march2021 - 21

FEATURE

Stay 3 Steps Ahead:

ACTIONABLE TIPS TO
HELP YOU PREPARE FOR A
TURBULENT TAX SEASON

By Jodi Chavez

LET'S FACE IT: No one expected 2020 to go the way that it did. And while
most businesses are certainly in better shape than they were this time last
year, it's unrealistic to think that low overall productivity during the first
half of 2021 isn't going to result in setbacks and challenges this tax season.
That's what we're in for, and forwardthinking tax professionals are putting in
the work ahead of time to be fully prepared.
Meanwhile, many business leaders and finance
leaders, on the other hand, are likely wondering what they can be doing in turn.
Fortunately, I've got some helpful tips to
share that should help you get there. There are
a lot of " watch-outs " to be aware of, red flags to
avoid as well as specific actions you can take
that will help your business gear up for what
promises to be a turbulent tax season. Here
are three that are top of mind.

LOSE SIGHT OF
1. DON'T
DEADLINES

While most of our schedules look a little bit
(ok, more than a little bit) different these days,
that isn't an excuse to take a lax approach
when it comes to deadlines and scheduling.
Whatever method works for you - Microsoft
Excel, Google Calendar, pen and paper - it's
imperative to keep track of timelines this tax
season. That's true for small businesses, and
even more so for corporations.
The IRS has issued an extension of the
April 15 filing deadline to May 17, 2021. There
may be additional changes. Companies can
still request extensions, of course, but those
can come with costly penalties. Unless you
manage the schedule perfectly, in fact, doing
so can put you on the hook for any number of
penalties, as well as the payments for interest.
Actionable next step: Brush up on the IRS
2021 tax schedule, and don't skip anything
that might apply to your organization. This is
required reading.

UNDERSTAND THE TAX
IMPLICATIONS OF PAYCHECK
2.
PROTECTION PROGRAM (PPP)
LOANS

The Paycheck Protection Program injected
some $659 billion of much-needed liquidity
into small businesses' bankrolls, shoring up
their payrolls and preventing the unemployment numbers from climbing beyond what
were, at that time, already sky-high figures.
In the heat of the moment and at the height of
the pandemic, end-of-fiscal-year tax implications may not have been the first thing that
recipients of these loans considered.
Well, now they have to, and it needs to
happen fast. The potential tax ramifications
are too complicated to break down or solve for
you in this short article, but I can point you to
the right resource.
Actionable next step: Head on over to the
Office of the Treasury's website to check out
the IRS's interim final rule on loan forgiveness
requirements for PPP.

I predict the demand for strong, experienced
finance leaders who can navigate the C-suite,
effectively build consensus and deliver on
strategy will be at all-time peak levels.

THROUGH THE ALLVIRTUAL LOGISTICS
3. THINK

Any seasoned finance leader will bring to the
table a wealth of experience working closely
alongside auditors, accountants, consultants
and others as tax day nears annually. But what
about virtually? Honestly, this isn't something
all that many can say they're truly, utterly and
completely prepared for.
But that shouldn't be a source of anxiety.

Just start preparing early, and establish the
right communication channels and cadence
for you, your team and any other stakeholders
involved in the tax planning, preparation and
filing processes. I think the biggest challenge,
unfortunately, will be for small business owners who are relatively green, and who may not
understand everything they need to provide.
It's a challenge that can get amplified when
everything is digital (and be sure to think about
potential cybersecurity vulnerabilities, too).
Actionable next step: Does that sound
like you? No worries - you've just got some
homework to do, and that starts with closely
reading and analyzing the IRS's Form 941 page
for small businesses.

LOOK AHEAD WITH GREATER
CONFIDENCE
Hopefully, the tips and actionable guidance
I've shared in this article have shed some
light on a complex subject, helped alleviate
your concerns and eased any feelings of
uncertainty - because, hey, we've all dealt
with way too much of that lately. As you gear
up for tax season, it's also a good idea to assess
your strengths and weaknesses organizationally. This year, perhaps to a greater degree
than ever, I predict the demand for strong,
experienced finance leaders who can navigate
the C-suite, effectively build consensus and
deliver on strategy will be at all-time peak
levels. And for finance-savvy software professionals, ditto. Yet given the all-virtual context,
how will companies in need right now actually
go about finding them?
I think I'll have to save that one for my
next article. ■
With more than 22 years' experience in
the staffing industry, Jodi oversees the
field organization and provides direction for Tatum. Jodi is responsible for
continuing to transform Tatum into a
data-driven organizational search and
consulting firm helping clients select the
key financial talent they need to execute their business
strategies.

MARCH 2021 ■

www.CPAPracticeAdvisor.com

http://www.CPAPracticeAdvisor.com

march2021

Table of Contents for the Digital Edition of march2021