CUT OFF

[TAXMAN]

Anybody got a cut off date yet? We have about 125 more comming in. No way to get these done. Just wondering what your policy may be?

[JohnH]

If you mean cutoff date for extensions, mine was over a week ago.

[RitaB]

Today I started working on returns that were brought in on 3/12, so I suspect that I will get to everybody that drops off next week. I don't have a set cut off date. I don't work any harder as the "end" approaches. I like getting extensions and try to reassure clients that it's not the end of the world. And if it is the end of the world to them, oh well, goodbye. April 15 is a pretty laid back day for me.

[NECPA in NEBRASKA]

My cutoff was 3/17. I put it in my letter and must have frightened my client's to death. Almost everything was in before that. I am still waiting on a few K-1s, but at least now I can work and know what I have to do.

[RitaB]

This may not make sense, but I don't WANT everything to be in by March 15, or March 20, or April 1. I'm afraid the 60 or so extension clients WOULD get their stuff in by the cutoff, and then I'm obligated to get their returns done. Right? Well, I can't. I do all I can already; it would put me in a bind to have a bunch more stacks laying around, and if the clients met the cutoff, they would expect me to do the same. I don't want to impose that on myself. Just throwing that out there. Your mileage may vary.

[NECPA in NEBRASKA]

I wish that I didn't fell like I have to give them a deadline, but I've learned from the past that if I don't have a firm cutoff in advance, that they will push me to the very last minute and then still expect it done. For the most part, my extension clients will always be on extension, because they refuse to file in April. Since the season started so late last year, I had more extensions than ever.

[pikester1967]

Any work in after March 25th is always put on extension at my office.

Some work I may get done by the 15th, the others well that's the purpose of the extension.

[Lion EA]

I look at my stacks every year. This year with Congress' sequester delaying the start of tax season, my stacks were growing by 1 March and I considered telling everyone who came in that they were going on extension, just in case. But, I seemed to be on track, so I didn't call it then. Well, at least 20 returns, including businesses, multi-state, 1099-Bs with hundreds of pages, etc., all dropped off over the next seven days. I let it go through the weekend of the 15th and then started saying Extension. One is arguing with me as she was already on an installment plan before she came to me a couple of years ago and thinks she needs to file by 15 April (I think she can file an extension, but have been pushing to get hers done each year). I feel overwhelmed but will probably finish those I promised but still have enough extensions to keep money rolling in through 15 October. Waiting until after St. Paddy's Day was probably a mistake, though. So, next year it's probably 15 March or earlier for sure.

I also don't publish my cut off in advance. If people ask, I say prior to 1 March is great and prior to 15 March with everything turned in is probably doable and after 15 March is almost always an extension. I guess when people turn their calendar page and realize it's March, they suddenly think they better drop off their tax materials. But, if K-1s or their biz expenses or corrected broker statements are still dribbling in -- I date their folders when I receive the LAST piece of information.

[RitaB]

I also don't publish my cut off in advance... I date their folders when I receive the LAST piece of information.

Right, me too. There is never a time from the last week of January on, that I am sitting around wishing people would drop off their stuff. I'm two weeks behind from about day 1. So I don't tell people get it in by x, because it wouldn't matter if they did.

And, yeah, you're not in line until I have everything. You know the guy whose casket I'm taping together from banker's boxes? He just THINKS he brought his stuff Feb 28. I'm still waiting on stuff from him on 3/22. There's no date on his folder yet. I do have the right number of bankers' boxes, however.

[Richcpaman]

I put in the Engagement Letter, March 29th.

After that, no promises for a April 15th completion.

Rich

[Carolbeck]

This may not make sense, but I don't WANT everything to be in by March 15, or March 20, or April 1. I'm afraid the 60 or so extension clients WOULD get their stuff in by the cutoff, and then I'm obligated to get their returns done. Right? Well, I can't. I do all I can already; it would put me in a bind to have a bunch more stacks laying around, and if the clients met the cutoff, they would expect me to do the same. I don't want to impose that on myself. Just throwing that out there. Your mileage may vary.

The only time I have set a deadline was when I was pregnant with my youngest as was due on April 15th. I knew if I did not set a cut off date, I would be still receiving return info on April 14th. I set a cut off date of March 20th as I could be in labor at any time. Almost all complied, had a few that went to extension. I had 1 Irate client that dropped off tax info (with my husband) on April 14th wanting to have return done and at least an extension filed and why was I not there. I had given birth that day via Csec and still in the hospital.

