There are so many tax reporting deadlines and for the past two years, every time we came closer to the next deadline, there was some reason (beyond our control) for delays. Coming into this tax season, we were hopeful that things would be better.
With reasons beyond our control, we are expecting more delays. There has been significant reporting in the news about these issues, so hopefully, you were already aware of the difficulties that are affecting every firm in our industry.
Some of the complications that currently impact our service and may require a filing extension include:
- Delays in issuing guidance from the IRS and the California Franchise Tax Board on a wide range of issues from:
a. The implementation of the new state tax deduction workaround (AB150) for partnerships and S corporations
b. Foreign reporting requirements (K-2 & K-3)
c. Tax basis reporting on K-1s for partnerships and S Corporations
- Delays in tax software updates related to the many unanswered questions tax professionals have for the IRS and state taxing authorities related to pending guidance addressed in 1 above. Without answers, tax software providers around the country cannot update their programs, impacting the firm’s ability to finalize and send tax returns, which may require an extension.
- Delays in response from the IRS and state taxing authorities addressing unresolved issues (notices, refunds, amended returns, etc.). Some of you have been waiting more than a year for the IRS to correct or respond to a matter and we greatly appreciate your patience as we wait for the IRS and state taxing authorities to respond to our inquiries on your behalf.
We will continue to monitor these issues and keep you informed about the progress made. For our clients, thanks for understanding and your patience.
For any questions or concerns regarding the delays, please contact us directly.
About the Author
Lou Guerrero, CPA, MBT, Principal
Tax, Tax Specialty Services, Financial Services
Luis (Lou) A. Guerrero, CPA, MBT is Vice President of KROST CPAs and Consultants. As the Tax Practice department leader for KROST, Lou is responsible for the overall tax function of the firm and specializes in clients in the Financial Services sector (hedge funds, money managers, private equity), family office and high net worth individuals, Real Estate, Food Service (restaurants and related), Technology (including manufacturing and distribution) and professional service firms. » Full Bio