To ensure clients are aware of the latest tax regulations, it is crucial to keep them
informed of annual changes. This enables tax consultants to provide up-to-date tax
consultancy services would notify my customers by phone calls, emails, and add changes
on websites. I would also sit up different time for meetings so we can discuss everything
person. Sometimes people understand things better in person then over the phone
(Howard M. Goodman, C).
If any circumstances happen, then the following communication of need to be made if
changes in tax rules, any changes in their deductions, and any changes in their income
rate. An example of a tax change that occurred this year that I would not notify my
clients about is slight adjustment to the calculation of a fewer normally claimed tax
credit and standard deduction increased do that fact of inflation.
There are many ways to notify clients of changes to the tax code that may affect them.
Our firm uses many methods of communicating with clients, the most widely used are
emails, in person meetings, zoom meetings, phone calls and text messages, but we also
have a newsletter that goes out in paper form and electronically. We have an easy way
to send a mass email to certain client types. For example, when the requirements for the
Schedule K-2 and K-3 came out for partnerships and S Corporations we sent a mass
email with a memo to all clients that either had any type of partnership or S Corporation
that informed them of the new requirements and what would be needed if such forms
needed to be filed. b
Since I work for a small firm, we tend to be more involved with our clients. Clients I
work closely with have my cell phone number and will text or call me if needed. Usually,
these text messages are for quick questions but sometimes I send a quick message to
tell someone to read an email or that we need to schedule a meeting for a new law or
tax change that can affect them. For example, when the entity elective pass-through tax
payment (SALT Payment) came out our firm sent a memo, and I sent a text to my major
clients that I know would be interested in the deduction. A SALT payment is when an
entity elects to pay the state tax for the partners or shareholders on the entity level and
the individual gets a federal deduction on the face of the 1040. This was so great for
clients that got their state tax capped at $10,000 on the schedule A and had nowhere to
deduct their large state tax payments on their returns.
There are some tax changes that would warrant a memo and a phone call. For example,
when the reporting requirements came out for how leases are to be reported on
compiled financial statements, I thought of two clients that it would affect. I made sure
to call these clients that we issue quarterly financial statements for and make sure they
understood the changes and what it would entail to calculate and how it would change
the look of their financial statements.
A tax change that occurred this year that I did not notify clients about would be
something like the additional standard deduction for elderly and blind increased from
$1,700 in 2021 to $1,750 in 2022 to $1,850 in 2023. Small tax changes like this do not
have a huge impact on our client base, even though we have elderly and some blind
clients, it is just not important enough to send notifications to our clients.
References
Howard M. Goodman, C. (2018, November 20). How to easily educate your clients about
tax reform - tax pro center. Intuit. https://proconnect.intuit.com/taxprocenter/client-
relationships/how-to-easily-educate-your-clients-about-tax-reform/
Schwab.com. (n.d.). 2022 taxes: 8 things to know now. Schwab Brokerage.
https://www.schwab.com/learn/story/taxes-things-to-know-
now#:~:text=The%20standard%20deduction%20increased%20slightly,with%20one%20or
%20more%20dependents.
