Is this scenario familiar to you? Your aging client did not provide you with the documentation you needed to meet the April 15th deadline, so you filed an extension. Now, the October 15th deadline is approaching, and you still don’t have the information that you need.

Filing taxes is a complex task for many, but for elderly clients, the process can be particularly daunting.

Let’s look at some scenarios we’ve seen that hinder a senior’s ability to pull together the necessary information:

  1. Throughout their marriage, a husband was responsible for making sure their accountant had all the documents needed to file taxes. When his health declined, his wife assumed the role of caregiver as well as taking over the management tasks of day-to-day living, many her husband used to be responsible for. It quickly became overwhelming, and the wife let the tax deadline slip by.
  2. A single man has cognitive decline and becomes prone to anxiety and paranoia. As his dementia progresses, he believes that he isn’t required to pay taxes and is convinced the government is out to get him.
  3. A client ends up hospitalized at the time she should be getting tax information to her accountant. The person with the power of attorney is not local so there is no one able to step in and get the documentation needed to file taxes.

These are just a sampling of the scenarios we have seen while working with aging clients. In addition to physical and mental issues, many seniors don’t feel comfortable with online banking. They don’t have portals set up to download tax documents. They may also find it difficult to navigate how to make the necessary phone calls to get missing or misplaced documents.

How can Life Managers & Associates help with tax preparation?

With elderly clients who struggle to provide tax documents, we can step in and start sleuthing. We’ll track down 1099’s, gather receipts and list donations. Sometimes, especially if the client can’t assist us and/or hasn’t filed taxes in several years, we find ourselves with quite a puzzle to solve. In these cases, we review past tax returns and checkbooks, piecing together all the income, expenses and other elements required to file.

For our clients who have always prepared their own filings, but now find themselves unable to do so, we will help them find a tax preparer with whom they are comfortable.

Of course, the best-case scenario is the aging client who has planned for the day when they are no longer capable of handling day-to-day finances. These clients have hired us to preemptively organize their documents, streamline their processes, and keep up with their bills on an ongoing basis. We help make sure they have the powers of attorney and advance directives in place to prevent a scenario where no one has access to their accounts.

So, with the October 15th extension deadline looming, if you have elderly clients who fit any of the scenarios above, give us a call. We can help make your life easier and, for your client, prevent stress, save time and avoid penalties.