Bracing for Tax Season 2022



According to CPA Practice Advisor, tax preparers will have much to contend with during the 2022 tax season. Complexities and potential pit falls associated with new tax provisions (with more likely on the way) present unique challenges to CPAs and their clients, meaning this tax year will once again be anything but normal1. So, how does one prepare for that kind of environment?

According to experts, keeping track of information is among the herculean tasks CPAs and tax professionals must undertake well before tax season begins. Encourage your clients to begin gathering their documents now, with special attention to their stimulus numbers, unemployment benefits and child tax credit payments. Preparers will also need to track changes in the tax code that resulted from the American Rescue Plan Act (ARPA), including economic impact payments, changes made to the child tax credit (CTC) and dependent care credit, the tax-exempt portion of unemployment benefits, and the Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidies, CPA Practice Advisor reports1. Recent reports suggest that more tax provisions could be on the way before the end of the year, so keep an ear to the ground on that front as well.

Aside from accounting for changes to tax law, ensuring an efficient process is in place prior to the end of the year is also important. While tracking legislative changes are certainly part of a good tax process, evaluating staffing needs and making determinations regarding outsourcing are equally so, CapActix suggests. Using prior year busy season statistics, practitioners can estimate their staffing needs for 2022. In the event that resources fall short, outsourced teams can help bridge the gap2. Even if the plan is to forgo outsourcing, knowing where you can find that assistance and establishing some familiarity with each option beforehand will help you remain resilient if things…go a little sideways. Remember, the devil is in the details when it comes to process, so ensuring the little things are buttoned up well ahead of schedule (updating PTINs, meeting licensure requirements, etc.) will make tax season in your practice run all the more smoothly.

Finally, despite the IRS maintaining their April 15 deadline for 2022, there are countless reasons this tax season could continue in the same vein as the previous two – busier than usual, complex, stressful. Of course, one may argue that tax season is always stressful, but words like burnout and fatigue are more prevalent than ever in just about every industry, and accounting is no exception. It makes sense then, as part of preparing for busy season, that making time for mental health is also important. Strategies for keeping leaders, team members and oneself motivated will almost undoubtedly come into play at some point in the coming months. Spend some time thinking about how you, your colleagues and staff are going to stay motivated and determine what activities or best practices can be employed to ensure everyone stays not just productive, but healthy and happy even during crunch time.

Looking for more ways to prep for the 2022 tax season? Check out our upcoming Tax Season Updates, discounted for early registration. Current offerings include Tax Season Updates for individuals and businesses and multiple sessions dedicated to updates in tax forms, key compliance issues, practical implementation strategies based on recent developments and more! Check out the MICPA CPE store for more details or to register now. 

  1. Berry, Ken. “Will the 2022 Income Tax Season be Normal?CPA Practice Advisor. 27 Sept. 2021. Accessed on 27 Oct. 2021.
  2. Tax Tips for 2022 Tax Season: Make Your Tax Process Effortless.” CapActix. 2021. Accessed 27 Oct. 2021. 

Source: MICPA

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