Tick-tock on the tax clock

The-Shawshank-Redemption-Poster
How accountants feel after the tax deadline. Wikipedia

Time constraints coupled with the sheer volume of work makes tax season an incredibly stressful time for taxpayers and tax preparers.  Taxpayers will have to compile all of their tax information for the prior year and send it over to their accountant who will no doubt have a series of uncomfortable, probing questions.  The ever-present apprehension of having to write a large check looms overhead like a coming storm.  Tax preparers will spend countless hours poring over tax documents and IRS code sections trying to efficiently turn around tax returns, leaving no deduction or credit on the table.  The late nights and delivery food build up in preparers’ systems and erode their constitutions transforming them into mere husks of their former selves.

As each grain of sand runs through the hourglass, it feels as if the noose is tightening.

For taxpayers, the procrastination builds on itself like a cancer.  Dealing with all of this is painful, so why not put it off until tomorrow?  All of a sudden the calendar page turns and it is April 1st… not only has nothing been sent to the preparer’s office, the envelopes on many tax documents are still sealed and sitting in a pile on the desk.  In a frenzy, the documents (still sealed) are shoved into a large manila folder and mailed out, without a proper care and review.  Are some things missing?  Probably, but we have time right?  We can count on our trusted preparers!  There are still two weeks left!

For tax preparers, the work piles up and it seems impossible that there is a chance it will be completed on time.  Each day more packages arrive.  Each day the lists grow.  The arms on the clock spin at an astonishing rate.  How many returns did we get out today?  None!  This client still has open items, that client has yet to return their electronic filing authorizations, and by the way, they have a new trust return this year.  Tensions grow high and at any point a tiny spark could burst into a raging fire.  It is a marvel that we are able to maintain a level of calm in such conditions.

As the deadline comes into view just over the horizon, it feels like a blessing and a curse at the same time.  Knowing that it will soon come to an end is little solace when all one can think about is the final sprint to the finish line.  Tax preparers, many of whom have now fallen into the same rut as those for whom they are servicing, will likely still need to finish their own tax returns.  Many taxpayers are now growing anxious about making the deadline in addition to what they might owe in tax and that added stress pours like a waterfall over the preparers.

It builds and builds, panic turns to madness, the only thing fueling us is the little bit of adrenaline left in the tank.  Focus in such a torrent comes at a premium, and only the hardiest can maintain.  Frantically, the last of the returns are finalized and somehow all clients are either filed timely or on extension.  And then finally, as if waking from a nightmare, it is over.

Now that tax season is at an end, spring can truly begin.  Both taxpayers and tax preparers can breathe a collective sigh of relief and gather their wits.  Tax preparers can perhaps take some days off to be with their families, who at this point might have forgotten what they look like.  Taxpayers can worry about all of the other things in their life that need attention.  We can all forget what a test of wit and fortitude it has been until next year (actually four or five months).

So I say to you all as emphatically as I might: Happy End-of-Tax-Season!


evan_2Evan Piccirillo, CPA is a Tax Supervisor in Raich Ende Malter & Co. LLP’s Long Island office. Evan specializes in high net worth individuals, as well as closely-held corporations, S-Corporations, and small businesses.
Contact Evan at epiccirillo@rem-co.com or (516) 228-9000.

A Day in the Life

Work overload
iStock

Editor’s Note: There is no “TrumpWatch” this month, as David Roer is busy doing what he does best – being a tax accountant. As you can imagine, we’re all pretty busy here at the REM Cycle. You’re probably aware that things are hectic here during tax season, but what does an accountant actually do? What’s it actually like? We asked Gigi Boudreaux to explain.

I’m often asked about my life and experiences during tax season. To appease the curiosity, here’s a breakdown of a typical day for me during the height of tax season.

I arrive at work well before 9:00 AM in an attempt to get settled before the chaos begins. My office feels like I only left a few minutes ago. The only difference is me – I’m wearing different clothes, carrying a different lunch, and starting the new day with a fresh attitude. It’s going to be a good, productive day!

