Tax Office Organization Ideas?

[Chowdahead]

I've been doing this since the 2003 Tax Year. I'm pretty organized. But in the madness during the peak tax season,and those very late nights of transmitting, I always seem to have someone fall through the cracks, in terms of not getting e-filed after the return is done. There is no worse feeling than to have a client call you weeks later and inquire as to why they haven't received their refund, and when you go check the program you realize that although the hardcopy was filed away, the electronic file was never e-filed. Doh! Or an e-file could be rejected by the IRS or ATX and never gets corrected and re-transmitted properly.

What type of system do you guys use to document that every return that was supposed to get e-filed, was transmitted and accepted, And every return that the customer was supposed to mail, was handed to the customer. Or if you are simply waiting for a customer to return with additional documents. What is your system? I figure I don't need to reinvent the wheel here, since there are probably plenty of good models to follow.

[HV Ken]

I use the status field on the Return Manager.

I have the following categories:

I rollover the return when I receive it, and enter the date in the status field. If I have several appointments that day, I will batch rollover first thing in the morning, but not put anything in the status field until I have the documents. Entering the date in the status field allows me to process them in a somewhat FIFO fashion.

Then there are the following status terms that are entered/updated after the item is done:

entered

need info (when entered and waiting for more info)

printed

assembled

mailed (for those that will not be picked up)

e-file / e-file;Chase (for Bank Products)

complete (and check the box; I do not move to complete until the e-file has been accepted

This is from memory as I am remote today, but I think this is all the stages I capture. I have never lost track of a return with this simple system!

[Lynn EA USTCP in Louisiana]

I use the status field on the Return Manager.

I have the following categories:

I rollover the return when I receive it, and enter the date in the status field. If I have several appointments that day, I will batch rollover first thing in the morning, but not put anything in the status field until I have the documents. Entering the date in the status field allows me to process them in a somewhat FIFO fashion.

Then there are the following status terms that are entered/updated after the item is done:

entered

need info (when entered and waiting for more info)

printed

assembled

mailed (for those that will not be picked up)

e-file / e-file;Chase (for Bank Products)

complete (and check the box; I do not move to complete until the e-file has been accepted

This is from memory as I am remote today, but I think this is all the stages I capture. I have never lost track of a return with this simple system!

Ken, which 'status field' are you talkng about? I have my program open and the only status field I see is on the e-file tab. The status field on the e-file tab is not modifiable by the user. What am I missing?

Thanks, Lynn Jacobs, EA

Kenner, LA

[Margaret CPA in OH]

This is in MAX. For efiling I don't create the efile until I have the 8879 signed and in hand. When I create and send, I check daily for acceptance after transmitting. When accepted I check the Complete box in Efile Manager. Then I print out the 9325 in the return, email or mail with any desired printed copies (most now are happy with just digital copies) and any local or state returns that must be mailed in. Only then do I check Complete on the Return Manager.

I also keep a log of when I received the engagement letter and the organizer/client data (sort of FIFO), the returns (Fed,State(s), Local, received 8879 if efiled, the date mailed out or emailed out, whether there are estimates to track, Billed/Paid and if other notes. It helps keep me on track and organized. To date, knock wood!!!!, I haven't experienced any "forgotten" returns.

Hopefully my good luck will continue through my "golden" years!

[Margaret CPA in OH]

Lynn, the status column is to the far right on the Return Manager.

Ken, do you just change the status "note" with each update or have a string of characters? I like your style! Did you drag the status column to the left to see on the screen more easily? I think I will try this along with my system. To have everything on the screen is helpful although my clerical person utilizes my "status" list, too - not so easy on the software screen.

[Lion EA]

I don't file (will change as I do more scanning into computer and less filing of paper in cabinets) until I have the signed 8879 or client has his mailing copy. Then, I keep the signed 8879s in a stack in constant view until I receive the email (from CCH?) for Federal acceptance which triggers me to check for state acceptance, since CT is about a day later than IRS. When everything's accepted for a return, I file its 8879. If an older 8879 is in my stack with newer ones being accepted, I know to go back in and make sure I actually efiled that return. I do get an email for a federal rejection also, so I know to correct and re-efile. I might not immediately file, but I would move to my to-be-filed box when I no longer have to track that return or 8879. From time to time, I print out a list of efiled returns and compare against my return manager, or have someone else compare to get a second set of eyes on it.

