MNCPA members share top concerns for upcoming tax season
January 4, 2022 |
With so many new tax law changes in the past two years, it’s no surprise that questions and issues related to those changes are top of mind for CPAs.
In the recent MNCPA Tax Survey of members, we asked what concerns you most about this tax season. Of the 170 responses we received, there were some common themes. Among them were concerns about ongoing and retroactive tax law changes, timeliness by the Minnesota Legislature, lack of conformity between federal and state tax laws, confusion over COVID-related measures and excessive workloads.
One respondent said, “Workload compression — the past two busy seasons never ended and were the most complex in my 20-plus years.”
Another shared, “The unknowns about legislation at the federal level and in Minnesota, and the potential of things being retroactive. It’s hard to plan/advise under these circumstances, and it’s hard for software providers to be ready for practitioners to begin filing with all of the changes.”
Aside from concerns about ongoing and retroactive federal and state tax law changes, employee staffing, retention and burnout also ranked near the top.
“Not having enough, well-trained staff to ensure a smooth workflow,” according to one respondent. “We will be working a lot longer hours, on more files than ever. We lost four people last year and are looking at losing huge talent next spring. The profession really needs more students to take accounting for their major and enter the profession.”
Other concerns survey respondents expressed include:
- Getting the work done by April 15.
- Form 7203 and Schedules K-2 and K-3.
- Pass-through entity tax complexity.
- Interfacing with clients in person.
- IRS and Minnesota Department of Revenue backlog.
- Taxpayers who have not yet received their 2020 refunds and the various stimulus payments that should have been received.
- Questions pertaining to COVID-related tax laws changes, such as the Advanced Child Tax Credit, Paycheck Protection Program loan forgiveness and stimulus payment reporting.
- Clients failing to retain necessary paperwork from the IRS regarding the Advanced Child Tax Credits and the third stimulus payment.
- Continuing to improve processes and incorporate technology and web-based programs to assist with the hybrid work model.
Despite noting a few specific concerns about the upcoming season, one respondent also expressed optimism that this busy season will be better than the last.
“Honestly, after last tax season, I think we’ve seen the worst. It can only go up from here!”
Topics: Workplace Trends, MNCPA Programs & Activities
