1120-S filings are also maintaining a similar pace to the 03/01 data, with a 0.7% average filing pace gap for all four observation points between the 03/01 and 03/15 data. Also, as with partnership (and individual) returns, in the 2020 tax filing season, we saw a sudden jump in the filing numbers at the 04/01 update. Hopefully, we see the same jump in the 2021 04/01 update.
Tips for a Successful Filing Season: Practice Proactive Client Communication
With the recent changes and media coverage regarding the various Act provisions and filing changes, clients want to know how the changes will affect them. Because of the number of changes and the continued uncertainty around the tax season, you and your staff are no doubt fielding client inquiries right as peak busy season compression hits.
Rather than wait for your clients to come to you with questions, why not save yourself some time and instead reach out proactively?
Whether you know it or not, your firm management, tax preparation, and workflow solutions have the information you need to understand how the American Rescue Plan Act will affect a potential client. By reviewing client information and splitting them into categories based on how the recent changes affect them, you can communicate with each client more effectively.
Yes, I know that manually reviewing each client organizer and return isn’t possible during peak season. But you don’t need to– with predictive intelligence tools like CCH Axcess iQ the data you already have can identify which clients need a quick email reviewing the recent changes and which clients may need a phone call to go over the Act’s effects in more detail.
This update was a lot of “same as last period,” but based on the previous year’s data, we know that the 04/01 period tends to set the curve for the rest of the season. Hopefully, on 04/08, when we report on the 04/01 data, we will see a significant jump in completed returns.
In the meantime, don’t forget to take advantage of our free tax-season resources!
In addition to the Tax Resource Center I discussed in the 03/01 update, we are tracking and updating state and federal filing updates on our post, Latest Impacts to 2021 Tax Season Filing Dates.
Check back to these pages regularly for insights and free resources to help you make the 2021 tax filing season successful.