Record number reported for tax filing extensions
Widely regarded as the biggest overhaul of the tax code in decades, the Tax Cuts and Jobs Act reduced five of seven tax brackets when it was signed into law in December of 2017. It also doubled the child-tax credit and just about doubled the standard deduction. It also took away certain exemptions and capped the state and local tax deduction at $10,000. The Act also brought significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025.
It’s fair to say that some clients have more than often needed more time to file returns, but this year saw larger request for extensions than most. CBIZ reported 7 percent fewer returns filed as of April 15th this year versus the prior year – and 13 percent more extensions filed. The Tax Cuts and Jobs Act played a major role with its inception, with some of the more difficult returns taking a little longer.
The IRS expected to receive about 14.6 million extension requests from taxpayers, many of them in the final days of filing season, while they also warned that 50 million taxpayers had yet to file their returns at that time. And in an annual report released last month by the Taxpayer Advocate Service, there were 23.4 million returns with a balance due in the 2019 tax season — the first after President Donald Trump’s Tax Cuts and Jobs Act took effect — up 5.4% from the 22.2 million a year earlier.
With the tax law changes daunting for many, and added pressure for gathering documents and filing, one of the most effective ways you can keep in close contact with your clients is by sending push notifications via your own branded App. It allows you to maintain personal communications and inform, advise and support clients through a hectic period.
- Create client tax groups
- Send out immediate updates for tax law changes
- Support with deadlines and set up a meeting
- Advise individual, groups or all clients
- Link the notification to content you have produced on your website
Notifications are already used extensively in our personal lives but now they can be used to help communicate with clients and contacts quickly and easily. Delivery can be automated and almost immediately ‘pings’ onto the home screen of client’s mobile devices. This means for the CPA that the connection with clients is 24/7 and the accountant is accessible from Client’s pockets via their Smartphones and Tablets.
To find out more about how your own App can benefit your practice and help revolutionise your client communications and engagement, book a free demo today.