The coronavirus pandemic promises to have as big an impact on next year’s tax season as it did this year. Start getting prepared with this report, which offers insights on the latest trends in tax law, dealing with the IRS, staffing, technology and more.
Still reeling from the unprecedented events of 2020, tax preparers are bracing for an especially complex tax season in 2021 due, in large part, to COVID-19-related tax issues and revamped business operations. This year, perhaps like no other, preparation is key.
As firms head into the upcoming tax season (even as the Oct.15 end of the last one remains fresh in their minds), there’s no doubt that managing client expectations and ensuring strong collaboration among both staff and clients in today’s remote work environment will be especially important.
This tax season, there may be surprises in store for some clients. Between the rise in unemployment and the implications of the CARES Act, managing client expectations and helping them with year-end tax planning is especially important.
For many business clients, one area of focus is the tax treatment of loan forgiveness under the Paycheck Protection Program. An area of hot debate is the fact that the IRS Notice 2020-32 denies borrowers the ability to deduct the same expenses that qualified them for the loan forgiveness.