I sent the following to a client who was asking if I would have their 2003 tax returns finished by the 12/15/04 extended due date:

I am hoping to have your returns done by the 15th.  If not, I'll file another extension.

I hope you've had a chance to catch the recent info on my blog about why it is so important to take our time to do the original returns as perfectly as possible.  IRS has started a policy of opening full blown audits on anyone who files an amended return requesting a refund.  This has changed my mind set that just getting a tax return in on time is fine because we then have three years to correct any mistakes.  With this new IRS policy, we really only have one chance to get it  right. 

One of the big reasons I have been running so far behind with 2003 tax returns is the fact that I have had to work on audits that started from very basic amended tax returns, and IRS decided to go on fishing expeditions into other years and issues that weren't even part of the amended returns themselves.  I am doing my best to protect all of us from having any more of these occur.

Kerry

I also added the following to be printed on the cover letter that accompanies all 1040s I prepare.

Please review the enclosed tax returns closely and notify us if you find any significant errors before you send the returns in.  It is in all of our best interests to make sure the original tax returns we submit are as close to perfect as possible because IRS has recently started a policy of initiating full blown audits of any person who files an amended return requesting a refund.  This has changed the mind set that just getting a tax return in on time is fine because we then have three years to correct any mistakes.  With this new IRS policy, we really only have one chance to get it  right.

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/11/2004 09:45:00 PM Send this post: