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Tax Season Recap - Tax Reform & The Future of the Profession: What are the Pros Saying?

Tax Season Recap - Tax Reform & The Future of the Profession: What are the Pros Saying?

Tax season has come and gone. Today we're having our own tax season recap where we will be discussing tax reform and the future of the profession. In this month's #TaxBuzzChat, we're chatting with industry leaders, tax experts and small business owners to discuss tax reform and its effect on revenue, cybersecurity. AI, competition and cloud tools and the future of the tax and accounting profession. 

  • Do you project your revenue to be higher in 2018 and beyond because of tax reform?
  • Do you plan to take more continuing education in 2018 because of the tax reform changes? If so, what will be your focus?
  • What steps have you taken to protect you and your client's identity and private information?
  • Reports say that tax refund fraud is down. What is your experience based on your own client base?
  • Do you consider tax preparation a commodity? How do you communicate your value?
  • Are you using or plan on using online onboarding tools to collect and organize client data?
  • How important do you think your online reputation is for new referrals and online buyers choosing you?

These are just a few of the questions the pros discussed and debated in today's very active live Twitter chat session.

We know how busy everyone is, so thank you to everyone who took the time to participate! Be sure to check out the highlights of the chat below.

@TaxBuzzOnline will be hosting a #TaxBuzzChat on Twitter the first Wednesday of every month at 10am PT/1pm ET. Our next chat will be Wednesday, June 6th. Don't miss out on the next hot topic! Tweet us if there are topics that you'd like to chat about or have questions about.

Let's start with #taxreform and its effect on revenue. Q1. Do you project your revenue to be higher in 2018 and beyond because of tax reform? #taxbuzzchat pic.twitter.com/K7ZsZAehk0

A1: I expect to see an increase in 2018 revenues - NOT due to rate increases - but due to a HUGE increase in demand in particular for #SALT and #SalesTax consulting services. There are many/significant developments occurring in the #SALT arena that businesses are struggling with.

I'd caveat that slightly - there is more opportunity for consulting work. But many small firms don't all-knowing how to make it profitable work (vs answering a lot of Qs w/of billing for the time).

A1. Yes, #TaxReform will 1) cause return preparers to retire from practice and create a market for those choosing to continue and 2) cause further complexity in the tax law for taxpayers. #taxbuzzchat

A1. Yes, the differences between Federal and state #taxation, the new business changes and dealing with the other #TaxReform changes provide opportunities for midyear planning and more tax appointments next year. #TaxBuzzChat

A1. I think my firm may lose some of the more basic wage earner clients with no investment/business components of their file. However, I think business owners and investors will increase my revenue with not only tax preparation but with tax planning as well. #TaxBuzzChat https://t.co/VHgi42M1Ub

A1. Should be about the same or higher since my business is teaching, actually.

A1. Yes, I expect 2018 revenue to be higher this year because the "playing field" is brand new and many need/want to know the new rules.  This is particularly true for all business entities and for some state specific individuals. #TaxBuzzChat

A1. Expect lots of business planning services to happen #taxreform so do project higher revenue. This will be offset in part by lots of professional development as we work to master the many new laws and how it will affect our clients.  #TaxBuzzChat

You are ahead of curve identifying the need for extra CE this year. And new details keep coming. So will be year round task. But think of all the time you will save during interviews.

Q3. Do you plan to take more continuing education in 2018 because of the #TaxReform changes? If so, what will be your focus? #taxbuzzchat pic.twitter.com/mVHMRvEF03

A3. The new #TaxReform and especially dealing with the new business provisions demand extensive education this year.#TaxBuzzChat

Q3, Heck yeah!  And plan to be offering more courses, since they are critical. #taxbuzzchat

A3. I will take and give more continuing education in 2018 - practitioners should build on knowledge they acquire through courses in order to be ready for 2018 returns.  I will focus on all areas as all #Taxpayers are affected #taxbuzzchat

A3: I've always stressed continuous improvement & learning for me and my staff so probably not more in terms of quantity. However, more of our CPE will focus on #taxreform changes than normal years.#TaxBuzzChat

Q#:  Continuing education is a must, because this stuff is so complicated.  Hopefully the guidance will be coming soon and be clear, well as clear as it can be. #taxbuzzchat

A3. I have already begun taking C.E. classes and plan on taking many more than required before the end of the year. Most dealing with #taxresolution and #taxreform with an emphasis on #business and rental #taxpayers.#TaxBuzzChat https://t.co/mPzhZBg4Z1

#TaxBuzzChat The pros that really master this will save time during tax season and serve their clients better. Clients are aware of the changes, and trust their tax pro will be prepared.

A3. Definitely! I'm very interested in learning more about the international aspect of #taxreform; my company should also be providing different webinars throughout the year too. #taxbuzzchat

Ok, lets shift to #CyberSecurity >> Q4. What steps have you taken to protect you and your client's identity and private information? #taxbuzzchat pic.twitter.com/eG2xDWqlR7

Q4. I am always recommending Drake's SecureFilePro and ClientWhys and the students' own tax software's systems.  #taxbuzzchat

A4. The step I have taken to protect my identity is to protest with the IRS the availability of my #PTIN information in the #IRS Reading Room #taxbuzzchat

A4: We've implemented CCH Portal, SafeSendReturns for return delivery and e-signatures, as well as Microsoft 365 Secure Email Encryption for other file transfer needs. #TaxBuzzChat

A4. I have two computers, one for everyday use and one for #taxpreparation. Client data is only present on the tax prep computer.  The tax prep computer is only connected to the Internet for the short periods it takes to transmit e-files.  #TaxBuzzChat #taxtips

Q4: Staff/employee/client education is so important on this topic.  You can never remind folks enough to not open a strange attachment to an email, leave confidential info out for viewing #taxbuzzchat https://t.co/3LNwmZs0Kv

Q4. We did increase our insurance on cyber coverage. We won't open any attachments that we don't expect.  #taxbuzzchat

Q4: Always update software. Still use the shredder.  Update passwords often.  #TaxBuzzChat

It's the unique passwords that makes it a challenge.  Good point.

Try @LastPass, @dashlane (what I use) or a similar service to ensure and manage complex passwords!! Not sure why anyone still tries to do this my memory or worse, excel!

A4. Better awareness of what #phishing emails looks like. They are coming daily now and targeting tax pros. #TaxBuzzChat

good idea @LeereamsSr. I am a huge fan of redundancy! When it comes to #taxes, all backup procedures are welcome. #taxbuzzchat https://t.co/aK4nyFryGE

A4. We provide a Cloud system, and offer a secure ShareFile system for uploading documents rather than emailing as attachments. #TaxBuzzChat #Cloud #CyberSecurity

Q4: being a sole proprietor, I have encrypted all networks and both hard drives and flash drives, use my sharefile portal for all client info and tax docs - since I use Lacerte I have to change all passwords to the softwear every 30 days as well.  #TaxBuzzChat

Q5. Reports say that tax refund fraud is down. What is your experience based on your own client base? #taxbuzzchat #taxfraud #taxrefund pic.twitter.com/S5B6E3t91E

A5: We've never had many clients who experienced tax fraud, but we continue to stress caution when sharing ANY personal information, even if it's not specifically tax related.#TaxBuzzChat

A5. I have only two clients that use IRS PIN numbers due to identity theft. I do clients who have ex-spouses and do not pay required child support many times claim the children when they are not entitled to. #taxbuzzchat

A5 (cont) Recently I had a client give me his records for a business return. Then in my office told me to add revenue, then delete some of the revenue to arrive at what he wanted his tax return to look like... #taxbuzzchat

A5 .... (cont) I promptly advised my attorney and the firm is sending my client a letter severing the relationship with my company #taxbuzzchat

Q5:  Seems a lot of the #IRS procedures are working for tax return fraud.  But #identitythieves are still out there and are constantly changing their tactics.    #taxbuzzchat

Q5 - this is still such a huge problem. The IRS is sending out critical warnings each week. Yet Congress cut casualty losseS?? #taxbuzzchat

