Paperwork is due 45 days before the deadline (either federal or state). Documents submitted after the deadline are not guaranteed to be filed on time.
Liscio is a secure portal we use for exchanging documents electronically. It’s far superior to emailing sensitive information, so we highly recommend you use it year after year to upload tax documents as you receive them.
It is our standard practice to extend all returns that we engaged with the previous year.
It is not a red flag. This is a standard practice for a firm of our size. We do this as proactive protection for our clients so their return does not miss the original filing deadline. According to the New York Times, 15 million Americans filed an extension for their 2018 tax returns in 2019.
There is no penalty for receiving an extension. However, extending your return does not impact when your taxes are due. If you owe money, you are still expected to pay by the original deadline. If you do not pay by the first deadline, you will accumulate interest.
Do we have a relationship with you already concerning your tax returns, i.e. did we do them last year or did you sign a flat package? Have you communicated with Ann that Sweeten CPA will be filing your tax return this year? Did you respond to her engagement email this spring? If the answers to these is yes, then you are on our list to extend. For your peace of mind, you can always call in to confirm or request the electronic confirmation.
The final draft of your return is your electronic copy for your records. We can easily send that again at any time. If you want a hard copy printed by us, you can request it for a printing fee.
Your tax returns are added to our queue as we receive your tax documents and final (i.e. completely reconciled) bookkeeping work. The queue grows longer the closer we get to the deadline. The tax return process is heavily impacted by your communication with our tax drafting team. Your quick responses can expediate the process!
Talk to Ann or your CPA first thing in the year! They can provide you with our tax return checklist. This will open communication between you and the tax return drafter who can keep you updated on what is needed to file early.