[michaelmars]

i do as Ken does but i have a few more columns [you can add many columns to the return manager] i track if a client is sent a draft and i track if authorization forms have been sent out. And to answer the other poster re columns, i move them to a logical order for my use. i also have a cloumn for notes ie, need a k-1, client called and has more info, client away-hold to mail, etc.

[Catherine]

I have a separate WIP Excel spreadsheet where I list every return with boxes to either check or enter dates of various stages. Using Excel also allows me to color-code an entire return -- I can open the spreadsheet and see at a glance how many returns are in the works, how many waiting for 8879's, how many need printing, or pickup, or whatever. I've refined it over several years and it's really helpful to me.

It's attached; perhaps it will help you. or someone else

Tax WIP blank.xls

[Randall]

I try to keep it as simple for me as possible. I don't enter the completed check mark until paper return is delivered to client or 8879 received, returned sent, and acceptance notice received for both Fed and State. I then add completed check mark. Print a paper list of uncompleted returns and keep a close watch on the list.

[JRS]

I have a separate WIP Excel spreadsheet where I list every return with boxes to either check or enter dates of various stages. Using Excel also allows me to color-code an entire return -- I can open the spreadsheet and see at a glance how many returns are in the works, how many waiting for 8879's, how many need printing, or pickup, or whatever. I've refined it over several years and it's really helpful to me.

It's attached; perhaps it will help you. or someone else

Thanks, it will definitely help stop the "falling through the cracks."

[mlinder42]

We do over 2200 returns all finished returns go into a file drawer marked new .Every morning first thing they are pulled and e-file status is checked.The rejects are fixed or called for more info,Accepted are put in accepted drawer any not e-filed are done by 8.30AM so we still have them back the same day.In 7 yrs of this system we have not had one slip thru the cracks.We do no mail returns except for those that will not e-file.

[grandmabee]

This is in MAX. For efiling I don't create the efile until I have the 8879 signed and in hand. When I create and send, I check daily for acceptance after transmitting. When accepted I check the Complete box in Efile Manager. Then I print out the 9325 in the return, email or mail with any desired printed copies (most now are happy with just digital copies) and any local or state returns that must be mailed in. Only then do I check Complete on the Return Manager.

I also keep a log of when I received the engagement letter and the organizer/client data (sort of FIFO), the returns (Fed,State(s), Local, received 8879 if efiled, the date mailed out or emailed out, whether there are estimates to track, Billed/Paid and if other notes. It helps keep me on track and organized. To date, knock wood!!!!, I haven't experienced any "forgotten" returns.

Hopefully my good luck will continue through my "golden" years!

But then the 8879 does not have the dcn numbers printed on the 8879. Do you hand write the number in?

[Pacun]

I get all signed 8879 in one place and I efile as I go. We are busy on the weekend so on Monday, I hand in all 8879 to my partner and I ask her to read the names and I check efile status. If accepted, a check mark with a highlighter goes to the 8879 and it is put on a pile. If not accepted or not transmitted, it put on another pile. If I do not see on e-file I put it on another pile and work on those returns immediately after we check them all.

We put the checked 8879 on a pile on a different drawer. Next week, my partner will check the refund status on the IRS and state websites and make a note. After that, the 8879s are moved to the finito filing cabinet. When a client calls, we go to the finished returns and tell them when the refund will be received or if there is a delay on the return. We do that every Monday and if I forgot to efile one, no problem because Wednesday is the deadline for efiling.

I efile EVERYTHING that I can. I do not charge extra for efiling since I save paper, toner, printer and time.

[Margaret CPA in OH]

I create the efile before sending as a pdf for approval (or showing to the client). That way I catch any errors prior to submission. The client signs the 8879 which has the DCN and faxes, scans and emails or sends back to me (or signs here). The DCN is also on the 9325 which I send to the client as confirmation of receipt and acceptance.

[Catherine]

I create the efile before sending as a pdf for approval (or showing to the client). That way I catch any errors prior to submission. The client signs the 8879 which has the DCN and faxes, scans and emails or sends back to me (or signs here). The DCN is also on the 9325 which I send to the client as confirmation of receipt and acceptance.

