Filing a tax extension can be beneficial to your clients and to you as a tax practitioner. But there are some misconceptions out there.
You’ve probably come across a client who chose not to file an extension because they misunderstood how it would affect them. On the other hand, maybe a client was happy to go on extension but for the wrong reasons.
Filing extensions for clients can smooth the workload. Also, there could be circumstances in this ever-changing tax landscape where additional guidance is needed in order to have more clarity on complex issues prior to completing tax returns.
Here are some best practices for handling the extension process:
Be sure that you have established good procedures with your staff and clients related to deadlines and extensions.
Use an extension reminder letter template to communicate deadlines and information needed to individual clients.
Create deadlines for your clients to deliver their information in a timely manner.
Provide extension FAQs to clients to help dispel any misconceptions they may have.
Download this Tax Extension FAQs for Clients guide to help you facilitate the extension conversation with your individual clients.