Are taxes stressing you out? Trust me the accountants feel it, too. While yes we know the tax laws and the forms or know how to find the answers to tax questions, there is a different stress that is there for the accountants. This is the final two weeks and this is the busiest time of tax season for many of us. We have had several returns come in during the past week with taxpayers realizing how close the deadline is and that they still need to get stuff to the accountant. In addition there are still individuals who are planning to take stuff to the accountant in the next couple of weeks.
As an accountant my goal is to get everything back to the taxpayer in a timely manner, but I want it to be correct. Unfortunately, that sometimes means extensions. While I know this seem to be a dirty word to many individuals, it really isn’t a bad option if there are a lot of pieces to your return or if you are late getting the information to your accountant. As long as the extension has been filed and taxes due have been paid by the April 15th deadline, there are no penalties for this. That being said if I have anybody that has filed an extension I recommend filing as soon after the week of the 15th as possible to eliminate that last minute rush at the extended deadline. Also the sooner you file, the easier it is to remember what happened the year before if you get a call from your preparer trying to clarify items.
In addition to the timing of filing tax returns there is the added stress of the outcome of the return. As a taxpayer we want refunds each year or at least something similar to the year before so we know what to expect. I also know how heartbreaking it is to hear you owe when you have been receiving a decent refund for a few years. As the accountant we do not like sharing this news. We would much rather be able to tell everybody they are receiving refunds but that just isn’t the case.
I’ve had several returns already this year that changed from last year to this year and weren’t what the taxpayer expected; some good new and some bad news. I’ve had many reactions to this news, but the best reaction a taxpayer can have to this news is to ask questions. Ask why there is a change and go over the return with the tax preparer.
While asking these questions remember we are not happy about giving this news and many of us have been in your shoes and know how hard it is to come up with that extra tax money when you weren’t expecting to. As you both go over your return you may find something that was either missed by the preparer or omitted in the documentation to save you some money (which we always hope for even if that means redoing a return).
However, if after the review, the tax bill is still due try to take something away from that conversation that can help you to avoid the bad news the following year or at least know what to expect. This is a great time to ask for an appointment after the tax deadline to go over your current year situation and changes to see if there is some planning you can do to avoid some tax or if you need to increase withholding or start paying estimates to help lighten the load at the tax deadline.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.
