{"id":16650,"date":"2019-07-10T08:00:24","date_gmt":"2019-07-10T13:00:24","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=16650"},"modified":"2019-07-08T08:57:24","modified_gmt":"2019-07-08T13:57:24","slug":"top-issues-related-to-tax-year-2018-extensions","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/top-issues-related-to-tax-year-2018-extensions\/","title":{"rendered":"Top Issues Related to Tax Year 2018 Extensions"},"content":{"rendered":"

Given the number of changes due to the Tax Cuts and Jobs Act<\/a>, there\u2019s no doubt many tax pros put their clients on business and individual extensions. We asked several of our Intuit\u00ae Tax Pro Center authors and members of the ProConnect\u2122 Tax Customer Council for feedback on the hot buttons related to extension season. Here\u2019s what they had to say.<\/p>\n

Renee Daggett, EA<\/b>, AdminBooks<\/a><\/p>\n

In addition to some clients getting easily overwhelmed with the document collection process and needing the extra time to not feel rushed, we also find that some clients want to file an extension to “buy time” to fund a retirement account.\u00a0However, no matter what the reason for extending a return, some clients are fearful of a balance owed, not realizing that filing an extension does not give them additional time to pay.<\/p>\n

Whatever their reason, it is our job to maintain contact with these client during the extension period to keep them motivated to complete the filing process well in advance of the extension deadline.\u00a0Our goal is to make the collection process easier by providing a checklist, online portal to drag and drop documents, and a fill-in organizer.\u00a0Telling them to invest one hour gathering the docs and completing the organizer the best they can makes the daunting task \u2013 created bigger in their head \u2013 more doable and easier than they expected!<\/p>\n

Fredric D. Leffler, CPA, MBA<\/b><\/a><\/p>\n

Reflecting on the tax filings put on extension this year, I am reminded of a seminal word in the vocabulary of business: \u201cwhy?\u201d\u00a0The reason for an extension must be evaluated, so if the \u201cwhy\u201d is attributed to the ambiguities of tax reform and anticipated extenders, the question is whether extensions were really necessary or merely used to justify procrastination.<\/p>\n

If the reason is the latter, then it\u2019s time to tighten up your policies and procedures. However, if the reason is related to your clients who are always on extension, they must be divided into three groups:<\/p>\n

    \n
  1. Clients who have complex tax situations requiring additional time to address or additional documentation unavailable by the filing due date; these are appropriate reasons to extend.<\/li>\n
  2. Clients who find themselves periodically remiss; if this isn\u2019t a chronic issue, then this, too, is appropriate.<\/li>\n
  3. Clients who are non-responsive or provide minimum information because they always procrastinate.\u00a0These are the ones who should be evaluated for termination! They consume your time, and provide woefully inaccurate and incomplete information.\u00a0Not only are they generally unprofitable, they engender unreasonable professional risk and liability.<\/li>\n<\/ol>\n

    When looking to tighten internal policies and procedures and clear out nominal clients, an evaluation of clients on extension is a great place to start.<\/p>\n

    Andrea M. Parness, CPA, CTC<\/b>, A. Parness Company CPA<\/a><\/p>\n

    Although we worked hard to learn the new law and inform our clients about the changes, we still had many returns that were either filed at the last minute or placed on extension. As a result, here were our top issues:<\/p>\n