Hi!
“You only want to extend my returns so you can get more clients!” bemoans the late-season taxpayer.
However, you WANT a tax advisor that extends their late-season clients. Why?
The issue with tax season-only firms that don’t extend:
Firms that focus on “tax season only” are just that: Tax season-only firms. They get all the returns done as best they can in the season & close up shop after. What is wrong with this?
- The staff at such firms are temporary, transitory, and often have other professions. How can they specialize in tax, ensuring your work is correct, if their real job is in another industry?
- It is impossible to build a relationship with this type of season-only setup
- This type of arrangement has no room for tax planning, since such firms are focused on work done 1.5 months of the year
- Season-only firms rush to complete as many returns as possible, increasing the risk of errors. You want a firm that will take their time if you have a complex case or are approaching your accountant late in the season
- If you receive a letter from the IRS, they will be nowhere to be found
- If you have questions throughout the year, forget it
Compare & contrast this to firms that are open all year. Real accounting firms are open year-round, allowing for the following:
- Tax reductions: Detailed tax planning, tax strategy, and actionable recommendations, leading to real reductions in tax. Tax planning is real: there is a reason why the most successful taxpayers invest in tax planning. Fortunately, the tax strategies available to the most wealthy individuals are available to all. The key is mid-year tax planning
- Relationships: We have the lowest staff turnover rate in the industry. Why is that? We have engaging, challenging, and complex work year-round to keep our staff busy, paid, and interested. Why does this matter to you? Because you can build a relationship with an advisor that will guide you year after year.
- Error minimization: Extending gives your accountant 6 months of penalty free time to work on your taxes, reducing the possibility of anything missed, overlooked, etc.
- Decrease of stress: An extra 6 months to prepare returns during the summer months takes the weight off the first April deadline
- Reputation: If you research the best firms, you will see that a majority of their clients are on extension, and some firms extend as a matter of course first thing in the year.
In summary, tax planning and accurate preparation takes time, so we always recommend for clients to take one of the two options:
- Either start early, such as Nov of the previous year, which is excellent for identifying last-minute strategies
- Or, if you are later-season, do not be afraid to extend if your accountant suggests it. Each year, 10 million Americans extend for these reasons above & more.
Our cutoff for new extension requests is in 4 days (or when we get full, whichever happens first), so if you have questions about how extensions work, or any tax or accounting topic, just hit “reply” and contact me directly.
—
George Dimov CPA
www.dimovtax.com
(833) 829-1120 toll free