The 9325 doesn't include state e-file information, though. And the Massachusetts M-9325 is just boilerplate; it also does not update with e-file status. What I do is print out the e-file acknowledgment history, Federal and state, for the client, and mail that instead.

[JohnH]

My system is slightly different.

I print the return and drop it in the mail to the client with their invoice. It's up to the client to sign the return and mail it in to the IRS and state - not my responsibility. If I don't get my check within a couple of weeks or so, I call or email the client and tell them I'm calling to verify that they received the return and mailed it in. (And to ask "where's my check?")

[Lion EA]

I use the email from CCH that appears to be from the IRS acknowledging receipt. I forward it to the client with a personal note summing up the IRS info and adding the state(s) info and including anything I want them to remember:

"Your federal income tax return was accepted by the IRS on 14 October 2009 as explained in the forward below. Your CT income tax return was accepted on 15 October 2009, but CT does not send out a separate acknowledgment.

Give me a call after you return to CT so you can pick up your file copies.

Please remember that you can contact me at any time with questions or concerns."

[Margaret CPA in OH]

Lion, how is that you get such emails from CCH? I've never received one. Is this some option you chose? If so, where? I am intrigued!

[Lion EA]

I think it's a choice in Office Manager for ProSystem fx. I ask them to send the email to me and not to my client directly who would be overwhelmed by the boilerplate stuff. If I have an email address for that client, I forward it as above. More personal than Form 9325. But, I like it mainly as a reminder to check for efile acknowledgments, especially from the states, and as an excuse to write to the client. If I have any reminders, such as funding their IRA or contacting me about how their college student should fill out his CT-W2 or whatever, I include that in my personal message at the top of the forward. Here's what arrives in my mailbox:

-----Original Message-----

From: [email protected]

To: [email protected]

Date: 13 Oct 2009 11:10:02 -0500

Subject: 2008 Electronic Return Accepted by the IRS

CLIENT NAME IS HERE,

You are receiving this e-mail on behalf of DOLLARS & SENSE, LLC.Your electronically filed federal income tax return for tax year 2008 was accepted by the IRS on 10/13/2009.

Your return was sent to the Andover Service Center.

Your Declaration Control Number is 000-63282-00110-9 .

Your return was accepted using a PIN. (You entered a PIN or authorized the preparer to enter a PIN for you.

PLEASE DO NOT SEND A PAPER COPY OF YOUR RETURN TO THE IRS. IF YOU DO, IT WILL DELAY THE PROCESSING OF THE RETURN.

IF YOU NEED TO MAKE A CHANGE TO YOUR RETURN:

If you need to make a change or correct the return you filed electronically, you should send a Form 1040X, Amended U.S. Individual Income Tax Return, to the IRS submission processing center that processes paper returns for your area. The address is available at www.irs.gov, or you can call the IRS toll-free at 1-800-829-1040.

IF YOU NEED TO ASK ABOUT YOUR REFUND:

The IRS will notify your Electronic Return Originator (ERO) when they accept your return, usually within 48 hours. If your return wasn't accepted, the IRS will notify your ERO of the reasons for rejection. If it has been more than three weeks since the IRS accepted your return and you have not received your refund, go to www.irs.gov and click on "Where's My Refund". Exception: please allow 4 to 6 weeks for processing of conditionally accepted returns. Also, you can call the IRS toll-free TeleTax return information number, 1-800-829-4477, to check the status of your refund. You will need to know the first social security number shown on your return, your filing status, and the exact amount of the refund you expect. TeleTax should give you the date for mailing or depositing your refund. You should receive your refund check within 30 days of the date given by TeleTax, or within one week of that date if you chose direct deposit. If you don't receive it by then, or if Tele-Tax does not give your refund information, call the Refund Hotline at 1-800-829-1954. The IRS uses refunds to cover overdue taxes and notifies you when this occurs. The Financial Management Service (FMS) offsets refunds through the Treasury Offset Program (TOP) to cover past due child support, federal agency non-tax debts such as student loans and state income tax obligations. FMS sends you an offset notice if it applies your refund or part of your refund to non-tax debts. If you have questions about the offset, contact the agency identified in the notice. You may also call the Treasury Offset Program Call Center at 1-800-304-3107, if you have additional questions.

