Ready, set: Tax pros prepare for tax season

December 8, 2020 9:00 AM

The run-up to tax season traditionally involves a certain amount of frantic preparation. But with 2020 having upset any number of traditional expectations, it’s reasonable to prepare a little differently for 2021.

With that in mind, we asked a number of tax practitioners to share what they’re doing to get ready for the upcoming filing season.

So what’s first?

Visitors during a virus

A sign reminding people to social distance stands at Louis Armstrong Park in New Orleans, Louisiana, U.S., on Wednesday, July 15, 2020. Many places that suffered most in the first wave of coronavirus infections including Louisiana are seeing case counts climb again after months of declines. Photographer: Sophia Germer/Bloomberg

Sophia Germer/Bloomberg

“First is how to handle clients,” said Twila Midwood, an Enrolled Agent at Advanced Tax Centre, in Rockledge, Florida. “Back in March, we stopped in-person appointments and encouraged clients to use our portal and hold phone or virtual meetings to review. Because the due date was postponed until July, things slowed down and we offered curb-side service when clients were picking up their documents. Our office doors are still closed and in-person appointments are staggered to keep the number of people in the lobby area down. I’m struggling with these same issues this coming season unless things change drastically with COVID-19. I’ll incorporate into my annual tax package information regarding in-person appointments and encouraging either phone or virtual meetings.”

Still working on working from home

Miguel Pereira/Getty Images

“Procedures if the offices are locked down for even a short time,” said Scott Kadrlik, a CPA and managing partner at Meuwissen, Flygare, Kadrlik & Associates, in Eden Prairie, Minnesota. “Even though the staff went home and were able to work from there, the procedures for tracking of data and projects weren’t ready. Setting up home offices that are productive and efficient is the No. 1 priority for the 2021 season.”

Zoom on

Burbank, California, CPA Brian Stoner has started downloading 2020 software and scheduling year-end planning sessions: “I will not be sending organizers until the last week of December through Jan. 15,” he said. “If I send them earlier, I usually have to resend them. I’m also scheduling 2020 tax updates in January — all webinars this year.”

Relief is in sight

Photographer: Pool/Getty Images

“The No. 1 task on my list today is addressing the penalty-free distributions from qualified accounts due to the pandemic,” Enrolled Agent John Dundon, president of Taxpayer Advocacy Services in Englewood, Colorado, “and the extent to which [clients will] sign off that they are a qualified individual for purposes of Sec. 2202 of the CARES Act.”

Letters of the law

Internal Revenue Code books sit during a House Ways and Means Committee markup hearing in Washington, D.C.

Andrew Harrer/Bloomberg

Top of the list is “keeping updated on the tax law changes, both those we know about and those that may arise in the coming months — federal, state and local,” said Phyllis Jo Kubey, an EA in New York. “I work with many clients with multi-state filing requirements, so knowledge of how all states conform — or don’t — to recent federal tax legislation is paramount. No. 2 is client communication, making sure clients are updated regularly and know that I’m here for their questions and concerns.”

Doing business

Bloomberg via Getty Images

Tax developments and the right mix of clients still necessitate timely moves. For instance, the IRS has recently announced their intention to allow partnership or S corp owners to deduct the state and local taxes directly related to their business.

“We’ve been working with our partnership and S corp owners to take advantage of this,” said Gail Rosen, a CPA in Martinsville, New Jersey. “In addition, we’ll continue to talk with our single-member LLCs and sole proprietors about adding a partner or switching ... to qualify.”