TAXATION SERVICES - ORLANDO

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Navigating Tax Season: Insights and Tips from Accounting Professionals

The tax season is here, and tax practitioners are gearing up to tackle the challenges that come with it. While this season presents its own unique set of challenges, practitioners have also had to adapt to changing tax laws and regulations that affect how they prepare tax returns. One of the significant changes for tax year 2021 is the extension of the child tax credit, which has been expanded and made available to more families. However, this expansion also means that tax practitioners need to be well-versed in the new rules and forms required to claim the credit correctly.

Another change for tax year 2021 is the increase in the standard deduction. Taxpayers who choose to claim the standard deduction instead of itemizing deductions may benefit from the increased amount.

In addition to these changes, tax practitioners must also navigate the ongoing pandemic and its effects on taxpayers' finances. Many taxpayers have experienced job loss or reduction in income, which can affect their tax liabilities. Tax practitioners should be prepared to offer guidance on the various relief programs available to taxpayers, such as the Paycheck Protection Program, the Employee Retention Credit, and the Economic Injury Disaster Loan. Another challenge this tax season is the increase in identity theft and fraudulent tax returns. The IRS has implemented various measures to combat this issue, such as delaying the start of tax season and adding additional security features to tax forms. However, tax practitioners must also do their part by ensuring they have proper security measures in place to protect their clients' personal and financial information.

To help practitioners navigate these challenges, the IRS has provided various resources, including webinars, publications, and guidance documents. Tax practitioners can also stay up- to-date on the latest tax news and developments through professional organizations such as the American Institute of Certified Public Accountants (AICPA) and state societies. The tax season also presents an opportunity for tax practitioners to deepen their relationships with their clients. By providing valuable guidance and advice, practitioners can build trust and demonstrate their expertise, which can lead to increased client retention and referrals.

However, to achieve this, tax practitioners must focus on providing exceptional customer service. This includes being responsive to clients' needs, communicating clearly and effectively, and being proactive in addressing potential issues or concerns. With the ongoing pandemic, practitioners should also be prepared to offer virtual services, such as video conferencing and document sharing.

In conclusion, the tax season presents various challenges for tax practitioners, but with proper preparation and resources, they can navigate these challenges successfully. By staying up-to- date on the latest tax laws and regulations, offering valuable guidance to clients, and providing exceptional customer service, practitioners can not only survive the tax season but also thrive in it.