Arial view of highways
Tax & AccountingMarch 20, 2023

Overcome these complex return roadblocks

Accountants are accustomed to complexity. But when it comes to busy season, managing complexity takes on a whole new importance. Since every minute counts, the ability of a firm’s tax software to handle complexity is a major factor in a firm’s profitability. When selecting tax software, it’s important to understand how the software handles these complex situations.

Schedule K-1. Multiple K-1s continue to add complexity to returns for Partnership, S Corporation and Fiduciary returns. A system that can link K-1 data from these entities to related returns (including Individual 1040 returns) can save time and improve accuracy.

Multi-State Returns. Multi-state returns can be a headache, but firms can simplify this process by using comprehensive software with powerful multi-state features. Choose a software with the most comprehensive offering of forms and calculations. And look for software that offers the ability to import apportionment data from a spreadsheet and easily scroll through all relevant states.

Cryptocurrency Gain/Loss. Cryptocurrency has been a hot topic in tax circles lately, but this fast-changing area is still developing. Cryptocurrency tax software like CoinTracker or Ledgible can help firms manage large numbers of crypto transactions. These systems can integrate with tax return software to automatically import gain/loss data.

Depletion Data. For firms with specialties in certain niche industries like oil and gas, managing depletion information is a critical function that is not always supported by less comprehensive tax software. When entering depletion data, it’s often most convenient to work in a spreadsheet and then import the data to the return. Data templates for individual, partnership, corporation, s corporation and fiduciary entities can keep the data formatted in a way that will make this import process easier.

Depreciation. Managing large numbers of fixed assets adds complexity for many clients. A fixed assets system that integrates with the firm’s tax software will save a lot of time and reduce data entry. Depending on the situation, a firm may import depreciation totals only, or they may choose to import asset details, choosing either current year acquisitions, current year dispositions, both current year acquisitions and dispositions, or all assets.

CCH Axcess TAx
Sign up for a customized product demo
Take advantage of an intelligent, scalable and fully integrated tax preparation, compliance and workflow solution that’s been developed specifically for the cloud and is suitable for firms of all sizes.
There are many other situations that will make a return more complex than average. Firms may use a complexity score to identify returns with complexity factors like those listed above or additional situations like net operating loss, foreign income, basis, at-risk limitations, and QBI. When firms can identify these situations early in the process, they can ensure that the right staff with the appropriate expertise works on the return. 
Product Marketing Manager, Tax

Aimee Hall is a product marketing manager for Wolters Kluwer Tax and Accounting US, focusing on the professional market. In this role, she is responsible for leading the marketing strategy for tax software products including CCH Axcess Tax, CCH ProSystem fx Tax and ATX Tax. She joined Wolters Kluwer in 2006 and lives in the Chicago suburbs.

Back To Top