june2021 - 23

FEATURE
-Mortem for 2021
WHAT WENT WRONG
The IRS whirlwind of 2020 blew into
the 2021 tax season, creating one of
the most brutal tax seasons ever for
many accounting professionals.
DIRE BACKLOG AT THE IRS
Although IRS employees continue
to work tirelessly to manage the
agency's workload, it's been an uphill
battle to deal with:
* Pandemic-related staffing issues
that crippled the agency's customer
service capabilities
* Outdated technology
* A backlog of unprocessed paper tax
returns and correspondence related
to 2019 returns
* Congressional mandates to administer
Economic Impact Payments (EIPs)
* Implementation of multiple provisions
of the stimulus legislation
* The high volume of 2020 tax returns
needing manual processing
As a result, taxpayers and their
advisors continue to deal with longer
refund delays and longer wait times
on the IRS's toll-free numbers.
According to the Taxpayer
Advocate Service, as of April 2021,
the IRS had more than 29 million
returns on hold for manual processing,
including:
* 8 million individual returns in
suspense await ing review and
manual processing - mostly due to
Inconsistencies between the IRS's
record of EIPs and the recovery rebate
credits reflected on the taxpayer
returns or taxpayers who elected the
2019 " income lookback " to calculate
the earned income tax credit or the
additional child tax credit
* 5.3 million individual paper returns
from 2019 and 2020 awaiting manual
processing
* 4.7 million individual returns with
processing errors or fraud identification
issues requiring responses from
taxpayers
* 11 million business and other returns
awaiting manual processing
In an Annual Report to Congress,
National Taxpayer Advocate Erin
M. Collins said, " the pandemic has
pulled back the curtain on significant
limitations the IRS faces with technology
and with its workforce. "
TWO NEVER-ENDING
TAX SEASONS
In March 2020, the Treasury Department
and the IRS announced that the
deadline for filing 2020 individual
federal income tax returns would
be automatically extended from April
15, 2021, to May 17, 2021. Similarly,
the deadline for filing 2019 returns
was automatically extended to July
15, 2020.
While the change brought some
By Richard Laviña
much-needed relief for taxpayers
struggling to meet
the original
deadlines, it didn't help accounting
professionals who were already
stretched to the limit. Because the
Treasury did not extend the deadline
for first quarter 2021 estimated tax
payments, preparers still had to put
in the work of preparing 2020 returns
to advise clients on how much they
needed to pay for Q1.
WHAT NEEDS TO CHANGE
While Congress has provided a modest
boost in IRS funding in the past
few years, more will be needed to
adequately fund the agency in order
to upgrade its technology, hire and
train more customer service and
enforcement personnel.
Even if President Biden gets the
$80 billion in IRS funding he mentioned
in his address to Congress,
seeing real results will take time. In
the meantime, consider taking steps
to prepare for a better busy season
next year.
IMPROVE FIRM PROCESSES
AND TECHNOLOGY
Once the dust settles, hold a postmortem
with your team to discuss
what went right and what went
wrong in your firm. Discuss roadblocks
your team encountered while
working from home or in the office
and what you can change to make
tax season smoother in the future.
Look into technology that can
automate part of the process, such as
collecting client documents, inputting
data, delivering tax returns, or
collecting e-filing signatures.
Initiatives that consider both
processes and technology can help
you get work out the door faster, better
serve your clients and increase
revenues.
SPEND MORE TIME DOING
WHAT YOU ENJOY
If the past two tax seasons have left
you and your team feeling burned
out, look for ways to address the
cause of burnout, rather than just
treating the symptoms. Recovering
from burnout isn't as simple
as taking time off in the summer
because burnout is typically a systemic
problem caused by low levels
of autonomy, lack of support, and
spending too much of your workday
on tasks that you don't enjoy. We've
all seen the spike in two-week
notices that come in during the
fourth quarter of each fiscal year,
just before employees are hit with
yet another busy season.
Find a way to spend more time
doing the aspects of your job you're
passionate about and look for ways to
automate, delegate or outsource the
rest. You may not need full-time help
year-round, but you can supplement
your team during busy season, and
even into extension season, to reduce
the burden on you and your team.
Every tax season has its unique
challenges, but after back-to-back
busy seasons made even more stressful
by the pandemic, many accountants
have reached their wit's end.
Use that motivation to make changes
that will improve your practice and
decrease your stress level no matter
what new challenges the next busy
season brings. ■
Richard Laviña is the CEO
and co-founder of consumer,
small business and enterprise
SaaS accounting-tech company
Taxfyle.
JUNE 2021 ■ www.CPAPracticeAdvisor.com
23
http://www.CPAPracticeAdvisor.com

