With the convergence of multiple layers of tax legislation and IRS guidance since 2017, this year’s filing season has the potential to confuse tax preparers as well as the clients they serve. Even for those who follow legislation day in and day out, things can get complicated.
For example, the Paycheck Protection Program was initially introduced in April, then changed in June and again in December. “It’s one program but it’s been changed twice,” observed Roger Harris, president of Padgett Business Services. “If you haven’t kept up, you can be two bills behind.”
With that in mind, a panel of tax experts convened by Accounting Today believes the following areas warrant special attention during tax preparation. Many may require the amending of prior-year returns to take advantage of a particular tax break.
(The panel includes Annie Schwab, tax services manager for Padgett Business Services; Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting; Barbara Weltman, author of “J.K. Lasser’s Small business Taxes 2021;” and Roger Harris, president of Padgett Business Services.)