The End Is Near
That phrase can have so many different meanings, but as a tax preparer for many years, to me it means the end of TAX SEASON is near. For most tax preparers, at this point, they are weary, overwhelmed, and just wondering how they will get all of the returns completed, or extensions filed.
You may ask why it is so stressful for tax preparers? Yes, given that this is a once a year task for each of us which brings tax preparers additional work, what other factors create the stress?
First and foremost is the procrastination of taxpayers in providing information to the tax preparer. There are taxpayers that are diligent in monitoring the receipt of the needed information and, as soon as they have received all tax forms, they have passed it on to their preparer. But, then there are others. . . . . It is the beginning of April and some taxpayers still haven’t shared the information with their preparer. Yet, the taxpayer thinks the preparer will be able to drop everything to do their return. I ask, is that being fair to the preparer who has piles, perhaps, of returns to do for people who submitted their information earlier?
So, you may ask, why not file for an extension? Many have the misunderstanding that filing for an extension means you have an extension of time to file but also for payment of any tax owing. WRONG. Filing for an extension is only for purposes of filing. If there is any tax liability anticipated, a payment should be made before the end of tax season to toll the accruing of penalties and/or interest for underpayment or late payment. The tax preparer still needs information in order to prepare and file for an extension. An extension is not a free pass to address the taxes at a later date. A diligent preparer will want ample notice for the need to file for an extension.
There are situations where a taxpayer may not receive all of their information needed to timely prepare a return. This is most common in situations where a taxpayer has an interest in a partnership and receives a Schedule K-1. This K-1 may not be issued in January or February like most tax information. So, a taxpayer’s return must go on extension.
As a tax preparer, I would ask that whomever preparers your tax returns deserves your patience and diligence. Here are a few quick and simple suggestions to make life a little easier for your preparer:
- Don’t procrastinate in providing information to your preparer.
- Be organized and have your information in some order. If you provide information on paper, take the information out of envelopes and open it up. Group it together by income, deductions, etc. If you provide the information electronically, don’t send everything in one file in any order. Organize it.
- If your preparer has encouraged you to make estimated payments, provide information on payments made.
- If your mailing address changes, tell your preparer. Don’t make them wonder why they are seeing two different addresses on your information.
- Don’t expect your preparer to “create” charitable deductions for you if you do not have receipts and are able to itemize deductions. Have proof of your donations.
- Regardless of the method your preparer uses to obtain your signature – electronic or on paper – give your attention to this as soon as possible so that your preparer can check your return off of their TO DO list.
- Finally, remember that your tax preparer is human and doesn’t have a magic wand. They are preparing your taxes according to the tax laws and are not looking for you to have to pay taxes, so don’t get mad at them if you owe. Numbers don’t lie. And, keep in mind that a little sweetness – whether in attitude or sugar – can go a long way with your preparer.
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