Feeling stressed, tax pros?
I'm not surprised. Consider:
Get the picture? The IRS is turning the screws on taxpayers in an effort to increase compliance. That, of course, means more work for you.
In a eye-opening session at the AICPA's 2012 Tech+ Conference / Practitioners Symposium, New River Innovation co-founder Jim Buttonow said the volume of IRS notices jumped seven-fold from 2001 to 2009.
And it's not just a federal issue, Buttonow said. Given the revenue and budgetary challenges they face, state and local governments may wind up adopting tax compliance strategies that look terribly similar to the IRS's.
All of this has had a profound impact on CPA firms. Tax preparation volume hasn't increased much at typical firms, but Buttonow says post-filing compliance services have jumped by 75 percent. With all of that extra time spent on compliance issues, Buttonow says firms are less profitable and are finding it harder to retain clients.
This mess does present a few opportunties. New River Innovation Product Manager Brian Howell says forward-thinking firms are focusing on six best compliance practices:
The bottom line, say Buttonow and Howell? Turn the compliance challenge into an opportunity. Understand the effects that tax compliance issues are having on your practice and use them to become a best-in-practice firm.
What did Buttonw and Howell miss? How are you addressing tax compliance overload?