IF YOU OWE TAX:

If your e-filed return has a balance due, you must pay the amount you owe by the prescribed due date. If you paid by electronic funds withdrawal (direct debit) or by credit card while e-filing your return, no voucher is needed. To use your credit card to pay by phone or Internet, you may call, toll free, 1-888-PAY-1040 (1-888-729-1040) or 1-800-2PAY-TAX (1-800-272-9829), or visit www.PAY1040.com or www.officialpayments.com. You may use a VISA® card, American Express® Card, Discover Card® or MasterCard® card. The service providers, based on the amount you are paying, will charge a convenience fee. The fees may vary between providers. You will be told the amount of the fee during the transaction and you will be given the option to continue or end the transaction. To learn more about credit or debit card payment options, visit www.irs.gov keyword e-pay.

If you are not paying electronically, you may use the Form 1040-V, payment voucher. You will receive the payment voucher in the mail or you can obtain a payment voucher from your electronic filer. If the IRS doesn't receive your payment by the prescribed due date, you will receive a notice that requests full payment of the tax due, plus penalties and interest. If you can't pay the amount in full, please complete Form 9465, Installment Agreement Request. To obtain a paper Form 9465, you may call 1-800-829-3676 or visit www.irs.gov. Mail the paper form to the address in the form's instructions.

IF YOU NEED TO INQUIRE ABOUT YOUR ELECTRONIC FUNDS WITHDRAWAL PAYMENT:

You can call 1-888-353-4537, toll-free, to inquire about the status of an electronic funds withdrawal payment. If there is a change to the bank account information included on your return, you should call this number to cancel a scheduled payment. You will need the social security number of the first person listed on the tax return, the payment amount and the bank account number. Cancellation requests must be received no later than 8:00 p.m. Eastern Time, two business days prior to the scheduled payment date.

REFUND ANTICIPATION LOANS:

A refund anticipation loan is a loan made to you based on the refund you expect to receive. This loan is a contract between you and a lender. The IRS is not involved in this contract, can't grant or deny the loan, and can't answer any questions about it. If you have any questions about a refund anticipation loan, contact your electronic filer or the lender.

PLEASE DO NOT REPLY TO THIS E-MAIL.

E-Mail was generated automatically from your request to be notified by e-mail rather than by postcard and is not monitored for incoming e-mail traffic. If you need assistance or have a question, please contact CCH Tax Support at 1-800-739-9998. Thank you.

[elfling]

Our system is similar to that of mlinder42.

Each client has a manila folder which typically rests in the main office file cabinet. Those files are pulled when the client comes in or drops off return information. We have a set of racks, each a different color and labeled, on a shelf on one of the office walls. Files move, in alphabetical order, to the proper rack as we go. Depending on the situation, a folder may have rested at various times in one, two, or even all three racks during a filing season.

"Ready to go" is where returns that are complete and packaged wait for clients to pick up. Client gets a phone call as the folder hits that rack. "Unsigned" is the station where files wait for 8879s to come in regardless of how they are coming ~ email, fax, snail mail, or drop off. "Transmitted" holds those that have been efiled (which only happens once the 8879s are here!) awaiting an accepted designation. That group becomes the most crucial. By pulling those files each morning and each evening we track which are complete and which are not. Completed files are given a check mark in the efile manager and the folder goes back to the file cabinet. So far this methodology has not resulted any returns being missed.

As I type this it becomes obvious that our folders are handled quite a few times during a tax season , but the system works.

[Catherine]

<snip> We have a set of racks, each a different color and labeled, on a shelf on one of the office walls. Files move, in alphabetical order, to the proper rack as we go. Depending on the situation, a folder may have rested at various times in one, two, or even all three racks during a filing season.

<snip>

We aren't allowed to do any of that in Massachusetts. All client folders must now be kept in LOCKED cabinets at all times unless they are actively in use. It's really, really, REALLY annoying.

[Margaret CPA in OH]

Elfling, the question posed to me was how does the DCN get on the 8879 before client signs, whether I handwrite it in. I explained that I create the efile to check for errors which might prevent efiling prior to providing the 8879 for signature. Does that mirror your sequence? I don't use so many folders, etc. but am sure I have far fewer clients and there is just me.