
Guide | Tax Season Checklists
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Table of Contents
What to do now … before the big rush

7 ways to help clients prepare

4 steps to review e-file requirements and processes

5 ways to update engagement letters

3 must-do’s to review client acceptance and continuance

7 steps to prepare the firm for tax season

5 data security concerns

4 ways to assist staff in preparing for tax season
What to do during tax season
13 items to cover in a pre-tax season staff meeting


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


9 tasks that should be perfomed for each client

3 ways to plan for deadlines and help avoid careless errors

2 keys to survival
How to Address COVID

4 COVID-related items to keep in mind
what to do now … before the big rush
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Because clients don’t live and breathe the tax law as CPAs do, they may expect you to inform them of planning opportunities and tax traps. With time at a premium, it’s often difficult to do this during tax season. Take the time now to speak with clients.
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Inform clients of significant tax law changes since last tax season. These changes may include guidance related to the Coronavirus Response and Relief Supplemental Appropriations Act, Coronavirus Aid, Relief, and Economic Securities (“CARES”) Act, Families First Coronavirus Response (“FFCRA”) Act, American Rescue Plan Act, the Advanced Child Tax Credit, virtual currency, and the third round of Economic Impact Payments (“EIPs”). Retain a distribution list of such communications (e.g., newsletters), including the dates transmitted, and document that the client was informed of these changes.
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Identify clients who have made investments in aggressive tax planning strategies. Include those identified on the IRS Dirty Dozen list, such as syndicated conservation easements and micro-captive insurance companies. Be alert for strategies not yet identified by the IRS. For ideas on what to look for, read the article Avoiding Fallout from Aggressive Tax Strategies. Document research performed and any related client discussions.
Alert clients of other filing obligations,
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Consider the impact of remote employees and the South Dakota v. Wayfair, Inc. (“Wayfair”) decision on clients’ businesses. COVID-19 has changed where many people work, potentially creating nexus in new states for clients’ businesses. Risk Alert: “COVID Homes” Create Professional Liability Risk for CPA Firms provides guidance.
Have all clients considered the Wayfair decision? If not, consider leveraging the AICPA’s Wayfair Client Notification Letter to start the discussion. If you believe the decision may affect your clients, schedule a meeting to discuss the impact and follow up in writing to document the discussion.
Contact clients to schedule appointments prior to year-end.
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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). 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 timely complete the return, and an extension request may be necessary.
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Have your clients changed their partnership agreements for the Bipartisan Budget Act (BBA) of 2015 Centralized Audit Regime? Partnership returns currently under audit are now subject to these rules. To learn more, review the IRS BBA Centralized Partnership Audit Regime resource.
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