So frustrated. My taxes were given to Accountant 4 months ago. Everything is done through Quickbooks, it’s not like I’m a challenge.He gets a thumb drive with everything on it. I hate that he waits until the last mi Ute, but I dealt with it last year. This year he tells me ( on the last day to file) that he has to file an extension for all his clients because he has no help and couldn’t get anybody’s done. Says it will only be a week. That was almost a month ago and they still aren’t done. He’s telling me it’s “ OK” because the extension is good for 6 months. This is the first time I’ve ever had an extension. Why would I…. I had everything ready in February! Am I overreacting?

I may be misreading, but I believe filing an extension only keep from getting a non-filing penalty. There are still penalties if you OWED anything and didn't pay by the due date (April 18th, this year), even if you did extend properly.

I hear ya !

Had the same experience, for many years.

Made new ground rules for the next Accountant

and things have been back on track along with a relaxed

mind.

Life is not hard, some people are.

Around 17 years ago I'd thought I'd treat myself to an account to do my official accounting and tax filing. I handed off all of my records, completed and ready for review. I signed a contract that stipulated things had to be filed on time, with a deadline written in stone. Cost $5,000. My return was going to be way over 100 pages.

The date came and went. An extension was filed. Now it was 5 months after the normal due date and still almost nothing was done. This accountant, a one women show, was a recommendation from a close friend. His taxes turned out to be straight forward with only 3 rentals and no personal business.

Since I couldn't sleep, I fired this accountant, got all of my records back and then went with a large firm. With over 200 accountants and several lawyers on staff, they finished and filed by the extended deadline. Their fee's were "more" than the first accountant, but there was a deadline with less than 30 days to go.

So for the next 10 years I did my taxes myself, trying to recoup the loss of using "professionals", that one was "joke" and the other was a "Beverly Hills" high priced expert! I couldn't win either way.

Moral of this story, test your accountant/CPA with something small before you commit to a major filing.

I never got my $5,000 back from the first accountant. She claimed she did work that wasn't evident in the file I got back. Just reading over the material would have given her 1/2 of the fee's, even without any work product to prove it.

There's a shortage of experienced accountants and it will get worse over the next few years. Let me explain the problem this way: To maintain our licensing, all CPA's must take continuing education annually. When I attend the courses, it's extremely rare to see a young person. I was at a course last week and there was a guy there in his 40's who stuck out like a sore thumb. Everyone else was in their 60's 70's and in some cases their 80's. For years, young people have been choosing other professions because they don't like the hours and the stress. Moreover, accounting is not "glamorous"--it's largely viewed as boring but necessary. On top of that, the tax law has gotten far more complex which means even more stress and work. That means hiring staff for a smaller firm is very difficult. Most of us wind up limiting what we will take on as a result and extensions are a necessary part of work load management. As long as you've paid in enough, getting an extension isn't a biggie.

As long as you paid your estimated owed on time, like you did, this is no big deal. In fact, from what I've read, extended returns are audited less often than normal returns. So, doing the extension is probably good all around. :)

-John...

Rents - I wouldn't worry. I file an ext occasionally. The only downsides I'm aware of, if you owe then it collects interest and it also extends the date an audit can be started (either by the length of the extension or 6 months - I forgot which).

The extension isn't the Biggie,

it's the many questions asked months later,

after you have handed off all of your information

and moved forward with your life's work.

Where's the convenience in that ?

Kinda like a slow, crappy Contractor.

Next !

I changed accountants 3 years ago. Even though I handed off the data on March 1, my return was either done on 4-14 or an extension filed. My new CPA firm is organized, prompt and cheaper.

Return went from 90 pages down to 65. Some of the extra paper was unnecessary.

Yes S i d is right, you still need to pay by April deadline if you owe.

I was caught off guard when I checked to see I had no tax owing to the Feds so I just assumed that I would owe nothing to state (California).

When tax returns were filed by October extension deadline, I discovered I owed state and paid by extension deadline by that was too late. Small penalty and interest so no big deal but I won't make that mistake again.

One recent year we had an extension...but it was when they changed the tax laws at the last minute due to the pandemic...so I understood. I don't know of any major changes this year, so I would be miffed.

I would ask for a firm date and tell the person "If they are not done by that date, I will be coming to collect all my info and taking it to another accountant". If you decide to stay with them, I'd ask for a "service agreement" signed by them that states under what circumstances an extension is warranted or whether you will even accept one.