Checkmark Explore the impact of the South Dakota v. Wayfair, Inc. (“Wayfair”) decision on client’s businesses. If you haven’t already done so (and maybe even if you already have), send clients a newsletter discussing the decision. American Institute of Certified Public Accountants (“AICPA”) members may utilize the Wayfair Client Notification Letter as a starting point. If you think the decision may affect your clients, schedule a meeting to discuss the impact and follow-up in writing to document the discussion. Don’t forget to discuss the income tax aspects, as many states are using the same nexus standards for other taxes.
CheckmarkInform clients of significant changes in tax law, such as guidance released since last
tax season related to the Tax Cuts and Jobs Act (“Tax Reform”) through client newsletters. Retain a distribution list of such communications, including the dates transmitted documenting that the client was informed of these changes.
CheckmarkAlert clients about other filing obligations, such as Financial Crimes Enforcement Network (“FinCEN”) Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”) and the consequences of non-compliance.
CheckmarkEducate clients about the potential tax savings for investments in Qualified Opportunity Zone Funds (“QOZF”). Taxpayers may be able to defer tax through 2026 on capital gains by investing in a QOZF. If the investment is held sufficiently long, there may be an opportunity for non-taxable gains. The tax law related to QOZFs is complicated, but clients will likely want to know about this opportunity and may hold their CPA responsible if they are not informed. While any client with capital gains may benefit, clients with significant transactions should be identified for an individualized discussion followed by written documentation.
CheckmarkAsk clients to schedule appointments prior to year-end to discuss items affecting their 2019 return. If a tax projection will be prepared or tax consulting will be performed, obtain a separate signed engagement letter for these additional services. Sample tax planning and tax consulting engagement letters are available to policyholders in the Policyholder Resource Center. Be specific about the scope of services. For example, “calculate the impact of Internal Revenue Code §163(j) on the company in light of Tax Reform, and, if interest is limited, explore options to increase the deduction” is preferable to “explore Tax Reform’s impact on the company.”
Contact clients who have historically procrastinated in providing their tax return information to you. Consider providing incentives to them for early submission. Ideas on how to incentivize clients can be found in the articles How to Deal with Last-Minute Clients and The Early CPA Gets the Return (Done on Time). In addition, provide these clients with a deadline by which all information must be received. If information is not received by the designated date, inform the client that you will be unable to complete their return by the filing date and an extension may be necessary.
CheckmarkAddress clients who have not taken steps related to changes in the partnership audit rules for partnership tax years beginning after December 31, 2017. Advise clients to consult with their attorneys about revising partnership and limited liability company agreements to address these changes. AICPA Tax Section members may utilize the Letter to Advise Clients on Partnership Audit Changes as a starting point. Items that clients, with the assistance of their attorneys, should address in a revised partnership agreement include but are not limited to:
  • Identification of the partnership representative,
  • For eligible partnerships, whether or not to elect out of the revised partnership audit regime,
  • Whether the Internal Revenue Service (“IRS”) may collect any additional tax, interest, and penalties directly from the partnership at the highest individual tax rate or to take any adjustments into account from the partners in the reviewed year,
  • Who should make decisions related to new elections that will be available,
  • Which new tax terms and concepts may require adjustments to partnership operating agreements.
What to do now … before the big rush
7 ways to help clients prepare
5 steps to review e-file requirements
and processes
4 ways to update engagement
letter processes
3 must-do’s to review client acceptance
and continuance procedures
8 steps to prepare the firm for tax season
5 ways to help staff prepare for tax season
What to do now … before the big rush
11 items to cover in a pre-tax season staff meeting
15 things to include in a control log
4 things to remember when testing tax software
8 things every tax preparer should do for each client
4 ways to better plan for deadlines
2 keys to survival
What to do during busy tax season
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