2021: Tax Season from Hell?

The Tax Season from Hell: What’s the word? Join the survey. Get the answers.

By CPA Trendlines Research

The IRS is reporting that efiling is running 30 percent behind last year’s rate, with DIY’ers down by 22 percent and tax professionals trailing year-ago by 39.7 percent.

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Among the accountants reporting more problems this year, the comments are stark:

• Returns held up because of law changes regarding unemployment. Clients not letting us know about their stimulus payments they received in January 2021 and then having to contact them to see if they got a payment.
• Severe legislation on two occasions with retroactive changes signed in law in the middle of tax season.
• Stimulus requirements, tax planning with the RMD situation of 2020 vs. 2021
• We have to help clients with new PPP loans, understand stimulus check questions, get new grants available to small business, new tax rules, employee retention credit info, etc. etc. in addition to normal tax work this time of year.
• Professional staff sick with Covid, PPP #1, PPP#2, PPP Loan Forgiveness, Employee Retention Credit, IRS sending out erroneous Levy Notices since they have not opened the mail sent in October 2020 and cashed the check, American Rescue Plan 2020 tax provisions have to redo returns with Unemployment benefits since not taxable.
• Delay in the start of filing season from IRS
• PPP Loan Forgiveness Apps due in the middle of the season
• Questions of states treatment of PPP funds (California)
• New form 1099-NECPPP 2nd round confusion – including net vs. gross pay for Schedule C Filers and requirement documentation for eligibility.

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