Record number of extensions

[JJStephens]

Record number (40) for the fourth year in a row. And that despite the fact I'm about 10 ahead of where I was on deadline eve last year. I'll probably knock out a handful more before the clock tolls midnight tomorrow, but it'll still beat last year's record.

Don't you just love those folks who email on the day before saying "I'll try to get my stuff to you later today. You might have to do an extension if you're not able to get to it." Ya THINK?!?!?

I have about ten clients I file extensions the first time I open my software in January. One of them shocked me this year--got all his stuff in by early March. Most of them barely make the extended deadline despite my pleas all summer to get their materials to me. All summer, they promise they won't wait till the last minute. Then on October 13 I get an "Oops, I did it again" e-note. I'd fire them but a couple are among my closest friends and one is my daughter. Deep sigh.

[Catherine]

8 minutes ago, JJStephens said:

I have about ten clients I file extensions the first time I open my software in January.

We have a similar list - we don't put them on extension until we submit all extensions the first week of April. But we know who they are and that they'll call or email in a panic late tomorrow afternoon apologizing for being late and asking us to put them on extension.  Same folks every blessed year.

[GLJEANNE]

I have one like that, doesn't get me his stuff until April and it's always a Quickbooks mess that requires lots of back and forth with his bookkeepers.  This year I'm trying to have all my extension done by 4/30, so when I saw the QB guy's mess, I told him that I'd put him on extension with a super rough estimate of what he should pay, but then he should find someone else to actually file for him, because I just know that would drag on into June.  Too bad, he's a nice guy, but it's the same thing every damn year.
Otherwise I have one person waiting on a trust K1 that will probably be in May, and that's it!!  On to the 941s and 990s...

[mcbreck]

I'm usually done with taxes except 2-3 pickups on the final day. I've got 18 people who are coming in tomorrow. I've had 5-6 in the past week who've had rejected efiles because of their exchange healthcare when they've never had it before (adds a twist). I'm also at significantly higher extensions. People just can't get their act together to get me basic information.

[Robbie]

Last year, as I am approaching complete retirement, I "retired" my extension clients.  Same story, they waited until October to get their papers to me despite me contacting them and advising them that I needed to be finished by Sept 20 as my daughter was visiting for the first time since Covid changed everybody's lives.  My daughter arrived and I was still processing returns on the last filing date.  

This year I noticed some of my "timely" filers were much later than usual.  There was illness to blame for some of that, but I do believe that the community is still suffering effects from the last three years of living with covid.  They just seem to be functioning differently.  

That said, reducing my work load so that I am finished by April 18th is great.  I have a couple of returns that need a K1, but no voluntary procrastinators. 

[jklcpa]

I'm with Robbie about trying to finish by the April filing deadline.  My workload has diminished with clients' business retirements and a few moving away, and because I'd hardly been able to take on new work with the increasing demands of mom's care over the last 5 years.  I worked long and odd hours to complete all but one client. That one person is always late and involves a personal, 2 partnerships, and a fiscal year C corp that is now late beyond its expired extension.  *sigh* some are never able to be trained or changed.  

[kathyc2]

I've also scaled back and had pretty much a stress free season. Each year I go to Costco and get a bag of Lindt truffles and a big bottle of Bailey's. Still quite a bit left in each, so I know it's been stress free. 

I don't like extending, but this year I have four clients that haven't received K'1's yet, so I had no choice.

On the final day I was actually out mowing the lawn!

[BrewOne]

On March 15, I sent out an email to everyone who had not been in contact, something to the effect of a two week notice unless due to circumstances beyond your control--and I wanted to hear what that was.  Had a very good response actually.

But like so many of us, I'm sunsetting my business.  Probably the next big tax legislation convulsion will do it for me.

[Catherine]

My welcome letter, sent in January, states that every return not ready to be filed (i.e., just waiting for signature pages) will be put on extension as of April (I forget; something early, like the 3rd or the 8th). I'm still getting people emailing and calling asking if they are on extension. Each of their bills just went up for being nincompoops. 

Oh, and an early-season inquiry who now wants me to look at her self-done return. They owe a bundle, so it can't be right. I won't even answer her for a week. If then.

One of the reasons I put in extensions early is it means I don't get cranked up about all the ninnies calling and emailing with lame, stupid, and wrong-time questions in the last few days as they all start to panic. If I was desperate to finish returns and extensions they'd annoy me far more. I expect to get a lot of returns finalized in this next week, because the interruptions will slow way down and I can chase down final details and do final reviews without undergoing constant interruption. 

[JJStephens]

One of my chronic procrastinators called this afternoon 'to give me the good news' that I would not need to rush her daughter's return out this evening since she was still waiting on a W2 to replace the one they lost. This woman is a big time realtor who frequently complains about her clients dragging their feet on getting what is need to complete a house purchase. It is completely lost on her that every year she shows up at the last minute wanting me to pop everything out and every year we do an extension. She tells me the problem is she doesn't do forms very well--this from a realtor!

I wrapped up a return earlier today and went to upload it to the portal only to discover the client had uploaded several additional W2S and other material late last night. That noise you heard mid-morning was me screaming!

Once I got past that, I actually had a reasonably calm day. Still waiting on a couple 8879s and then I'm done.

[RitaB]

On 4/17/2023 at 12:56 PM, GLJEANNE said:

I have one like that, doesn't get me his stuff until April and it's always a Quickbooks mess that requires lots of back and forth with his bookkeepers.  This year I'm trying to have all my extension done by 4/30, so when I saw the QB guy's mess, I told him that I'd put him on extension with a super rough estimate of what he should pay, but then he should find someone else to actually file for him, because I just know that would drag on into June.  Too bad, he's a nice guy, but it's the same thing every damn year.
Otherwise I have one person waiting on a trust K1 that will probably be in May, and that's it!!  On to the 941s and 990s...

