outlook 2023: irs hires will add pressures

incentives will bring new opportunities.

by julio gonzales
the rosenberg map study

the current tax changes from the inflation reduction act include 87,000 irs hires to bolster tax return audits for small business.

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i believe the additional irs agents will create significant pressure on accounting firms to increase staff and costs associated with client audits. this will create pressures to take advantage of tax credits and incentives, but firms must do this with third-party providers with impeccable reputations.

this year we have seen court cases that have impacted specialty tax with independent providers that did not meet the scrutiny of the irs. the accounting profession will need to conduct more due diligence in who they introduce to clients in specialty tax and be instructive to clients who proactively try to hire these consultants independently.

the new tax code changes in energy tax credit and incentives will create many opportunities for the accounting firms that can quickly identify clients and prospects that are good candidates for all the significant tax law changes and for real estate investors who build or retrofit buildings energy-efficiently.

the trend of significant tax code changes continues as we are set to have our fourth significant set of tax changes since 2017. constant tax change, with the inevitable delay in interpretation of the new tax laws by treasury, creates continued challenges to our communities. this coupled with ongoing labor pressures and competitive silicon valley tax solutions makes being resourceful and delivering consulting services more important than ever. it has become more important than ever to not only know the tax code at a high level but also identify tax products that can help lower a client’s tax liabilities.

i think we will see accounting firms become better in the areas of servicing family offices, understanding the importance of tax planning to include investments with tax benefits and to also incorporate charitable tax strategies to help family offices meet their philanthropic needs more tax-efficiently.