I have a client on extension who has not signed e-file authorization forms and is not returning emails. What do you do? They do not owe.

[IRonMaN · Accepted solution]

Don't file until they provide you the authorization forms.  I have one that owes and hasn't returned it yet.  I'm heading out in a few minutes and it will be filed late if the authorization doesn't show up before then.

[LSTAX]

agreed, but is there any downside to them for filing late if they have refunds due?

[bjashcpa]

The downside is - it will take longer to get their refund (since it can't be filed).

[LSTAX]

Is it too late to efile now?

[bjashcpa]

No, you should still be able to efile.

[LSTAX]

it looks like I will be able to push it through - phew. Multi state too

[bjashcpa]

I am not sure of the e-file closure date yet, but I would bet it will be in December.

[abctax55]

E-file closes sometime mid to late November, reopens sometime in January.

[bjashcpa]

Thank you very much!

[LSTAX]

Thank you all.  I was so discouraged.

[abctax55]

YVW...
And if you are relatively new to this profession, may I give you a word of advice?  Nip this * I'll wait around until mid-night for you to make up your mind* B/S in the bud.   IMHO - I do not have a single client that I need nearly as much as the client needs me.  

[LSTAX]

agreed

[IRonMaN]

My problem child showed up just in the nick of time ---------------------- and I was pissed on how close she cut it.  Just a word to the wise here.  If you hear that I was sitting waiting for a client until midnight on the 15th, you best take away my guns, knives, forks, or anything else sharp because I have lost the last few marbles I have and I would have to be considered a danger to society at that point.

[abctax55]

We know you well enough to stage an intervention if that were to EVER happen.  Just as you would do for us :joy:

[IRonMaN]

:+1:

[Accountant-Man]

I have two of these 1040s. Clients do not answer emails or letters, so I have to assume they screwed me and went elsewhere or filed on their own using returns prepared by me. 

In on case I have a signed engagement letter, so since we signed it I can sue them to get paid, even if I don't ultimately e-file their returns. That was completed March 5, so I have no clue.

I cannot e-file without their approval.

[Edit] Interestingly, the IRS' Where's My Refund site said that the exact amount of the refund I calculated was applied to prior debts. But I didn't e-file it.

[LSTAX]

In my case they did eSignature but now want time to get more information and don't want to extend.
The signature will expire after 3 days.  So I'm worried they will say the signed off and I didn't e-file.  Is there any penalty?

[LSTAX]

I meant they don't want me to file yet and don't want to amend later

[abctax55]

...and don't want to extend.
There isn't anything to *extend*; the returns are now delinquent.
Certain elections are only valid on a timely-filed return (including extension).
Generally, if all taxes are paid, filing late isn't *that* big of a deal.... but I never advise clients that it is OK to file late.

[Accountant-Man]

Why does their signature "expire"?"

[abctax55]

Oh...I guess the 'signature' via eSignature could expire.  I don't use it.

[abctax55]

"...but now want time to get more information and don't want to extend"
How did they convey that info to you?  Document the hell out of their response to wanting more time.
And consider firing them as soon as you DO get the edocs back & the return accepted.

[LSTAX]

We have 3 days from receipt of 8879 - they signed electronically. abctax55 brings up elections - that's an excellent point. Luckily none. Anything other potential problems? They are already late. They had a valid e-filed and accepted extension.  I waited by my computer until midnight 10/15 for their information.  Unbelievable.

[LSTAX]

I have emails. This was a huge AGI return with lots of K-1 intricacies from Oil and Gas investments. What if down the road something gets questioned and the refund turns into an amount due.  and it was filed late.

[IRonMaN]

 "I waited by my computer until midnight 10/15 for their information"

I have a nasty tendency not to fire clients, but they would be sooooooooo fired if they were my client.  Life is too short to put up with that kind of nonsense.

[LSTAX]

Yes, and life is definitely too short for that. Thanks for the support and sharing how you all handle these things. I'm just glad there are no invalid elections now waiting out there.  

[abctax55]

"... What if down the road something gets questioned and the refund turns into an amount due.  and it was filed late."
That could be a problem.  BUT, it is not "your" problem.
And I'd probably fire them right now, payment or not, efiled or not.  
Waiting until midnight for a response is not something I'd ever do for a client.