Bookkeeping

Tax Changes/Implications

When I am dealing with clients on a daily basis, they often are very worried about taxes and how to understand them. I can fully understand their questions but often I am seeing changes in tax codes that I am not always able to keep up with. When helping clients understand tax changes, what is a way that I can keep more up to date myself to be able to answer their questions?

For instance, one client I have is a small contracting company and is often late to the ball game with taxes. How can I ensure that I am applying the correct changes at the correct times?

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  1. 12 Answers

    A great way to stay ahead of the latest tax laws is to read regularly. Have a good grasp of the business your clients operate in, and do your research about specific codes that apply to them. Listen to your client to hear updates about their business. Changes in business can mean tax implications (for example: restructuring of a business/sale or purchase of an asset).

    Taxes are a hot topic for mostly every client, it could be helpful for you to take continuing education (CPEs) specifically for Tax Updates. These courses usually offer the latest tax changes and break down complex treatment of hot topics. (The PPP & EIDL will for sure be hot topics for all of our clients this year related to the 2020 tax year.) If it’s a live or virtual course, you can ask the questions that your clients are raising.

    If you don’t already have a network of CPA/Tax Preparers, consider connecting with some folks over on Linkedin or Facebook CPA Groups. I find people generally want to be helpful, especially if you are asking about something that interests them.

    A place I visit frequently is the IRS website (https://www.irs.gov/newsroom/news-releases-for-current-month). Here you will find specific changes highlighted as well as guidance. Another thing to keep in mind is the local tax laws. (You will want to visit the website of the city and state, as well.)

    A few other good resources I subscribe to that offer updates & host events are: AICPA, myCPE, CPE Inc., NASBA

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