First thing I do every day, open my email. I have already glanced at my inbox earlier this morning, but decide to wait until I arrive at work to manage the myriad emails that arrived overnight. Most of the emails are junk. Delete! I am constantly unsubscribing, but the junk keeps coming. Do I want to rent a private jet? Really?! At least I got a chuckle out of that one. I move on to the important emails. One contains e-file authorizations I’ve been waiting for. Great! Wait – client only sent Federal authorizations. Ugh. Another email is from one of my partners, “Can you please handle a complicated issue for me? I had someone else, but I think you will handle it better and faster.” This will set me back a bit, but I’ll do my best. I hardly ever say no.

Soon after I arrive, a colleague enters my office, clearly distressed. She needs to take time off for a family issue. She says, “I know it’s tax season, but it is very important.” I tell her that family always comes first and that we will work together to make it work.

People start to arrive, coffee starts to brew, and my phone starts to ring. Calls from clients include, “Did you get my fax? Where do I sign on the e file authorization? Is my return done yet?” A call from an IRS agent, “I have been out sick for a month so I haven’t looked at your case, but now I am back. Can you get me several documents ASAP?” I reply sheepishly, “Uh…it’s tax season.” Agent: “So?” Then, I am part of a conference call with our IT department and our software provider, because all three scan machines in our NYC office are offline, which is kind of a big deal. While on the conference call, my husband calls in to see how I’m doing. I’ll call him back later.

The managing partner arrives, practically bouncing off the walls with energy and enthusiasm. Not sure I can match his energy, but he has inspired me to step it up.

A colleague (who is also a friend) emails me to say she’s made a quiche for lunch. Do I want some? Yes, of course! This will be the highlight of my day.  It’s so silly what makes me happy this time of year.

An extremely distressed coworker who has lost a tax return file calls: “Can you please help me?” I stop what I am doing and we find the return. I get enormous satisfaction from helping her.

Later in the day, I have a scheduled phone call with a client who has been waiting for my attention for a day, which is a long time to wait. I am conscious of this. It’s a long call and we address all of the issues on his list. He is happy with the advice. I hang up and wonder how I’m going to bill that time; he’s never going to pay for it. Yet he is content, and so am I.

I receive a text from my sister-in-law: “Hey, can I stop by later today to drop off my tax stuff?” I respond, “I won’t be home till very late.” She sighs, “Really? How late? I also need to use your printer to get one of my tax documents because my printer is broken.” Frustrated that she still doesn’t understand the hours I work after so many years, I suggest she come on the weekend. I know she is counting on her refund.

Client calls: “Can you tell me how much money I made? And I have several questions about my tax return.” This takes time, but by the end of the conversation, he understands and is thankful. I am happy to have helped.

My daughter texts from college: “Mom, I think I failed Logic. Can you talk?” Of course. Although I cannot make time for my husband, there is always time for her. I guess I need to work on that.

I meet with potential new client. Meeting new people and hearing about how passionate they are about their business is always exciting and interesting. It is contagious. This one looks promising, but you never know.

Okay, now it’s time to start my productive day and get down to doing work. I glance out the window and suddenly realize its dark outside. Clock reads 8:00 PM! Really?! I haven’t even addressed the first item on my daily to-do list. Well, I guess it’s going to be another long night.

The chaos of tax season is challenging and exciting and maddening all at the same time. You can see that there is so much more than simply putting numbers on a form and telling people how much money they owe to Uncle Sam. On any given day, I am an advisor, a technician, a juggler, a therapist, and a mentor. Why do I keep coming back each day? The satisfaction of being able to help others, clients and coworkers alike, truly inspires and motivates me. When I go home at the end of a long day, there is nothing better than knowing that I did something good for someone today.


boudreaux_gigi-3Gigi Boudreaux, CPA, MBA is a Tax Partner in Raich Ende Malter & Co. LLP’s Long Island office. She primarily serves small business clients working in the real estate, distribution, manufacturing, and construction industries. She can be reached at gboudreaux@rem-co.com.