Mind you I put this in my Annual letter that year and called all my stragglers. Unbelievable!

[jasdlm]

I'm weird. I really do not like extensions. My clients are gracious and allow me to put my legal and financial management business 'on hold' for about 6 weeks (unless there are emergencies or court dates, of course), and I don't like having to do returns after the 15th. I push people (have staff start calling right after corporate returns are due), and I try to get everything I can out the door. Right now I have 150 here and 49 left to come in. I have another 30 people I won't see anything from, but they will call me on 15 April to make sure I filed their extensions. I hope these 30 are the only extensions.

Last year, I felt very tired toward the end of the season, and I did put a few on extension because I didn't want to make mistakes. I know that might happen again, but right now I still have energy, so I'm feeling overly ambitious.

[Catherine]

My letter says I will finish by 4/15 IF and ONLY IF I have every single piece of required information in-house by 3/20.

No one EVER brings me every piece the first time; they always forget something. But every year I get people dropping off to get their spot in the queue.

I do what I can and if they kvetch I point to the letter and say"everything means everything -- you were missing A, B, C and Q -- extension." No one has yet left in a huff -- and if they did my response would be "here's your hat and don't stumble on the way out." I have easier ways to hurt myself than half-killing myself to finish returns dropped off piece-meal.

[JohnH]

I don't guarantee any completion dates. I don't announce my cutoff date in advance in my client letter. The only thing my client letter says about extensions is that anyone with a brokerage statement can expect to go on extension - no matter when they get their info to me. Some do, while with others I feel comfortable enough with the numbers to go ahead an compete the return. But I put them all on notice as a precaution because I can't predict how flaky their brokerage will be in January of any given year.

I set my cutoff date based on how the tax season is progressing. In some cases it is as late as March 20, in other cases it is March 15 or even March 10 Most who get all their info to me before my cutoff date get their returns completed, but in some cases I've doubled back and told some of them we need to extend. Some people whose habits I know get extended well before my cutoff date, because I know they won't have everything to me in time - may as well deal with it at the outset and keep them & me relaxed. I filed my first one this year on March 4.

Everyone whose info comes in after the cutoff date automatically goes on extension. By doing that I'm usually very productive in the weeks running up to Apr 15 because I'm not making frantic calls pleading with them to let me extend their return as the date looms. Having the extensions in place allows me to actually keep working, and many of the extended returns are finished by or before Apr 15. (No harm, no foul for an extension which was filed unnecessarily).

I don't do anything on the actual date of Apr 15 except review extensions & go home early. (Sometimes I'll prepare one or two just to amuse myself, but that's unpredictable and irrelevant) April 15 is an artificial date which people impose upon themselves because they don't understand how flexible the rules really are. For them, the Apr 15 song & dance is some sort of silly game they like to play, and they want their tax preparer to play it with them. Maybe it makes them feel special and makes the preparer feel especially needed.

I'm moving toward retirement and some things I just don't give a hoot about. Clients who don't plan ahead just aren't my problem. This is just how I operate - your mileage may vary if you try it.

One thing I have learned over the years is that many clients are kind and considerate, but many more of them will work you till all hours of the day & night and will create all sorts of anxiety if you let them They don't intend to drive you to an early grave or stress-related illness, but that's what they will do if you allow them. So at some point each tax preparer must decide whether they are going to run their practice or are they going to let their clients dictate how they operate. I've found it's much easier on the blood pressure to run my practice myself. For those clients who don't like how I operate, they can find some stressed out, sleep deprived martyr down the street - there seem to be plenty of them.

[RitaB]

For those clients who don't like how I operate, they can find some stressed out, sleep deprived martyr down the street - there seem to be plenty of them.

I know exactly what you are saying. And I think most preparers in my town feel this way, too. For that reason, when I say to that person coming in the door on April 3, "Hey, I doubt I can get your return done, but I'll get an extension for you and do it in the order it was received," they look at me, and say, "Ok, no problem."

No kidding.

I had one client four or five years ago who didn't like that. They took their return to HRB. Came back to me the next year and have been with me ever since. They are late as usual. They will get an extension as usual. I won't stress about them one bit. There is something pretty great about NOT letting a client run your life.