june2021

Table of Contents for the Digital Edition of june2021

From the Editor: On Being a Cook and Accountant
The Leadership Advisor: Better Advisory Through Genuine Connection
AICPA Proposes New Quality Management Standards for Firms
From the Trenches: Client Experience for Today: Personal Tax Advisory
Strengthen Your Client Relationships with Financial Planning
The Labor Law Advisor: Problem Employees: Develop or Dismiss
The Millennial Advisor: FOMO
The Staffing & HR Advisor: 9 Ways Accountancy Consultants Can Benefit Small Businesses
Marketing Your Firm: How to Use Polls to Measure Your Clients' Needs
Apps We Love: Reference Apps
Using Agile Methodology on The Digital Transformation Journey
AICPA News: A round up of recent association news and events.
A Covid Tax Season Post-Mortem for 2021
2021 State of Accounting Staffing
Stuck in the Middle
3 Tips for Finding Remote Staff During Covid
The ProAdvisor Spotlight: QuickBooks Online Innovations: What You Need to Know
Finance Leaders Depend on Business Intelligence to Drive Change
A Guide to Earning and Managing CPE Credits
Is a Niche Marketing Strategy Possible for Small Firms
Post-Pandemic Priorities: Reassess Your Target Markets
What to Know When Measuring Your Team's Productivity
Bridging the Gap: 6 Essential Measurements of Firm Culture
june2021 - 1
june2021 - 2
june2021 - 3
june2021 - From the Editor: On Being a Cook and Accountant
june2021 - The Leadership Advisor: Better Advisory Through Genuine Connection
june2021 - AICPA Proposes New Quality Management Standards for Firms
june2021 - 7
june2021 - From the Trenches: Client Experience for Today: Personal Tax Advisory
june2021 - 9
june2021 - 10
june2021 - 11
june2021 - Strengthen Your Client Relationships with Financial Planning
june2021 - 13
june2021 - The Labor Law Advisor: Problem Employees: Develop or Dismiss
june2021 - The Millennial Advisor: FOMO
june2021 - The Staffing & HR Advisor: 9 Ways Accountancy Consultants Can Benefit Small Businesses
june2021 - Marketing Your Firm: How to Use Polls to Measure Your Clients' Needs
june2021 - Apps We Love: Reference Apps
june2021 - Using Agile Methodology on The Digital Transformation Journey
june2021 - AICPA News: A round up of recent association news and events.
june2021 - 21
june2021 - A Covid Tax Season Post-Mortem for 2021
june2021 - 23
june2021 - 2021 State of Accounting Staffing
june2021 - Stuck in the Middle
june2021 - 3 Tips for Finding Remote Staff During Covid
june2021 - 27
june2021 - The ProAdvisor Spotlight: QuickBooks Online Innovations: What You Need to Know
june2021 - Finance Leaders Depend on Business Intelligence to Drive Change
june2021 - A Guide to Earning and Managing CPE Credits
june2021 - 31
june2021 - Is a Niche Marketing Strategy Possible for Small Firms
june2021 - Post-Pandemic Priorities: Reassess Your Target Markets
june2021 - What to Know When Measuring Your Team's Productivity
june2021 - Bridging the Gap: 6 Essential Measurements of Firm Culture
june2021 - 36
https://www.nxtbook.com/endeavor/cpapracticeadvisor/december2022
https://www.nxtbook.com/endeavor/cpapracticeadvisor/octobernovember2022
https://www.nxtbook.com/endeavor/cpapracticeadvisor/august2022
https://www.nxtbook.com/endeavor/cpapracticeadvisor/june2022
https://www.nxtbook.com/endeavor/cpapracticeadvisor/april2022
https://www.nxtbook.com/endeavor/cpapracticeadvisor/december2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/november2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/october2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/september2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/august2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/july2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/june2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/may2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/april2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/march2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/february2021
https://www.nxtbook.com/endeavor/cpapracticeadvisor/december2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/CPA_Practice_Advisor_November_2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/october2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/september2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/august2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/CPA_Practice_Advisor_July_2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/CPA_Practice_Advisor_June_2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/may2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/CPA_Practice_Advisor_April_2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/CPA_Practice_Advisor_March_2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/february2020
https://www.nxtbook.com/endeavor/cpapracticeadvisor/december2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/november2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/october2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/september2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/august2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/july2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/june2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/may2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/april2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/march2019
https://www.nxtbook.com/endeavor/cpapracticeadvisor/february2019
https://www.nxtbookmedia.com