Notices in the Mail!

I received a call from a client last week in reference to a notice they received from the government. I am really annoyed when these notices arrive because the client always assumes we did something wrong! In most cases, no I am not perfect, the notice is simply a clarification of something on the tax return that we processed. In many cases, especially with the State of Delaware recently, the notices are actually advising that the client is due a refund. Here is a case in point, with the client information removed. I had a client who we estimated would owe a $36 penalty for underpayment of estimated DE taxes when we prepared and submitted the return. The client paid their balance including this estimated penalty and assumed all was well with the State. They then received the most confusing notice from the State. The client was actually under the impression that they owed over $900 based on the notice. In fact, the State of Delaware owes them a small refund. This is a classic example of how we end up looking bad. I wish the State would notify the professional preparers first so we can explain the issue to the client instead of having to calm the client down and explain an issue with is not even an issue. If you receive a notice from the State of Delaware or other tax authority, don't panic. Call Ralph V. Estep, Jr., of Saggio Management Group and let us take a look and see how we can help.