Another Rant - Short Tax Season

[Corduroy Frog]

We have from Jan 1 to April 15th, right?  But we all know the "rest of the story."

A few years ago, IRS moved the due date up to March 15 for almost all "entities."  Most of us consider March 15th more stressful than those due on April 15th.

An increasing number of taxpayers are investing in securities, and those issuers do not issue 1099DIV and 1099B until February 18th.  That takes away the entire month of February from our opportunity.

Tax preparers such as we do not have a multi-million dollar lobbyist working to change things.  Our only hope is that the IRS becomes strangled with these short deadlines.  They won't make an issue unless they can make a case for more revenue.

 

[Randall]

I've never been bothered by the March 15 due date.  I just extend those.  Most of my clients who have pass thru entities are usually just one or two owners and I also do their personal returns.  So I think of April 15 due dates for them.  And those who are later, just get extensions.  It's usually the same ones done by April or on extension.  For the brokerage accounts, they are even later than Feb 15 gettting their consolidated 1099s to clients.  I try to get the returns done by April 15 but there are some who are on extension.  My big complaint is with clients who have umteen brokerage accounts.

[Patrick Michael]

My tax season "ends" on March 25th. That's the deadline for clients to send me all their information so I can guarantee they will be done by April 15th. That gives me about three weeks to catch up.  The stress of getting the procrastinators' returns done is gone.  I don't do many entity returns and they are usually happy to go on extension to give them more time to get the books in order.  

[Catherine]

While I understand the desire to be DONE on April 15th, I also don't want to work myself to the bone three months of the year. I use extensions extensively (intended doubling up) and work steadily while still taking Sundays off all season. 

Do what works for you, but remember that extensions are your very good friend. I'd rather put a client on extension and do the returns correctly the first time, than rush to finish and find an error - or get a corrected consolidated 1099 - months later that makes an amended return required.

[schirallicpa]

My daughter is expecting her first child in June so I agreed to host a baby shower at my house on the 12th of April.  Don't know what I was thinking!  But - it is what it is and I will try to be done with most returns by then. 

[Lion EA]

What Catherine said. Plus I can make more money, and save my health & sanity, by working 11 months instead of 3 months. I actively encourage extensions. My 1st year on my own, I even gave a small discount for those, a bit like an overbooked flight. It helped me that year and going forward as I then had a core of clients who realize an extension is NOT a bad thing.

Unfortunately, my biggest client is an S-corp who adamantly, passionately refuses extensions, plus I have to have their Forms K-1 in the hands of their personal preparer by that firm's deadline, due to no personal extensions, either. This year they're broadcasting out of the country until 20 March, so I'll have a bit more trouble getting their signatures when they have time to check the portal and when they get to a location where they have strong wifi. Plus CT redid their S-corp/partnership form and broke out a separate PTET form to learn. Not crazy about their bookkeeper, either; I just found mid-six figures under Taxes on the P&L instead of the BS Shareholder Distributions! (They take plenty of salary, so that's not the problem, just that their profit is a LOT higher than they are expecting.) I'm trying hard to get through this set of returns before Monday.

The worst thing about a 15 March deadline, and others such as brokerages having a February deadline and also extensions to that, is that I just barely get into 1040s when I have to shift gears to biz entities, and then spend a month trying to pick up speed again on 1040s. It breaks my stride.

Anyone get well into a return where you thought you had everything, only to discover that their Int/Div/CG seems way to little; they forgot to tell you they changed brokers during the year, and the 2nd set of statements isn't out yet? I hate to restart later but still need to review my earlier work and...

OK, I know I'm procrastinating.

[mcb39]

I just called one yesterday to ask if they had any investment income this year.  She said, "Oh, that just came today.  I didn't know that you needed it.  She dropped it off, I finished the return and filed it.  Today she texts me a picture of a K1 that she received today, but of course she didn't think that we needed it since they didn't draw any of that money out.  It isn't going to change the outcome of their return, but I feel ethically bound to include this in their income to avoid repercussions.; so will amend.  I told her to take her time getting it to me.  I am busy.

[Catherine]

On 3/7/2025 at 10:06 AM, schirallicpa said:

My daughter is expecting her first child in June

Congratulations!!!

[mcbreck]

I have several clients who are dealing with mild dementia / chemo brain fog / TIAs and it has me worried about my future.  I was thinking today - how quickly could you get tax season done if everyone delivered everything correctly tomorrow morning? Wouldn't that be wonderful?

One thing I'm reminded of every tax season is that we can choose to be happy or unhappy - it's completely up to us. I had meetings with three ladies this weekend who have very little to be happy about in life right now and were pure joys to spend a 1/2 an hour each talking with. I had a meeting last Thursday with a lady who has ever reason in the world to be happy and she was completely miserable and her negativity was just soul sucking. It's a choice we all have.

[Marie]

WHen you file the extensions because you can't get it finished, what do you do about the filing late penalty?  Most of  my extensions owe money.

[Lion EA]

One safe harbor that's not too time-consuming is to have them pay in enough with their extensions to bring their payments up to 100%/110% of what they owed the prior year.

[Randall]

I have an annual eye exam in the fall.  The Dr. wanted me to start eye drops in one eye.  Wanted to see me again in six months.  Oh, that's today, March 12.  What was I thinking?  I should have put it off another month after April 15.

[mcb39]

4 hours ago, Randall said:

I have an annual eye exam in the fall.  The Dr. wanted me to start eye drops in one eye.  Wanted to see me again in six months.  Oh, that's today, March 12.  What was I thinking?  I should have put it off another month after April 15.

I have to do drops in both eyes three times a day and ointment at night.  It only makes my eyesight better.  I wish the same for you.