december2021 - 10
FEATURE
By Ernie Villany, CPA
WE'RE ALL FAMILIAR with the old " death and taxes " saying.
It's true that both are an inevitable part of life, and both are
dreaded by most. Clients have a tendency to get anxious
about filing their taxes, despite knowing tax season comes
at the same time year after year.
For many clients, there's a sense
Read on to hear about some
of impending doom and an irrational
fear to avoid the IRS' prying eyes. Yet
for something so routine, taxes seem
to have a way of throwing off even
the most resolute among us. As a
professional working in the field of
accounting for more than 30 years,
I've learned a thing or two about
taxes and the all-encompassing
fear that surrounds them. I've spent
years acting as both a CPA and an
unlicensed therapist for my clients.
Thankfully, I've picked up some
helpful advice and tips designed to
reduce the level of anxiety associated
with tax return filing. I like to start
with a little secret I share with all
of my clients. It sounds like a simple
solution because it is: Calm down - it's
only taxes.
of the most common fears our
clients have, along with some coping
strategies from an unlicensed
therapist that help guide them to
the other side of the filing deadlines
completely unscathed. A little bit of
humor is always welcome. My own
approach with clients reminds me
of an unforgettable line I once heard
an experienced cable car conductor
give a female passenger as we were
headed down Hyde Street Hill in San
Francisco: " Lady, just relax. And don't
jump unless you see me jump first. "
FOROSOPHOBIA: FEAR OF
TAXES AND THE IRS
If you weren't already aware, the fear
of tax season for some is very
real, earning recognition as an
official phobia, forosophobia-otherwise
known as the fear of taxes and
the IRS. This phobia has common side
effects that plague our clients every
year, including procrastination and
avoidant behaviors, extreme anxiety,
and even feelings of helplessness.
But like most other phobias, the fear
of taxes and the IRS is born from an
irrational place and can be confronted
and overcome with the right mindset
and tools.
AUDITS!
First and foremost, make sure your
clients understand that audits and
other tax-related government correspondence
are rare events, as fewer
than 2% of individual returns are
audited. Of course, receiving a notice
that you're being audited can be cause
for concern, but only if you've committed
willful violations of the tax
code in an effort to conceal, deceive,
or defraud the IRS. Communicate to
your clients that over three quarters
of all tax examinations (audits) are
typically cleared up with a routine
exchange of letters.
WHAT IF I CAN'T
PAY ON TIME?
If your clients aren't aware, let
them know that 80% or more of
recent filers were either due a
refund or didn't owe taxes. And
that the inability to pay what they
owe or on time is a low probability
event. You can reassure them that,
despite the unearned reputation,
the IRS doesn't operate like a bookie
backed by an organized crime outfit.
On the rare occasions where accounts
can't be settled by the due date, share
their options in requesting extensions,
offers in compromise, and even pay10
DECEMBER 2021 ■ www.CPAPracticeAdvisor.com
ment plans (with interest, of course).
MISTAKES & ASSOCIATED
PENALTIES
Unless they've previously won a Fields
Medal (for mathematics), tell your
clients that they can be excused for
making a mathematical error on their
taxes. Be up front and honest with
them about any associated penalties
but do your best to request a waiver
if the situation warrants it.
HOW TO DEAL
The clients we work with have a lot on
their minds. We all do. But providing
them with reassuring advice that
builds a lasting trust is one of my
favorite aspects of the job. Dealing
with anxious clients is among the
most professional of problems to
have. So, act like it. Hold face-to-face
sessions, as you're able-even over
Zoom. Live up to the level of personable
service you promised to win their
business. Listen more than you speak
and, when you do, provide them with
professional advice that further establishes
your bond of trust. Always use
your emotional intelligence to provide
an empathetic viewpoint.
Taxes are hard. That's why most clients
leave it to the professionals. Let's
all do our part to live up to the label. ■
Ernie Villany, CPA is the founder and
president of Boulder Valley CPAs
(BVCPAs), a Colorado-based
CPA/advisory firm representing
clientele in 30 states. Villany
has over 30 years of experience
in public accounting, helping
small to medium-size businesses
around the world plan and manage their
financial growth, while mitigating tax
liabilities.
http://www.CPAPracticeAdvisor.com
december2021
Table of Contents for the Digital Edition of december2021
From the Editor: Your Personal Enrichment Schedule for 2022
Evaluating the "New" Tax Season Normal for Tax Advisors
Gearing Up for Tax Season
Checklist for End-of-Year Activites with Clients
Calm Down - It's Only Taxes
How to be Proactive vs. Reactionary as a Tax Pro
From the Trenches: Client Experience for Today and Tomorrow – Ten Ideas for Your Playbook
Let's Build a 2022 Q1 Marketing Plan for Your Firm
Commemorating 100 Years of Black CPAs and Looking Forward
Why Your Firm Needs Gated Content
Dancing in the Dark: 2022 Will See Shifting Tax Regulations in the U.S. and Abroad
The Labor Law Advisor: Preparing for an OSHA Inspection
The Millennial Advisor: Avoiding the Inevitable
Accounting Meta Influencers Discuss Trends, Provide Actionable Insights
The Leadership Advisor: COVID-19 Taught Us the Importance of Slowing Down
Apps We Love: Apps for Charitable Giving
The ProAdvisor Spotlight: Integration of QuickBooks Online and Mailchimp Create Personalized Marketing Campaigns
The Staffing & HR Advisor: How a Learning Culture Can Transform Your Practice
Getting Paid by Venmo or PayPal? The IRS Will Know
AICPA News: A round up of recent association news and events
Bridging the Gap: 6 Tips for Managing Technostress
december2021 - 1
december2021 - 2
december2021 - 3
december2021 - From the Editor: Your Personal Enrichment Schedule for 2022
december2021 - Evaluating the "New" Tax Season Normal for Tax Advisors
december2021 - Gearing Up for Tax Season
december2021 - 7
december2021 - Checklist for End-of-Year Activites with Clients
december2021 - 9
december2021 - Calm Down - It's Only Taxes
december2021 - How to be Proactive vs. Reactionary as a Tax Pro
december2021 - 12
december2021 - 13
december2021 - From the Trenches: Client Experience for Today and Tomorrow – Ten Ideas for Your Playbook
december2021 - 15
december2021 - 16
december2021 - Let's Build a 2022 Q1 Marketing Plan for Your Firm
december2021 - Commemorating 100 Years of Black CPAs and Looking Forward
december2021 - 19
december2021 - Why Your Firm Needs Gated Content
december2021 - Dancing in the Dark: 2022 Will See Shifting Tax Regulations in the U.S. and Abroad
december2021 - The Labor Law Advisor: Preparing for an OSHA Inspection
december2021 - The Millennial Advisor: Avoiding the Inevitable
december2021 - Accounting Meta Influencers Discuss Trends, Provide Actionable Insights
december2021 - 25
december2021 - 26
december2021 - 27
december2021 - The Leadership Advisor: COVID-19 Taught Us the Importance of Slowing Down
december2021 - Apps We Love: Apps for Charitable Giving
december2021 - The ProAdvisor Spotlight: Integration of QuickBooks Online and Mailchimp Create Personalized Marketing Campaigns
december2021 - The Staffing & HR Advisor: How a Learning Culture Can Transform Your Practice
december2021 - Getting Paid by Venmo or PayPal? The IRS Will Know
december2021 - AICPA News: A round up of recent association news and events
december2021 - Bridging the Gap: 6 Tips for Managing Technostress
december2021 - 35
december2021 - 36
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