Even a minor issue can cost hours, delay returns, and frustrate clients. That’s why customer support is one of the most critical (and overlooked) factors when evaluating tax preparation software.
Here is some advice on what to look for:
1. Reliable Response Times
If you’re facing an e-file rejection, software glitch, or compliance question, waiting hours or even days for help doesn’t help you.
What to look for:
Extended support hours during peak season
Minimal hold times
Multiple contact channels (phone, chat, email)
Why it matters:
A delay in resolving issues can ripp...
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IRS Late Filing & Payment Penalties: What Tax Professionals Need to Know
It remains essential for tax professionals to stay current on IRS penalties for late filing and payment. A clear understanding of these penalties helps you guide clients effectively and minimize unnecessary financial consequences.
Failure-to-File Penalty
If a taxpayer does not file their federal tax return by the due date (typically April 15), the IRS may impose a failure-to-file penalty.
Rate: 5% of unpaid taxes for each month (or part of a month) the return is late, up to a maximum of 25%
Minimum Penalty: For returns filed more than 60 days late, the minimum penalty is th...
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Missing Tax Docs? File Now or Fix It with Amended Returns Later
Every filing season, tax preparers encounter clients who are missing key documents such as W-2s, 1099s, or other income statements. While the IRS provides general guidance, tax professionals need a more strategic approach: balancing compliance, deadlines, and client expectations.
Here’s how to handle missing tax documents and when to file an amended tax return .
Start with Due Diligence: Confirm What’s Actually Missing
Before taking action, verify whether documents are truly missing or simply delayed. Encourage clients to:
Check online payroll portals or financial accounts
Confirm...
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