There are several different ways to make sure clients are kept informed about changes to
tax codes. One is by email. There are email programs available to businesses to help them
send periodic emails to clients. One such program is called Constant Contact. Constant
Contact allows you to send emails on a regular basis or when needed. You can email all
clients or set up clients in groups. For example, if there was a change in depreciation tax
laws then you would want to send the email to only business clients and not individual
clients. You may also want to follow up with a phone call to make sure the client saw
and understood the changes.
Another way to stay in touch and up to date with clients would be to schedule phone
calls to check in with clients. The frequency of the phone calls would depend on the
complexity of the client. Some clients may need to be called monthly, some clients should
be called on a quarterly basis and some you may only need to call every six months or so,
again it depends on the complexity of the client’s tax situation. During the phone
conversation there should be a standard set of questions you ask each time. For example,
for business clients you may want to call them at least every quarter and get updates on
how the business is doing, find out if they have made any changes to the business, and
have they added or laid off any employees.
There are many different tax changes for 2023 and not all clients will need to know
about each one. Changes to taxes affecting clients who do not have a business will not
need to know those changes. For example, an important change that business clients
need to be aware of for 2023 is the first-year bonus depreciation. In 2023, businesses
are no longer allowed to deduct the full cost of new or used qualifying business assets
with a life of 20 years or less is reduced from 100% to 80%.
As tax accountants, our commitment extends to meticulously staying updated on the
continuously shifting tax landscape. This dedication is rooted in our desire to empower
our clients with the necessary information to make astute financial choices. To
accomplish this, we not only arm ourselves with a diverse range of communication tools,
but we also recognize the intrinsic value this approach brings to our client relationships.
Beyond just providing updates, it facilitates a deeper understanding of their businesses
and enables us to offer pertinent and invaluable insights.
Options for Communicating Tax Updates:
• Personalized Emails: Personalized emails are an efficient way to notify clients of
pertinent tax changes tailored to their unique circumstances. For instance, if a tax
law alteration affects your investment strategy, I would promptly send an email
explaining the change and its potential impact.
• Social media posts: Posting periodic updates enables in-depth discussions about
complex tax updates. If a significant regulatory shift, such as modifications to
retirement account rules, occurs, I would post an informational update to explain
the changes and address any concerns.
• Client Portal Updates: Our firm offers a secure client portal where clients can
access personalized tax updates. For example, if there is an adjustment in
deductible business expenses, I would upload a document outlining the change
and implications for the client.
Circumstances and services which would prompt reaching clients are if there are updates
to international tax regulations, such as changes in reporting requirements for foreign
assets. Any alterations to healthcare-related tax provisions, such as changes to medical
expense deductions. a Significant overhaul in small business tax incentives, like revisions
to the Qualified Business Income deduction (QBI).
Tax Change Not Warranting Direct Client Notification:
This year, a change was made to the tax treatment of certain energy-efficient home
improvements. While noteworthy, the impact is based on per client basis, as not every
client can claim the energy-efficient credits. Therefore, this change might not warrant
detailed notification to all clients.
Lastly, we ensure clients remain well-informed and equipped to navigate the dynamic tax
environment. By employing a combination of personalized communication channels,
staying informed through credible sources, and leveraging specialized services.
References.
IRS releases energy efficient home improvements and residential clean energy property
credits. Internal Revenue Service. (n.d.). https://www.irs.gov/newsroom/irs-releases-
frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-
clean-energy-property-credits