A5. I'm a tax law editor at @BloombergTax & don't have clients in the same sense as practitioners (our customers buy data products, tools, and news services), but as I did give a CLE talk last fall about tax refund fraud, I hope my audience didn't have any problems #taxbuzzchat

Q9. Do you consider #tax preparation a commodity? How do you communicate your value? #TaxBuzzChat #taxprepartion #TaxPros pic.twitter.com/Qez9PLk1wH

A9. I point out that I am available year-round to answer any questions and I constantly attend educational seminars improving my knowledge of tax law as it changes. #taxbuzzchat #TaxPros

A9. Tax preparation and planning go hand and hand - preparing your return is the one thing the government asks of you and failing to plan is indeed planning to fail #TaxBuzzChat

A9 (cont) When a client leaves preparing their own return, I remind them, if you want to come back, you start at the bottom of the list for people who want to be my clients and the list doesn't move very fast #TaxBuzzChat

A9. (cont) I also remind clients that I can represent them in any tax matter before the IRS and only an Enrolled Agent can do that other than the taxpayer themselves... #taxbuzzchat

A9: I used to think a tax return was a commodity, but the tax law and #taxreform have made each return unique to the individual or business. They all require personalized attention. #TaxBuzzChat

A9 I absolutely consider tax prep a commodity... you can't enter the number any different than another person can.  It is how you convey the message, communicate with your customers, and follow up on their needs.  #TaxBuzzChat

A9 (cont) ... I ask clients for online reviews and am told time and time again by new clients it's the reviews that convinced me #taxbuzzchat #onlinereviews #reviews

A9. As @beanna_whitlock says. To me prep and planning go together. All client appts include both. Always has.  #taxbuzzchat

Q9:  Quality client service and offering more than just a #tax return are the ways to distinguish your value.  Yes, a #tax return can be a commodity, but being a trusted adviser to your clients is where its at. #taxbuzzchat

Q9. However, we have always charged based on client cooperation. Clients who need chasing pay more - or are fired #taxbuzzchat

A9. There are 150 million (give or take) individual US taxpayers, each with a different set of facts. #Tax prep isn't just about delivering docs; it's about evaluating data & making recommendations. With a good tax pro, you pay for advice and experience, not a form.#TaxBuzzChat

Yes. Yes. Yes! That's a great explanation of the value that a #TaxPro brings to the table.#TaxBuzzChat

Amen! —- anyone can put the numbers in the form —a pro analyzes the data and asks questions, to assist  the tax payer!

Q9:  Tax preparation has always been an art, at least the way I like to practice it.  I am constantly communicating to clients with brief explanations for things to think about when they come to get returns done.  Combining business and personal can save money.  #TaxBuzzChat

Q11. Are you using or plan on using online onboarding tools to collect and organize client data? #TaxBuzzChat #taxtalk #taxchat pic.twitter.com/tlbsl44svR

A11. I analyze data on clients, age, demographics and criteria in order to continually value my practice and offer new services based on client need #TaxBuzzChat

A11: We've tried a few online tools, but most clients got frustrated or entered info in the incorrect place. Both problems resulted in more work for our staff tax preparer. #TaxBuzzChat

A11. Tools like @GruntWorx to save some time. #TaxBuzzChat

A11. OTH, having taken the Tax Coach training @CertTaxCoach, I did just add a new consulting option on https://t.co/O9g4UKjwhF #taxbuzzchat

A11. More clients are interested in electronic organizers each year. Some do a good job completing it, others not so much.  Scanning software gets better each year reading tax documents. #TaxBuzzChat

A11. We have mostly focused on #marketing automation. But we do have some tools rolling out over this year that are more customer facing (CRM) versus practice management. So yes we are excited for the future. #taxbuzzchat

Q11 I have used digital tools to receive almost 100% of client data for the past 3 years. For some it is a learning curve, but all have enjoyed the convenience and efficiency. My eldest client is 78 and gets help with scanning/uploading docs-otherwise fine. #TaxBuzzChat

