![]() Also charitable contributions, probably doing those early in the year as well. Many people make gifts to family members directly or in trusts or otherwise. We always recommend that clients make gifts early in the year, in the first quarter, not earlier, meaning March and February. “Estate planning truly should remain on everyone’s mind, especially those who were unable to do anything over the past two years because of challenges due to COVID 19,” said Speiss. He is encouraging his clients to do estate planning, gift planning, charitable planning and investment planning early in the year as well. That’s really been the big push, to get started early.” We started in the fourth quarter of last year to obtain and accumulate 2021 tax information, not only just with compliance filing, but also for planning purposes. “We’re being very proactive in speaking to our clients. “We’re cautiously optimistic that tax season 2022 will be better than tax season 2020, which was the first year of the pandemic,” said Tim Speiss, co-leader of EisnerAmper's personal wealth group. Given all the problems last year in dealing with the various changes in tax law stemming from pandemic relief programs like the Paycheck Protection Program and Employee Retention Credits, multiple rounds of Economic Impact Payments, some practitioners think this tax season may at least be a little better. The goal is to reverse the equation and have most authorizations processed electronically.”Ī coalition of 11 tax and accounting professional groups, including the American Institute of CPAs, the National Association of Enrolled Agents, the National Association of Tax Professionals, the National Conference of CPA Practitioners and the National Association of Black Accountants, is urging the IRS to fix some of the problems they have been encountering, especially with automated penalty notices that have been going out despite the long backlog ( see story). “That means the IRS needs to manually process more than 600 authorizations for each authorization processed automatically. “Since the Tax Pro Account launched five months ago, fewer than 2,700 authorizations have been completed through the tool, while over 1.6 million authorizations were submitted that require manual processing,” Collins wrote. She predicts that online tools like the Tax Pro Account and online account will eventually reduce demand and decrease backlogs awaiting manual processing, but that will take time. This lack of transparency isn’t doing taxpayers or the IRS any favors, and it could be making matters worse.” “These delays impinge on taxpayers’ right to retain representation. “Although the IRS informs taxpayer representatives they should anticipate long processing times, practitioners who have submitted authorizations not processed may still wonder if theirs were lost or misprocessed,” Collins wrote. On Wednesday, she warned in a blog post of delays with processing Form 2848, Power of Attorney and Declaration or Representative, and Form 8821, Tax Information Authorization. ![]() ![]() The IRS is still dealing with a backlog of millions of tax returns, including 6 million unprocessed original individual returns (Forms 1040), 2.3 million unprocessed amended individual returns (Forms 1040-X), more than 2 million unprocessed employer’s quarterly tax returns (Forms 941 and 941-X), and about 5 million pieces of taxpayer correspondence as of late December, according to National Taxpayer Advocate Erin Collins in her report to Congress last week ( see story). Tax professionals are largely ready to forge ahead to help their clients get through it, but now they may have trouble getting power of attorney forms processed. The tax season that’s due to open when the Internal Revenue Service begins accepting tax returns next Monday is promising to bring a host of challenges.
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