Some major changes have taken place in the tax realm over the last few years. From the Tax Cuts & Jobs Act to the South Dakota v. Wayfair, Inc decision, the big changes and smaller shifts have been almost constant. What does all of this mean for this upcoming tax season? Here are a few industry leaders’ insights.
Jamee Dunn | Business Development – Partnerships at Avalara
The recent supreme court decision in South Dakota V. Wayfair and its implication on economic nexus are far reaching. So far, 30 states have enacted laws targeting out-of-state retailers in order to collect millions in sales tax revenue. Complying with new regulations is difficult, time consuming and labor intensive, especially if your process is manual. Technology is the key to streamlining the related tasks accurately and effectively.
Jennifer Warawa | Executive Vice President of Partners, Accountants and Alliances at Sage
With new tax legislation, emerging tech and changing client demands, the focus of the accounting profession has shifted. It will be time to focus less on the “busy season” and start thinking about how to move closer to the strategic counsel accountants of the future.
Joe Woodard | CEO of Woodard Events
Tax preparers will see a falloff in 1040 return preparation due to the Tax Reform Act of 2017. However, without a massive advertising/awareness campaign by companies like Intuit, Tax Slayer, and H&R Block in the first quarter of 2019, I predict accountants won’t see a significant decline in 1040 preparation work until tax year 2019. This provides tax preparers with a window to focus on reaching new clients in areas more insulated from the impact of the Tax Reform Act like the preparation of corporation and partnership returns, tax planning and tax representation.
Randy Johnston | Owner and Executive Vice President at K2 Enterprises
The Tax Cuts and Jobs Act will cause filing and calculation issues for software suppliers and practitioners alike, leading to one of the more difficult tax seasons in some time.
William ‘Murph’ Murphy | Sr. Editor at Insightful Accountant
I guess you are asking about ‘this tax season.’ While I think a lot more people may think that taxes will be a lot simpler, in reality they will likely find that they are more complicated than ever. Take for example business expense deductions, there is a lot more confusion over what is, when it is, when it isn’t and when it absolutely is not deductible than in the past. The real question will be just how ‘artificially intelligent’ some of the automated tax software will be this year… for example, will the tax software that relies on ‘Watson’ be any smarter this year, or will it still be responding… “ask Murph!”