The holidays ahead signal the start of serious tax season preparation for most tax preparers. Staffing, training, testing new software and technology, and becoming proficient on the latest tax law changes are at the top of most preparers' to-do lists.

And the state of the economy, naturally, remains on peoples' minds.

"In recessionary times, people are looking to cut expenses," said Mike Solomon, partner-in-charge at the Philadelphia office of Amper, Politziner & Mattia. "We're experiencing a lot more fee pressure as an industry than ever before, so it will be hard to get that 3 or 4 percent inflationary increase. Clients are more closely examining their fees, as well as looking for more opportunities to reduce their tax burden."

Boston-area regional firm DiCicco, Gulman & Co. LLP, in anticipation of tax season, has just completed a major office shift, explained chief operating officer Cheryl Burke: "We re-organized the firm by practice group area. The reason is to better focus on clients, our staff and the firm. Each of our clients will now have a dedicated team - audit and tax expertise exists in all the groups."

"We planned for tax season by investing in training, and making sure the staff knows the strategy and understands the goals of the firm," she continued. "Our clients need us to be there for them, and we want to keep them focused on client service."

Rochester, N.Y.-based CPA Ellyn Schaefer said that she cut expenses by switching to a lower-cost professional software package. "We've been attending software seminars, but haven't put it to the test yet," she said.

Much of the preparation centers on the advice that practitioners will give their clients. This year, given the state of the economy, it will be more important than ever.

2009 CHANGES

Schaeffer has been advising her business clients that the potential carryback period for 2008 net operating losses has been lengthened from two years to five years. "The gross receipts test has been raised from $5 million to $15 million, so more businesses are able to take advantage of the provision," she said. (For more on NOLs, see "Tax Strategy" on page 13.)

"This year, return preparers should be careful to review what questions they are asking on the questionnaires they typically send out at year's end," said Bob Scharin, senior tax analyst at the Tax & Accounting business of Thomson Reuters. "Some important tax law changes took place in the middle of the year, so it's important to know the exact date the client engaged in certain transactions."

"For example, the sales tax deduction for car purchases took effect for purchases after Feb. 16, 2009," he said. "The homebuyer credit started out as a first-time homebuyer credit, but it's now extended to current homeowners who are moving. Changes in the provisions took effect for purchases made after Nov. 6, 2009. Other law changes that may affect what a practitioner asks are changes in the Hope Credit, and in the Energy Efficient Home Credit for 2009."

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