Consistent with our experience, we have received notification from other CPA firms as well as from the flow-through entities themselves, including some of the largest in the country (i.e. Boston Capital), that there is an increased likelihood that 2018 returns, both individual and businesses, will need to be extended for the current year. This is an industry-wide trend due to several factors.
- The numerous changes to the Code resulting from the Tax Cuts and Jobs Act of 2017. These changes in the Code meant that a number of IRS forms had to be updated.
- The 35-day federal government shutdown that began on December 22, 2018, delayed the IRS’ issuance of the necessary forms.
- Now that the forms have been released, tax software has to be updated by software vendors. This necessary software update has hampered many CPA’s ability to complete the 2018 tax returns for their clients. The CPA firms affected range from small firms to large firms. Several firms have still not completed the necessary updates to their systems.
Because of the changes to the Code and to the forms, much of the information we are receiving is subject to more scrutiny than in recent years. In many cases, we are finding that needed follow up conversations, edits, and corrections may be required which further slows down our process.