Clients have a lot of questions this year beyond just higher taxes. Preparers report they’ve already begun fielding inquiries about the later start to tax season and possible delays in refunds.
The
The result: additional questions from clients in what already would have been a tax season with much anxiety due to the fiscal cliff deal. Though some clients may walk in informed and reasonable, others won’t.
“It's hard to predict exactly what the late start is going to do to us,” said Enrolled Agent Judy Strauss, an H&R Block franchise preparer in Cobleskill, N.Y., and a member of the
“Everyone is told their refunds are going to be delayed because of the late start and because the IRS is now touting a 21-day cycle, no longer an eight-to-10-day turnaround,” she added.
EA Andrew P. Stadler of Terre Haute, Ind., also an NAEA member, advised telling clients, “Don’t play a particular political party game, but just blame it on Washington and their inability to work together -- politics at its worst and the taxpayer is taking it on the chin. If you have clients that have their tax documents and they are ready to file their tax returns, encourage them to come in now to complete the return. The IRS has
CPA Keith E. Huebel of Bel Air, Md.-based Huebel & Associates and board member of the
Huebel also advised letting clients know that the IRS will also launch a “Where’s My Refund” application for 2013, no longer adhering to a “Refund Schedule” as in years past. “‘Where’s My Refund’ will attempt to have responses available on the Web site and phone application within 24 to 48 hours,” he added, with refunds available within 21 days of processing. He also advised letting clients know that the site is updated daily and that additional descriptive information will be available. “It may not be case-specific, as it will use generic language, but it still will be an enhancement to the older system,” Huebel said.
Strauss also said that her company has been helped not only by the stockpiling waiver but by ADP and Paychex not yet issuing W-2s yet due to the reporting requirements of the health care benefits employers are paying on behalf of their employees.
Pre-strike measures
Though some preparers predict clients will shower them with questions no matter much information they disseminate, other preparers are trying to head off problems.
“Clients coming into the office at this time of the month are able to have their returns completed and sent on for holding,” Strauss noted. “Being able to download W2s -- when ready -- and New York State unemployment forms helps with the process. Without the actual forms, we can still prepare the return and put it on hold,” she added. “Starting and having the basic information in the system saves time later.”
Strauss added that her office is capturing clients’ e-mail addresses or text numbers so clients can be advised of the status of their returns.
One of the best prep tools remains
On the
“Informing them about the delay presents an opportunity to tell them the positive news of the extended laws, particularly if some apply to them,” another preparer noted. Other preparers said delayed refunds are a chance to inform clients about retirement savings and other tax-deferred payments they could be making throughout the coming year.
But, noted one preparer, “I am going to jokingly tell my clients that anyone who gets a refund before July 1 is just plain lucky.”