TAX SEASON IS HERE - THE FUN OF FILING OF INCOME TAXES THIS YEAR

 Got some tax returns out to clients.  It has not been easy this year.  In addition to the usual problems – missing papers that clients have to get to me after the sending the rest of the papers, etc.  I have been having unusual problems this year.

A business client was ill and needed surgery – so had to get an extension for her business as the returns for same were due March 15.  Then sales tax was due March 20 – luckily she was back at work part time by then and was able to mail me (she does not use a computer at all) a list of her sales so that was out on time.  

I keep a copy of last year's returns for clients on paper and scan all returns (and many other papers) into the computer to be able to store them in much less space and it is much easier to find and access what is needed.  I have been using 2 different software programs which make pdf files to do this.  We had to get a new “all in one” (printer, scanner, fax) during the past year – this is the second one we have bought – returned the first one due to scanner peculiarities and bought this one, a different unit from a different manufacture, which seemed to work fine.  But it has developed peculiarities also – I cannot add pages to a saved pdf file.  So I was making different files and copying the pages into the older one from the newer one.  Did that on a return recently and suddenly – all the pages are there, but I can only print the pages from the original file.  Husband found software to combine files – it took over my computer making itself the default not only for scanning, but also for printing (and we did not even know it printed.  Husband took it out today, but it still seems to be default for scanning and printing – I will have to have him reset the default programs for me.  (Yes, I could do it myself – in college he would copy my computer programs, but it gives him something to do and if anything goes awry, at least I will not get blamed while he repairs the problem.)
    

THOUGHT OF THE WEEK -

Tax time is here (in the USA) – don't forget to file on time or get an extension.  Don't give Uncle Sam (or his friends the states) a reason to charge you penalties and interest – you KNOW you pay them too much to begin with.  Only 19 days left to file (due April 18 this year Federally and in most states).

NO MATTER THAT ONE THINKS ALL IS UNDER CONTROL - SOMETHING WILL GO WRONG

 Well another week gone past – how could it be?

I put away more of the Christmas decorations during the week.  I have a couple of boxes left to go downstairs and plan to take them down tonight when I go down on trips to washer and dryer for laundry.  I also have my teddy village Christmas on the second floor (boxes are up there to store the Christmas bears in), but have held back on putting it away as there is not much I put out for Valentine's Day – which is now in the past anyway – so I figure this year I will jump right to March.

Now I am getting started doing tax returns for clients.  Some business income returns are due March 15.  I have a partnership which owned by husband and myself and the return is almost finished – but it does no business so that it is easy to do.  

I do have a problem with one client.  The business returns are due by March 15.  Client has not been well and I need all of the information from all of 2022 to prepare client's returns.  So while neither client nor I like extensions, the business returns have to go on extension.  

Federal extension – no problem – I filled in the form and it does not even need to be signed so I will mail it to IRS.  Client's business is in a large city in our state – I prepared the extension form for the business's city income tax return and included the minimum tax payment as client generally has a loss lately, wrote up instructions and it will also be on its way to client tomorrow with other tax related papers for client to write a check, sign the form and mail out.

Problem is client's corporation return.  If it was a regular corporation or a partnership or even a business which Somehow they have the wrong address for the business, sent the papers to that address, and cannot send it to another address! If it was owned as “a sole proprietor” it would also be no problem. Somehow they have the wrong address for the business, sent the papers to that address, and cannot send it to another address! The business is, as are lots of other businesses, what is a called “an S corporation”.  This is a sort of a cross between a corporation and a partnership (to keep it simple).  For some reason this type of extension and ONLY this type of extension has to be filed online.  I cannot file it for client as I am not the owner of the business.  Client cannot file it as does NOT use a computer at all.  Client has been ill and in the hospital so cannot send me the info I need to prepare the return!  I managed to get someone at the state tax office to agree that due to the circumstances of client's age and illness they would mail an extension form for us to use.  Client never received it.  Remember client is not at work due to illness and they can only mail the form to the business address!  Someone checked her business mail for her and the form is not there!

I telephoned the state again and found out that somehow they have the wrong address on file for her business – and they can ONLY send the extension form to the address they have on file!  I pointed out that they have her returns from past years and can see on same that it is the wrong address, no did not help.  

What we apparently have to do – client has to give me a power of attorney for the business.  I will then call the state tax office and get them same so they can let me do things and talk to me.  I then will change the business's mailing address to my house – they can then mail ME the extension and I can sign it for client.  After a month or so I will then again file a change of address form for the business and change it back to the correct business address!  

Why this type of business has this problem in our state and ONLY this type of business I have no idea.  This is something new as in past years if an extension was needed it was not a problem.

THOUGHT OF THE WEEK  -

It is amazing how many odd things happen to make life harder no matter how organized one is.

