Tax Season 2025: A Checklist For Accountants

Tax season starts in late January 2025. Get planning and tax filing tips, as the countdown begins.

The tax season countdown is on, so now is the time to start getting your firm prepared. In this ‘Tax Season 2025 Checklist’, you will learn more about the 9 things you can do to ready yourself for the tax season 2025 start date.

At a glance, the guide covers:

1. Taking a look back
2. Setting goals
3. Planning ahead
4. Updating software
5. Reviewing tax laws
6. Evaluating your pricing
7. Preparing your clients
8. Organizing your data
9. Automation

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Challenges faced by accounting firms during tax season

Before you start preparing for tax season, it’s important to understand the challenges you’re likely to face along the way. Here’s a closer look at some of the top challenges firms face during this high-pressure time:

Managing Heavy Workloads

Tax season brings a rush of tasks – tax filing, last-minute client requests, and navigating complex tax deadlines. For many firms, managing different U.S. federal taxes and unique tax filing requirements adds to the pressure. Seasonal staff can help but training them, while preparing for tax season deadlines, isn’t easy.

Keeping Up with Evolving Tax Laws

Practitioners must adapt to annual IRS updates and legislative changes. The looming expiration of provisions from the 2017 Tax Cuts and Jobs Act will affect tax season planning. Uncertainty around new legislation, such as the proposed Tax Relief for American Families and Workers Act, makes staying informed crucial for effective tax filing.

Client Communication Challenges

Late or incomplete documentation from clients can disrupt timelines, making it challenging to stay on track when getting ready for tax season. Accountants must also explain state-specific rules and deductions clearly to clients, ensuring smoother workflows.

IRS Communication Issues

Slow IRS response times and hotline transfer errors remain a pain point. Improvements for 2024 – like increased workforce and electronic tools – show promise, but challenges remain. The Internal Revenue Service has initiatives to simplify tax filing and promote the use of digital tools, aiming to make the process more accessible. Additionally, the IRS encourages taxpayers to use these digital tools for a more efficient filing process. Tax professionals need streamlined communication to avoid delays during tax season filing. Note: the IRS begins accepting returns from January 29th at the earliest.

Protecting Client Data

Cyber security threats peak during tax season. Accountants must adhere to regulations, ensure data encryption, and train employees regularly, especially when managing sensitive client information.

Remote Work Struggles

Hybrid setups make team coordination and secure access to client information more challenging. Firms need to invest time and resources to ensure smooth collaboration wherever employees are working.

Burnout Prevention

Heavy workloads and tight tax deadlines increase the risk of staff burnout. Firms that balance workloads and support their teams will be better prepared for tax season 2025.

Tax Season Organization with IRIS Document Management Software

IRIS’s Document Management software is a valuable solution as you prepare for this tax season. It organizes all your documents and finds the tax documents you need in seconds; creating a bespoke, secure database for your firm. Our document management solution is more than just a safe way to store files, it’s a way to streamline your firm, helping you optimize and automate key processes while eliminating duplicate files.