Buckle up: This tax season is going to be a bumpy ride.
The advance Child Tax Credit payments, the Child and Dependent Care Credit, stimulus payments, the Earned Income Tax Credit, Paycheck Protection Program loans, and paid sick and family leave credits are some of the 2021 changes that could give tax preparers “their most grueling tax season to date,” according to the National Association of Tax Professionals.
“The IRS is still working through a backlog of over 6 million individual returns, which may cause complications when filing a 2021 tax return,” the NATP added.
For preparers entering this season, the organization recommended a handful of steps to get ready, including:
- Reviewing and updating website information, including contact information and hours of operation;
- Testing and updating virtual and software systems;
- Reviewing written data safeguard plans and procedures; and,
- Completing education on updated tax issues.
Getting repeat clients on the meeting schedule now will make accommodating eventual walk-in clients easier, the NATP said, adding that more taxpayers who prepared their own taxes in the past are expected to seek professional help due to updated tax rules.