I have two Sch C folks whose QB reports were worse to me than if they had brought a shoe box.  I finally created a fill-in-the-blank organizer for them two years ago.  They both act like I'm a rocket surgeon, and it's a pleasure (sort of) to prepare their returns now.  Yep.  I just entered the categories off Sch C, added a bunch of lines for assets purchased, date, cost.  Assets sold, date, proceeds.  And a separate page for vehicle information.  People who don't understand accounting create trainwrecks with software.  It's true.  I give those organizers to virtually every business owner now; amazing that they think they're so helpful, and it's just putting the lines from the tax return on anything besides a tax return.  

[Abby Normal]

I hate doing tax returns without reconciled bank statements and balanced books. There's close to zero chance that the return is correct.

[Catherine]

10 minutes ago, Abby Normal said:

I hate doing tax returns without reconciled bank statements and balanced books.

Had a client years ago, business in operation for years. Had not reconciled (multiple) checking accounts in over four years. First thing I did was get those caught up. Another consulting client called me in to troubleshoot reports not giving good information. Two issues: COA had location coding but the codes were jumbled, and they had not closed monthly books in three years. That software only pulls report data from closed months....

You gotta wonder sometimes. First company I almost understand; they downloaded all bank info directly to QB, thinking that meant they had it all (nope!). But with the other the guy who called me in was CFO with a Master's in Accounting. I've never taken an accounting course (taught it in a junior college for a couple of semesters, but never took a class myself), and I saw the key problems as soon as I saw the COA. He never thought to look at it. Never looked at the help files for the tres-fancy and tres-expensive accounting system. Huh?

[Abby Normal]

Yeah, I've seen some over the years. The ones I hate are the ones that keep adding new accounts. I had one that set up new accounts with the year in the name. Serioulsy? We already have dates in the general ledger.

[Margaret CPA in OH]

From RitaB:

I have two Sch C folks whose QB reports were worse to me than if they had brought a shoe box.  I finally created a fill-in-the-blank organizer for them two years ago.  They both act like I'm a rocket surgeon, and it's a pleasure (sort of) to prepare their returns now.  Yep.  I just entered the categories off Sch C, added a bunch of lines for assets purchased, date, cost.  Assets sold, date, proceeds.  And a separate page for vehicle information.  People who don't understand accounting create trainwrecks with software.  It's true.  I give those organizers to virtually every business owner now; amazing that they think they're so helpful, and it's just putting the lines from the tax return on anything besides a tax return. 

For several years I have been providing the organizer sheets from ATX that sound just like your worksheets.  I think it's also helpful as it shows Prior Year amounts.  Some folks fill in the amounts but I also check the backup numbers.  Some folks don't bother but can easily see the comparison with prior year figures in more detail than the Two Year Comparison may not convey.

[Abby Normal]

The one account that always makes me facepalm is 'Reimbursements.' "We were just reimbursing our employees for things."

[JJStephens]

That and the credit card payment 'expense' account.

Every year I have at least one person who wants to deduct owner draws on their Sch C.

A couple weeks ago I had a long time client (who should...and probably does...know better) tell me his cousin's neighbor's ex-boyfriend (or something like that) is an accountant and told him as long as he puts gas and fast food and a variety of other things on his business debit card, he can deduct them on his tax return.

[RitaB]

2 hours ago, Abby Normal said:

The one account that always makes me facepalm is 'Reimbursements.' "We were just reimbursing our employees for things."

Reminds me of one who couldn't figure out why they had a profit:  "We just make enough to pay our bills."

[BrewOne]

My all-time favorite--client gives me a self-created spreadsheet to do her (new) sole proprietorship--on one line near the bottom of every month was a decent sized amount entered as an expense.  I asked her what were the entries on this particular line and she casually responded, "Oh, that's negative cash flow."

[Catherine]

Had a client some years ago with a truly lazy (and incompetent) bookkeeper. Could not be bothered to enter the credit card purchases, and "reconciled" the statement monthly by posting everything to "Reconciliation Discrepancies."  Yep,  you read that right. First year I looked at had over $76,000 in "reconciliation discrepancies!"

That one was truly spectacular. It was a vet clinic, and those "discrepancies" were all the exam room supplies, all the office supplies, all the in-house meds, all the gloves and absorbent pads and disposables and sutures and syringes and everything else. Toner and paper and postage and coffee for the coffee room and waiting room supplies. It was epic.

[Jim Oh Bkkr]

One Quickbook (payroll) client, has some employees "local w/h" as a reduction of wages - others as a deduction.  And while she's not the smartest person, she is pretty savvy.  (Makes me wonder how easy setup is.)

Another, years ago, brought in her books for a lawn mower repair shop.  100k income, 100k A/R, (50K) bank balance.  A... Houston, we have a problem.

[RitaB]

23 hours ago, Abby Normal said:

I hate doing tax returns without reconciled bank statements and balanced books. There's close to zero chance that the return is correct.

Also hate doing the books for people who think running it thru the bank account converts a personal expense to a business expense.  

[JohnH]

39 minutes ago, RitaB said:

Also hate doing the books for people who think running it thru the bank account converts a personal expense to a business expense.  

Everybody should know by now that running it through the bank account isn’t right.  The only proper way to convert a personal expense to a business expense is to charge it to a company credit card.