The Tax Cuts and Jobs Act (TCJA) was signed into law on Dec. 22, 2017. It is broadly considered the largest piece of tax legislation in 30 years, and tax professionals are quickly trying to get up to speed on the legislation to understand the impact it will have on their individual and small business clients in tax year 2019. There are several benefits of cloud-based tax preparation software that could help you get a jump on the tax reform changes.
Cloud Software Updates Automatically
Since the law passed, the IRS has begun and will continue to issue guidance on how the tax community should apply the new law. As it becomes more clear how the law will impact your clients’ taxes, you can be confident that your Intuit® professional tax software is updated based on the latest guidance, since updates happen automatically in the cloud. There’s no need for you to install updates, meaning you have more time to get educated on the new tax law as well as educating and providing value to your clients.
The Tax Planner Takes to the Cloud
If you are an Intuit ProConnect™ Tax Online customer, there’s an additional benefit for you this year to being in the cloud. Your software now includes a Tax Planner that can help you and your individual clients understand what’s in store for tax year 2019 and future years around tax reform and other tax law changes. The tool helps you compare multiple scenarios using current and future state and federal tax rates and measures so you can help your clients get the best possible outcome next tax season. If you don’t yet provide tax planning services for your clients, the Tax Planner can help you do so, and show your value as a true consultant to them. Other invaluable features available in ProConnect Tax Online include:
- Tax year 2018 version: Includes the Tax Reform Impact Summary, which can help you project year-over-year differences for your individual and corporate clients, including a printable summary. This worksheet assumes the same tax situation as the prior year.
- Tax year 2019 version: Will incorporate IRS forms, worksheets and guidance.
Work From Anywhere on the Cloud
The TCJA is causing anxiety for many taxpayers. We’ve heard from our customers that your clients are already asking a lot of questions about tax reform, and the volume of questions is sure to increase as we approach and begin next tax season. Luckily, with cloud tax preparation software such as ProConnect Tax Online, you can address your clients’ questions from anywhere, on any device. You can review the Tax Reform Impact Summary and run new scenarios in the Tax Planner when your clients have questions, and the integrated Link client portal enables you to communicate and send documents back and forth with your clients. With the cloud, you can help set your clients at ease regarding tax reform, and still take a summer vacation!
Preparing for tax year 2019 and the impact of the TCJA won’t be a light lift, but we hope the cloud, including our ProConnect Tax Online software, can help you get a jump on the changes and have a successful 2019 tax season.
Editor’s note: This article was originally published Aug. 24, 2018, and updated on Nov. 7, 2019.