Building Blocks of Life & Career
As his final blog installment before starting his new position at NATP as the Director of Tax Content and Government Relations, Tom O’Saben wants to thank everyone for the opportunity…
May 23rd, 2022
I know it feels as though the 2021 tax filing season just ended (or hasn’t ended for many of you with extensions and nervous taxpayers inquiring about their delayed refunds). Fortunately, or unfortunately, it’s time to start planning for 2022 returns.
With this backdrop in place, remember that second quarter 2022 estimated tax payments are due on Wednesday June 15. You might need to also remind your pass-through entity (PTE) clients such as partnerships and subchapter-S corporations who are paying PTE tax on behalf of their partners or shareholders to get those payments in as well since this may the first year these entities may have been subject to estimated tax payment rules.
For those clients either disappointed with their 2021 results or wanting to ready themselves in advance of filing their 2022 returns, now is the time to have them send you their paystubs or income statements so you can begin to project their 2022 income and prepare them for how 2022 might be shaping up. Let’s get this done while there is sufficient time to make adjustments to avoid Spring 2023 surprises.
Most of our clients saw a dramatic increase in capital gain income during 2021. For 2022, it’s hard to predict the outcome given the recent market volatility so here’s a suggestion which I’ve been using. I’m averaging results for 2019 and 2021 to predict 2022 income. Why 2019? Because in my mind, that’s the last “normal” year we had pre-pandemic. There were more predictable capital gains during 2019 but if you want to error on the side of caution, use the 2021 capital gains in your 2022 projections.
My office brought on two new clients just this past week. Why? They said they could not get in touch with their previous tax pro. I understand you have a right to downtime just like anyone else, but communication is key. Use out-of-office auto replies which include your off-season office hours and manage the client’s expectations as to when you will get back to them. Even a quick email or text response letting them know that you are aware they are trying to contact you and when you might have time to get back to them will satisfy your client in the short run and keep them from leaving. You know it’s easier to satisfy current clients then to seek out new ones (except the Needy-Nellies)!
Disclaimer: The information referenced in Tax School’s blog is accurate at the date of publication. You may contact firstname.lastname@example.org if you have more up-to-date, supported information and we will create an addendum.
University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. This blog and the information contained herein does not constitute tax client advice.
Join 1,400 of your colleagues and get notified each time a new post is added.