "There will be an additional fee for any amended returns, based on the amount of work involved."

[Guest Taxed]

Good point about simplicity. A para legal friend of mine told me that if a agreement looks "legalese", people tend to give it more credance than a simple 2 sentence note. You know attorneys have books with boiler plate legal language that they cut and paste to make individual agreements. It is like cooking a little bit of this and a little bit of that all thrown in the pot!

I know $50 is a pittance but I did not want to take advantage of these people who are really doing this because some colleges are putting the pressure to get 2012 return for financial aid.

[JohnH]

I disagree with you paralegal friend. I think most people don't pay any attention to legalese. They look at it, eyes glaze over, then they look at you and ask "what does this say?" You respond, "I have no idea when you're going to get your refund, but it definitely will be long after Jan 30." May as well just say that in writing to begin with.

Also, I think we tend to box ourselves in when we write in too much detail. It forces us to adhere to rigid policies or puts us in the position of having to explain why the policy doesn't apply in a particular situation. And if we have a client sign something they don't understand and then trot it out when they have questions, it generally upsets them. It doesn't bring clarity - rather it creates distance and decreases trust. Just my 2 cents worth. Your mileage may vary.

Same issue with the amended returns. I didn't say you shouldn't CHARGE $50 when the situation warrants it - I was just suggesting that you preserve some flexibility for yourself by not promising to only charge that amount.

[Guest Taxed]

All good points, perhaps it is the part of the country you operate that makes a difference. I have CT and NY clients are they are sticklers and want stuff in writing. Still waiting to get paid from a NY client for last season! Perhaps down south and midwest things are more laid back and you can generally work with a handshake and a 2 line agreement.

I hate to get into an agreements, but we must protect ourselves from unreasonable demands.

[JohnH]

You're right - it varies by area of the country and client particulars.

[jainen]

>>Tax Preparation Disclosure and Agreement Addendum<<

What's the point of this, either in legalese or a simple note? "Don't blame me" never helps anything. Just do your own job good and let the IRS do its job. Take a hint from the corporate marketing departments this year--focus on how you can benefit the client. Don't promise what you can't deliver, of course, but don't harp on the limitations. Especially don't whine about how hard this all is for YOU.

On the other hand, if you aren't already using a standard engagement letter, you do need that.