Submittal strategy

[Catherine]

Hi all --

I'm finishing up a set of returns for a homeowner's association. There are four in all; 2005 through 2008. An elderly former treasurer neglected to send in the 2005 -- 2007, and the new board discovered this and had to go back, find old financial data, go through it, etc. Then they called me in. We think we now have everything done correctly and ready to send in.

Usually it's a very bad idea to send multiple returns in together, but in this case I wonder. They don't have a big tax burden, but it's a small association and late payment penalties and interest on those penalties will be an issue. Rather than send each separate return in with a request to abate penalties and why, would it make more sense to send all four returns with _one_ letter, showing now full compliance once the situation became clear?

Thoughts? Yes. No. You're nuts. Let me stop laughing first. Pray. This is a joke, right? Etc.

Thanks!

[Margaret CPA in OH]

I have done a similar thing a few years ago for a small non-profit. I sent 3 together with a cover letter stating volunteers, etc. and asked consideration for abatement of penalties and interest. They had no tax liability, however, so it may have been easier than if there was tax owed. It worked for me.

[TAXBILLY]

I have done the same as Margaret but I added in the interest owed since they probably would not abate it anyway. In the letter I pointed out that hopefully this would close out the matter quickly because my clients were stressed as it is.

taxbilly

[Catherine]

I have done the same as Margaret but I added in the interest owed since they probably would not abate it anyway. In the letter I pointed out that hopefully this would close out the matter quickly because my clients were stressed as it is.

taxbilly

I figured interest, yes, but was hoping to ditch penalties and interest on the penalties.

Thanks, I'll try this method using your suggestions and report back anything notable if/when such occurs.

Catherine

[kcjenkins]

Just be sure that your cover letter spells out exactly what returns are included, and include an extra copy and ask that they stamp it "Received" and return the copy to you. That decreased the odds that any of the returns get stapled to another year, and over-looked. And gives you proof if anything later gets questioned about timing, etc.

[TAXBILLY]

KC's suggestion of the extra copy of the cover letter, with a return envelope of course, is a good idea.

Always learning something new every day!

taxbilly