[joanmcq]

My official cutoff was March 20, and those clients I've seen since (like the couple that just came in) are just told, you're likely to go on extension. A few with very complex issues, or whose S-corps are already on extension, have been told they're being extended. I make sure they don't owe, and that's about it. Now that I have an assistant doing the initial keying, I can glance at the return, maybe add some estimated from PY numbers and send 'em off.

No stress on the 15th is what I strive towards.

[Lion EA]

Just had an email from a client who dropped off over a week ago (actually, uploaded to FileShare on my web site) saying he's gone March 12-16. After reading it twice, I realized he meant April and emailed him that he's going on extension. I told him "just in case," but I wouldn't have gotten to him until really close to 15 April, so it's definite in my mind.

He's elderly and prepared his own returns in the days of a 15 March deadline. I'm elderly and don't even know what year it is while preparing 2013 returns! I had to look up today's date to put it on a doctor's form, so it took me a couple readings of his email before I realized that the dates he wrote are already gone and what he actually meant.

I napped and goofed off all of yesterday, well church and lunch with hubby and a load of laundry as well as the nap and some TV, so am a couple of returns behind where I want to be right now. I may spend 1 April transmitting extensions to relieve some pressure.

[JohnH]

Sounds like a good use of Apr 1 in my opinion - transmitting extensions.

BTW, in an earlier post you mentioned a client who is on an installment agreement and is afraid the IA will be voided if she files an extension. She doesn't need to worry about that insofar as her Federal return is concerned. The extension will be valid and there will be no effect on the IA (unless she files an actual return with a balance due and fails to pay it).

I have a charity case who has been on installment agreements for going on 4 years now. Each year we file an extension request showing tax due and only a token payment. The extension is valid. When the return is filed in Oct without full payment, IRS will eventually void the installment agreement. They then have to reset the installment agreement and fold the new balance into the existing balance, but IRS will even do that - they just have to pay the fee. It's an expensive way to borrow money, but in this case it's necessary as they wind down the effects of a financial fraud which was perpetuated against them.

[mcb39]

I know exactly what you are saying. And I think most preparers in my town feel this way, too. For that reason, when I say to that person coming in the door on April 3, "Hey, I doubt I can get your return done, but I'll get an extension for you and do it in the order it was received," they look at me, and say, "Ok, no problem."

No kidding.

I had one client four or five years ago who didn't like that. They took their return to HRB. Came back to me the next year and have been with me ever since. They are late as usual. They will get an extension as usual. I won't stress about them one bit. There is something pretty great about NOT letting a client run your life.

I agree with Rita. I don't have a cutoff date. I do as much as I can and don't push my endurance any more than I have to. Hubby told me yesterday that I look worried all the time, so I guess that I need to lighten up. I prepare them in the order in which they came in with a very few exceptions. There are situations, and there are situations. Just because they send me all their stuff from Arizona or Texas does not mean that they get priority. They play while I work. Well, guess what, this year I am taking them one at a time and any and all are welcome to find a better fit. None of them seem to want to.

[kcjenkins]

Uncomfortable truth?

[JohnH]

I think this is why I got my standing desk...

[Lion EA]

Yeah, the newish client on IA, I tell her each year we can extend. I have another who'd been on IA also before coming to me, and we extend every year; she then contacts IRS after filing to combine balances due just like John said. First gal is a worried, type A and was referred by other good clients, so I've pushed hers up a bit each year. This year, I had a bunch drop off right before her. I'll work through those that beat her by a week and then work on hers IF everything is in her folder. But, next year, I'm telling her what my rush fee is and letting her decide whether to pay extra or extend.

[GeneInAlabama]

Took me a minute to catch on to what was being said. I'd better be careful who I kick.

[JohnH]

Just had a perennial extender drop in.

He said his wife told him to ask how late they can get their info to me and still get the return done by Apr 15.

Was it OK for me to tell him to crank up his time machine and get it to me by Mar 10, or was that:

1) unkind ?

2) snarky ?

3) uncalled for ?

4) other...

[Lynn EA USTCP in Louisiana]

well, it depends on what tone of voice you use when telling the client to crank up their time machine. If you can say it with a smile on your face and enthusiasm in your voice then it's ok in my book.