Deadline for 1040 Clients versus CPA firms
One of the constant problems for CPA firms with individual clients is getting all of their information in time to prepare, review and file the return before the October 15th deadline. However, there are always clients that stretch the process to the last minute no matter how many times you ask for the information. I once worked at a firm where there was a client that was the last tax return we filed by the October 15th deadline three years in a row.
As a result, we kicked around the following idea in the firm.
Since some individual clients are always going to be lazy, lets send out a letter that essentially says the following (but in a nice tone of voice):
We want all of your personal tax return information by June 30th. Unless your situation is very unusual, there is no reason (except for Schedule K-1s) for your information to come to us after that date. Therefore, if any or all of your personal tax information (except for K-1s) arrives to us after June 30th then your tax return preparaton fee will automatically be increased to at least XXX or 130% of last year's tax return fee.
Although most people thought it was a good idea in theory, no one was willing to risk scaring away clients. Therefore, I thought I would put it to the group for discussion.
Bill Meador, CPA