Envelopes, Labels, List - What Are You Doing

[dascpa]

For last hundred years I've provided envelopes for tax payments (final balance,  estimates, etc.).  A few years ago I added in a sheet I created listing Federal and all states tax payment websites and advised clients I recommend to pay online.  But I still include envelopes.

Thinking about next year - as more and more people are paying online - what are you going to do - envelopes, envelopes and list, mailing labels and list, or just online payment lists?

Note, I do have to check annually website lists for all states to make sure they are the current ones.

[IRonMaN]

I'm an envelope kind of guy and I think I will die that way.  I have very few clients that pay online so my clients need my envelopes.

[dascpa]

I cannot track the percentage but I've been pushing online payments for a few years so my guess is 50% older people, 95% younger.

[IRonMaN]

The majority of my clients would be under the older category and it's just easier giving them an envelope than to look at the fear in their eyes when I suggest doing it electronically

[TaxGuyBill]

Most of my clients now are virtual.  If they are comfortable with uploading to a online portal, they are comfortable with paying online.

For the not-so-virtual clients (including those who mail their information to me), I ask them if they plan on paying electronically for any payments.  Each year I have my clients fill out an annual questionnaire of yes/no questions (such as "did your martial status change", etc.).  If you do something similar, maybe include a question asking if they owe money (including estimates) if they plan on paying electronically or not.

[dascpa]

A year ago I sent out a simple questionnaire: 

(1) Do you want your tax return on paper, or electronically in the portal only (it's automatic for the portal) or both.

(2) Do you want your supporting documents returned, or electronically in the portal only (I combine all into one organized file and it's automatic in the portal), and

(3) Do you want your estimated and/or payment due vouchers on paper, in the portal or both.

I got less than 5% of the people respond to the questionnaire.  So asking them how they plan on paying would be a waste of time.

[IRonMaN]

5%?  I think I would have hit 3% if I was lucky if I sent out something like that.  Congratulations on achieving that overwhelming response 😜

As a side note, we have a client that has a few bucks invested with a local branch of a national investment company.  Every year it is a challenge to have them bring in their 1099 for their investments.  It's the old deer in the headlights look every year.  The other day the client met with their investment person and he asked where their 401k contributions were being reported on their return.  We kinda have to know that you have a 401K plan and that you are contributing to the plan before they show up on the return.  Just did 3 years of amended returns for the 401K contributions😳

edit - oops I meant SEP plan