survey: tax season launches with a whimper

tax practitioners say they’re ready for anything. and they may get it.

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by rick telberg
卡塔尔世界杯常规比赛时间 research

despite it all. despite a brand new tax law with last-minute final regs. despite a government shutdown that crippled the irs – and the threat of another one in a couple weeks. despite confused, price-sensitive clients, and the usual software glitches.

more busy season: 16 big questions for tax season  |  survey: tax accountants alarmed by tcja & shutdown  |  shutdown: what to tell tax clients during “the lapse”   |  beware the leeches and consultants   |  charitable giving under tcja  |  why padding tax deductions is a risky proposition  |  handling the delay in 199a regs |  survey: clients rush for tcja answers |  yes, home equity loans may still be deductible |  portability: sharing the estate tax exemption |  9 secrets to getting irs penalties removed  |  the cure for commoditization  |

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despite it all, tax accountants are going into busy season 2019 brimming with confidence – if doing at least as well as the last year can be considered confident, according to pre-season results from the 2019 busy season barometer.

so tax season isn’t starting with a bang, but maybe with a whimper, as professionals approach the next 70-odd days with at least cautious optimism.

the tracking poll, now in its 15th year, shows about 30 percent of practitioners are expecting little or no change from last year, with those predicting “somewhat better” and “somewhat worse” at a dead tie at 26 percent each.

to be sure, far more are expecting a much better year (about 11 percent) than a much worse year (about 7 percent).

we should be glad that “fear” or “afraid” came up only a few times.

fear of the unknown

fear of what? the unknown. the possible penalties. reactions to higher fees. an onslaught of confused clients. and all the questions that the irs seems so reluctant to answer.

in new york, michael williams of schulman lobel llp, whose firm has a presence on both east and west coasts, expects a somewhat worse year for two reasons. one is that “we, as an industry were not afforded the same breaks as others.” the other is that for clients, “it’s hit or miss, some are doing better, but others are doing far worse when it comes to the total tax bill on similar income.”

alice alexander, a senior accountant with alexander accounting & tax service group, inc., expects a somewhat better year, telling us, “clients are calling earlier than usual to set up appointments due to the uncertainty of what the outcome of tax returns will look like in view of the complete overhaul of the tax code and the government shutdown.”

itching to get underway

innumerable comments expressed similar concerns: more clients coming in earlier with more questions due to the overhaul of the tax code. for some, that translates into a good thing: more work, more revenue, more profit. for others, it means frustration and fear as they itch to get the season underway.

joe eckelkamp, of eckelkamp and associates, is in the hopeful-but-worried camp.

“many new clients, including monthly clients, and tcja is adding revenue,” eckelkamp says. “however i remain very concerned about workflow given the new complications.”

laura anne plum, of plum & company, p.a., in sarasota, fla., also manages to be optimistic in the face of what’s to come.

“tcja, particularly 199a, is creating confusion,” she says. “finally final regs, but the learning curve to implement is steep. software will need to be vetted carefully. given the changes, we expect to increase fees for affected businesses. hopefully that will be the silver lining.”

james m. lewis of mccullough & associates, llc, of springfield, mo, seems a little concerned about what his clients are going to think.

“they don’t know what they don’t know,” he warns. “i think they’re going to be surprised at the fee increase we have to pass on due to the complicated nature of the changes. we’ve sent out a letter advising them that their fee may increase due to the complexity.”

for all the above reasons, the busy season barometer predicts a change in the weather. if the government remains open and the irs gets its act in gear, the influx of new clients and possibly higher fees could add up to a very productive, if hectic, busy season.