Q12. How important do you think your #onlinereputation is for new referrals and online buyers choosing you? #TaxBuzzChat pic.twitter.com/pu8yRXbt60

A12:  A #tax pros online reputation is very important - and is demonstrated by more than just online reviews. It's also how you conduct yourself online (such as through your interactions on LinkedIn and twitter), whether you're sharing relevant and timely information. 1/2

A12: And if you're a blogger or writer (like yours truly), the quality of content you're producing - does it demonstrate your knowledge & expertise or is it just a "marketing plug." The VAST majority of my referrals are a direct result of my blog articles at @SalesTaxSupport 2/2

Q12. Critical. Do you need to be using tools like Yelp, etc to get public reviews? Or are testimonials on your site enough? #taxbuzzchat

A12. The #reviews need to be credible. So third-party marketplaces add a level of trust that someone is not gaming the system. That is why we verify reviews and do background checks for select pros on https://t.co/HLOAuau3wZ #taxbuzzchat

Yes agree. Though 99% of the referrals will now Google your name. You have a much stronger brand than most tax pros. Our data shows pros with reviews get much more traffic than others. #taxbuzzchat

A12: All of us here probably already are aware of the importance of the online reputation. Going forward, online reputation and contributions to the industry will be more important as a differentiator between service providers.#TaxBuzzChat

A12. An absolute must. The younger generations will automatically go online and check your reviews first even if recommended by one of your existing clients. #taxbuzzchat #onlinereviews https://t.co/7nep0q5MFw

A12. I think #onlinereputation is important - esp now that so many tax pros are going virtual. If you can't meet someone, you still need to do your homework. Research. Read reviews. (1/2)#TaxBuzzChat

A12. #OnlineReputation is very important towards new clients and client referrals. #TaxBuzzChat

A12. The #reviews need to be credible. So third-party marketplaces add a level of trust that someone is not gaming the system. That is why we verify reviews and do background checks for select pros on https://t.co/HLOAuau3wZ #taxbuzzchat

A12: All of us here probably already are aware of the importance of the online reputation. Going forward, online reputation and contributions to the industry will be more important as a differentiator between service providers.#TaxBuzzChat https://t.co/Q2BFInJVjc

A12.  Use caution w/ folks who constantly reinvent themselves or their biz online (or IRL) by opening/closing at random or frequently changing names.https://t.co/gJyvMtNGtM #TaxBuzzChat (2/2)

Happy clients love to share their experiences. Better be proactive versus waiting for that one bad experience and a one star review that shows on top of the search results. Go for it. #taxbuzzchat

Online Reputation is extremely important.  I get 60% of new clients using Search Engine Optimiztion for my site & reviews from google and yelp to show my expertise & how my clients like my service.  Best way to get new work, even better than client and pro referral #TaxBuzzChat

Thanks Kelly - Big Red flag. Another reason to Google the tax pros name and read over reviews and check out their website. Paints a nice picture of what you should expect from your pro.  #taxbuzzchat https://t.co/4uIDR4jCDt

— Lee Reams II (@leereams2) May 2, 2018

We're glad everyone enjoys our #TaxBuzzChat!

Great chatting with everyone. Let me know when the recap is up @taxbuzzonline. Thanks! #taxbuzzchat

Thanks Joan, Lee, Lee and all - looking forward to seeing the summary #taxbuzzchat

Wow, that hour went by fast! Thanks for hosting this and I look forward to next month!#TaxBuzzChat

Thank you so much for hosting!

This was great.#TaxBuzzChat

Thankyou for an informative hour - it did go quickly!  #taxbuzzchat

— Patricia McMillan (@PatMcMillan) May 2, 2018

To see the full chat session, click here.

We had a great time chatting with our participants on such a hot topic. Feel free to use our #TaxBuzzChat hashtag or tweet us at @taxbuzzonline if you have any additional questions you'd like answered.

We'll be hosting #TaxBuzzChat the first Wednesday of every month at 10am PT/1pm ET for our monthly discussion on all things tax and accounting. Hope you can join us in June!

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TaxBuzz Staff

TaxBuzz Staff

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