COURTESY / PURDY POWERS & CO.
Richard Emerson, a CPA, is managing partner at Purdy Powers & Co. in Portland.
Updated: October 6, 2021
The pandemic has changed how accountants (and businesses) prepare for tax season
By Richard Emerson, Purdy Powers & Co.
Next spring will mark two years that we’ve been dealing with and working through the COVID-19 pandemic. While we’ve adjusted our work habits, we have learned a lot about how to maintain high service levels as we deal with the lack of in-person meetings.
First and foremost we did all we could to make certain our entire team is safe and stays healthy — that is job one. Remote work has become a business-as-usual function here but we do encourage employees to come to the office when they feel safe because for us, team work matters and doing it face-to-face with our vaccinated colleagues is more productive and much more enjoyable.
Like most businesses, we relied (and still rely) on remote meeting platforms like Zoom and Microsoft Teams to keep things running as smoothly as possible. Our clients’ ability to transmit tax information and correspond through email and our secure portal was and still remains mission-critical to our ability to do our best work for them. We also found that direct deposit and direct debit for IRS refunds and payments expedited the process and actually reduced our correspondence with the IRS.
We relied very heavily on e-filing (and still do) because not only do we see it as an essential function it expedites return processing and how quickly refunds were sent.
When it comes to mail or phone correspondence with the IRS, there’s one thing we learned and continue to learn: the meaning of the word patience. IRS workers are stretched very thinly and with postal slow downs and remote working their processes were and still are interrupted. So if you’re waiting to hear back from the IRS because you mailed your return or called them, don’t worry they will get to you.
Excessive refunds (large overpayments), should be managed and avoided since a number of refunds are still pending. Which means if you’re expecting a large refund, it may be adjusted by them when they get to it but you will get your refund.
If you have children, prepaid child tax credits are going to have a significant impact on your 2021 filing status to make certain you track them and if you have any questions about how you can maximize their tax benefits, speak to your accountant.
As it is with all businesses the pandemic has caused a lot of unexpected slowdowns and service interruptions and professional services firms like ours are no exception. So do your tax planning early and make certain you file as soon as you can for 2021. Yes, April 15 is way down the road but planning your taxes now will eliminate problems later.
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