december2021 - 6

Gearin
By Mike D'Avolio, CPA, JD
HOPEFULLY, TAX PROFESSIONALS won't have
to face the same challenges they have experienced
the last two tax seasons, such as
COVID-19 virus surges, extended tax seasons
and extra work (e.g. Paycheck Protection Plan
loans). However, we expect practitioners to be
quite busy given the number of tax changes.
The following article discusses some of the
issues and opportunities for accountants
heading into tax season.
TAX LAW CHANGES
The following is a list of some of the
higher impact tax law changes for tax
year 2021.
The third round of Economic
Impact Payments arrived last spring
and these payments will need to be
reconciled on the 2021 tax return
(similar to 2020).
The Child Tax Credit is more generous
than in the past.
* Children under 18 years old are covered
(instead of children under 17 years old).
* The credit is fully refundable (instead
of partially refundable).
* The credit amount is $3,000 and $3,600
for children under 6 years old (instead
of $2,000).
6 DECEMBER 2021 ■ www.CPAPracticeAdvisor.com
* Monthly advance payments have been
available between July 2021 - December
2021 and the advance payments are
reconciled on the 2021 tax return.
The Child and Dependent Care Credit
is more generous than in the past.
* The expense limit is $8,000 for one
child (instead of $3,000) and $16,000
for two children (instead of $6,000).
* The credit percentage is 50% (instead
of 35%).
* There are higher income phase-out
amounts.
* The credit is now refundable.
The rules for the Earned Income
Credit are more relaxed.
* The credit is more generous for taxpayers
without children.
* There is a look back provision where
you can use earned income from 2019
if it's more beneficial.
The Tuition and Fees Deduction for
college education has been repealed.
* However, you can still claim the
American opportunity credit and the
lifetime learning credit instead.
You can deduct 100% of Business
Meal Expenses (instead of 50%).
STAFFING CONCERNS
According to a survey, finding qualified
staff was the top issue for every firmsize
segment except sole practitioners,
and most expect staffing to continue
being a top issue in the next five years.
And why is that?
* Significant regulatory changes increase
the need for constant training.
* Historically, firms supplement staffing
with short-term seasonal hiring. But,
as technology becomes more crucial in
our workflow, onboarding and training
seasonal hires can be difficult.
* Not all clients embrace technology and
will submit their documentation in
different fashions (paper v. electronic),
and this creates complexity.
* Changing client needs alters the
demands and expectations firms have
for staff, requiring a delicate balance
between customer service, strategic,
and technology skills.

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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