Extensions

[TAXMAN]

OK just wondering. What might be your extension numbers. I got about 100 in partial stages. Do you rough up to see if they owe $? It seems to me putting all that work in a rough up I may as well finish it except it takes time away from my older ones with nasty problems in them. Your take on this.

[NECPA in NEBRASKA]

I know that I have to rough up the ones that I put on extension. I normally overestimate and have their extension payment be large enough to cover their first quarter estimate. I know that it's a pain, but I add up what I can and throw the numbers on the returns as estimates.  Most of my extensions will be for S Corp shareholders and partners. Most of them are just too big for me to get done by April, and after I explained that I would rather spend more time and get them done correctly, they have all agreed. If the people are just late, then I will normally go from the last year's return if they haven't brought in their information. 

[MAMalody]

Unless it is a new client, last year is a good indicator. Usually the only adjustment you need to make is if they made any ES payments.

[Possi]

I usually have a lot of new clients coming in at the last of the season. My established clients aren't afraid of an extension, aren't offended, so I extend the ones I can. If they are big returns, I absolutely extend after Mar 31. I have made errors in the past trying to make everyone happy. I've learned it is best if I am happy. So, I try to flip the new clients out quickly because if I WOW one new client, they will tell 5 people. If I make a mistake and tick off a client, they will tell 10.

I also tell my clients that I want all my extensions done before May 1. I travel and I don't want this business to own me.

I'll do about 500 this year, and with all these late clients, it's a struggle to stay happy some days. Most of them are waiting for the 1095 forms. Great, huh? I have about 100 coming in before deadline. No exaggeration.

I have to say though, I do love my gig, and I LOVE my clients. If I didn't, I'd be outta here.

[Catherine]

I do my best with extensions -- but I also figure that if they bring me info late, it's NOT my problem if they should make a payment and don't.  I'm not going to delay someone who brought their paperwork in earlier, in order to calculate extension payments for latecomers.  If they generally owe, I give them a payment coupon to mail in.  Especially this year, I won't bother chasing people down for signed 8878's just to send a direct debit extension payment.  I'm going to have more extensions than ever and it's just too much.  At this point they should be glad I'm here and not on a beach in Belize.

[RitaB]

4 hours ago, Possi said:

...if I WOW one new client, they will tell 5 people. If I make a mistake and tick off a client, they will tell 10.

Accurate.  Bad news travels at least twice as fast as good.