SO MANY PROBLEMS TO RESOLVE AT THE SAME TIME - WHICH TO DO FIRST?

 Did not get to do much yesterday.  It was nasty weather and I was looking forward to being in the house and getting caught up – HA!  I had two major projects to deal with – each of which needed me to telephone a different tax agency - which would, of course involve sitting while on hold with each of them.  

I have a client who is in her 80s and does not use a computer.  The alarm company for her business will only bill by email.  (Businesses should really not presume that EVERYONE uses a computer or a cell phone – even more so a  smart phone as not every one does.)   Since I used to go in to her business every month and I would usually end up writing the check for this bill when I came anyway, with her permission I opened  yet another email account – this one solely for her business – and we set up with the alarm company to sent the bills to this email address.  Before I would go to her on the quarter months (alarm company bills quarterly) I would print out the out the bill at home, bring it, and write the check for it for her.  

When I checked my email yesterday there was a bill from her alarm company saying she had not payed the new amount due on the last billing and owed them $40 more.  Since the other two matters involved one matter due by March 15 and the other due by May 15, this moved to the top of the list to call.  The woman at the alarm company was very nice, but could not talk to me (though in the past when I went to the client's business they had been given permission to talk to me), especially since I did not know “the code number”.  The employee told me to have client call her and nothing would happen in the interim (last thing client needs is the alarm on her business shut off).  

I telephoned her on her cell phone as she had planned to be away during January and I did not know where to call her.  She is not well and needs surgery – more complications.  She told me that she would have a family member call me back as I could fax the bill to her.  No one called.  

I then went on to a problem involving the same client.  I was concerned before finding out she was not well about getting her state business return filed on time due to her having to mail the info as I am NOT going into NYC yet due to Covid concerns.  But, now knowing her situation of being not well, it is was even more important to have an extension form for the state return.  For some reason this type of business – and seemingly ONLY this sort of business – can only file a state extension online!  Now normally this would be not be a problem – as accountant's software for business filing would take of it – but since my practice is sooo small (this is my only business return to do) I don't have the software.   I could have the taxpayer go online and file the form – but, remember, she does not use a computer and in any case would be terribly confused trying to do so.  So I had to call the state department and sit on hold for about half an hour (which is actually much less time than I thought it would take). I got a very nice lady there.  I apologized for the problem and explained the odd situation and that the client was ill and there was a decent chance that the return would have to go on extension.  She actually had to take all the info and then go and GET PERMISSION to mail an extension.  But, just for the fun of it, she can only mail the form to the client's business – where neither she nor I will be!  I called the client back and explained and told her when someone goes in to get the mail for her to let me know so I can get the form – or a fax or an email of it in case we need it.  

Next stop – IRS.  (You can see what a fun day this was.)  I have to file an annual form for our reenactment unit (which is a non-profit).  It is a “postcard” form, meaning there are only something like 5 questions after identification information to be filled in.  I have been trying to file this form since the second week in January.  They have changed the filing and the sign in this year.  I tried using the web address from the past – when I do I get a message that the system is “under maintenance”.  I found an online booklet about the changes and tried using the filing web address in the booklet.  That site when I try to sign in was resulting in a “error 404” message.  I figured maybe it would not work until after the opening of the regular filing system on January 23.  Tried it again since then and again yesterday.  This time husband tried also to sign in (he is also an officer in the unit) for me using a different browser.  Same problem.  So back on the telephone.  I reached someone in that department – they are not open yet for filing!  So I will wait awhile before trying again.  

This morning I get a telephone call from the client – she spoke to her alarm company and there is no problem, she can pay the difference when she pays for the next quarter.  Thank goodness, her alarm will remain on.  I explained to her that I got NYS to mail the extension form – but it is going to her business.  So when next she or a family member goes there for mail, let me know that she has the form and we will figure out if it should be sent to me by mail or if she should have a family member fax or email the extension to me.  I also noted in my “todo” list for when her next bill for same should come by email about this to remind me.  

So most of the day yesterday was taken up with these problems!  

THOUGHT OF THE WEEK -

One has to know how to prioritize.  Originally I had placed getting the NYS extension form for client as the more important thing as the IRS matter involving our reenactment unit is due much later than the NYS form for her – plus if that is late, as long as the 2 years are filed as they should be, would not result in a fee being charged or other problem.  

While each of the problems was rather important, once it arose as a problem, I had to move the alarm company to the first thing to do as the alarm company was expecting to be paid right away as they had not been paid the correct amount – and we don't want them to stop monitoring her business, especially if she not going every day, so it automatically took precedence.    

When overwhelmed do you stop and figure out which HAS to be done first and what can wait until last and what order the other things have to be/can be done so everything is done on time.