the tax season from hell enters its final stages.
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by beth bellor
卡塔尔世界杯常规比赛时间 research
tax professionals are entering the final stretch of a second crisis-wracked busy season with only a precious few reporting better-than-year-ago metrics so far, according to the 20th annual 卡塔尔世界杯常规比赛时间 busy season tracking poll.
more: pros surge ahead in tax prep | tax pros handle 53% of e-filings | tax pros hold their ground | pros tackle 49% of e-filed returns | survey: tax season swings into the red | another tax season from hell?
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meanwhile, the spread between tax professionals’ gains and diyers’ losses increased from 9.1 percentage points in the last reporting period to 12.2 points in the lastest, according to data reported by internal revenue service for the week ending april 23, the latest available.
the agency had received 116.1 million individual income tax returns, down 4.7 percent from the same period in 2020 when tax season began 18 days earlier. it had processed 105.3 million returns, down 4.3 percent, pegging its processing rate at 90.7 percent.
some 49 percent are calling 2021 “worse” than 2020, with about 16 percent holding steady, and 36 percent reporting a “better” year, including 10 percent enjoying a “much better” season.
the reasons are as clear as they are painful.
in cupertino, calif., nationally known tax teacher claudia hill cites the “confusion as to irs guidance crazy due dates,” and she wonders what the irs was thinking when they decided on rules requiring “estimates for 2021 due before the 2020 return?”
brian metzger at gga cpas in hartwell, ga., explains, “last year included an extension thru july 15 which we needed. but this year’s may 17 extension has compressed our schedule, becausewe are still dealing with ppp, new laws, etc.”
“the change in the tax laws midseason caused havoc,” says montclair, n.j., tax pro christinia hall.
“between helping clients apply for ppp, getting forgiveness of ppp, and keeping up with multiple tax bills to absorb (some of the provisions being made retroactive and being passed after tax season was in full swing,” adds kevin holmes, a cpa in the woodlands, texas. “it’s too much to try to keep up with.”
“the delayed start to tax season, plus changes after the start, has put more pressure on the tax professional community,” says robert taylor in high point, n.c.
on the other hand, ken sorge in madison, wisc., says implementing new software is part of the reason for improved operations this year. “gross income is lower,” sorge says, “and net income is higher.”
tim watson at benford brown might agree, saying, “we have increased tax revenue by a significant amount. however, the workload is compressed into a smaller time frame which is causing significant scheduling and capacity issues for all areas of the firm.”
bruce claasen at white & claasen in wichita, kan., cites “delays in getting data from clients and getting tax returns completed.” adding, “continual changes in law and guidance, and business client needs that took focus away from tax work.
but there’s not much you can do about cranky clients. “people are really crazy this year and unreasonable,” according to lesley lewis at lewis and co. cpas in cedaredge, colo.
e-filings
electronic filings at 109.4 million had nearly caught up to 2020’s pace, down only 0.6 percent.
tax professionals of all stripes handled 58.5 million e-filings, up 5.4 percent, while self-preparers took a 6.8 percent dip to 50.9 million.
bytes clearly rule over paper, with 94.2 percent of returns filed electronically, and the pros captured 53.5 percent of that market.
website visits
visits to irs.gov at 1.2 billion are up 35.5 percent.
refunds
total refunds numbered 77.7 million, down 8.4 percent, in the total amount of $222.9 billion, down 5.7 percent. the average refund of $2,870 was up 2.9 percent.
direct deposit refunds numbered 71.7 million, up 1.7 million, in the total amount of $210.7 billion, up 1.8 percent. the average direct deposit refund of $2,936 was up one measly dollar, statistically flat.
one response to “tax pros race to the finish line”
joseph hanlon, cpa
in 36 years, there is no doubt this has been the most overwhelming tax filing season; all extra data the irs is collecting, stimulus payments, ppp and other sba capital infusion plus debt forgiveness made this tax season a crazy event of taxpayer frenzy.