Renew existing preparer tax identification numbers and register new tax return preparers with the IRS.
1
Research
state law regarding registration requirements
2
Update the firm’s tax quality control, and policies and procedures manuals.
If you do not have a tax quality control manual, consider creating one. AICPA Tax Section members
and CNA policyholders
have access to the AICPA Tax
Practice Quality Control Guide
3
Review tax return volume from the prior season, anticipated changes for this season, and current staffing.
4
Determine if additional staff will be required and initiate contact with subcontractors who can assist with tax season.
Due Diligence with CPA Firm Subcontractors
. Consider applicable AICPA ethics interpretations and Treasury regulations. Reach an agreement regarding such issues as fees, hours, the subcontractor’s obligation to protect confidential information and more.5
Review tax organizers to ensure that they fully address recent, complex areas of law, and reporting requirements,
such as:
If organizers do not adequately address such issues, consider supplementing them with additional questions or specifically addressing them in documented conversations with clients.
- Tax Reform,
,Wayfair Filing obligations related to foreign activity, including the FBAR and the Foreign Account Tax Compliance Act (“FATCA”),- Virtual currency transactions, and
The sharing economy, including income from home rentals, driving services, or other peer-to-peer services. If you are not conversant with the tax implications of the sharing economy, readShort Term Rentals, The Sharing Economy and Tax.
6
Evaluate the effect of hosting services on the firm’s independence with respect to attest clients.
Hosting Services
, ET 1.295.143 which became effective July 1, 2019. A firm’s independence may be impaired if it is a “host” of client data. The interpretation defines “hosting” to mean it is the sole source of information necessary for the client’s records to be complete. See the Risk Alert Being a Good Host Can Cause Liability Concern – Impact of Ethics Interpretation, Hosting Services
, and the article How Data-Hosting Services Affect Independence
for more information. 7
what to do now … before the big rush
7
steps to prepare the firm for tax season
Guide | Tax Season Checklists
Table of Contents
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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

7 steps to prepare the firm for tax season

4 ways to help staff prepare for tax season
What to do now … before the big rush

5 data security concerns to address

3 items to memorialize in a control log to help avoid missed deadlines
4 things to remember when testing tax software

11 items to cover in a staff kick-off meeting


9 things that should be done for each client

2 ways to plan for deadlines and help avoid careless errors

2 keys to survival
What to do during tax busy season