The document discusses considerations for accountants after tax season has ended. It notes that while filing deadlines have passed, busy season does not truly end. It encourages exploring how Wolters Kluwer can help accountants and taking advantage of limited-time pricing on their services. Some key statistics mentioned include the IRS doing more with fewer employees due to budget cuts, increasing wait times to reach the IRS on calls, and evolving rules and regulations challenging taxpayers.

1. POST TAX SEASON
by the numbers
Busy season may have passed, but there’s still much to consider.
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SOURCES:
The Washington Post, http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/14/the-irs-will-answer-less-than-half-your-calls-this-filing-season/
IRS, http://www.irs.gov/Tax-Professionals/Summary-of-Preparer-Penalties-under-Title-26
IRS, http://www.irs.gov/uac/Newsroom/National-Taxpayer-Advocate-Delivers-2012-Annual-Report-to-Congress
Forbes, http://www.forbes.com/sites/irswatch/2014/07/14/offer-in-compromises-made-easier/
Accounting Web, http://www.accountingweb.com/article/s-corporations-pay-highest-effective-tax-rates/222233
Forbes, http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail
Entrepreneur Magazine, http://www.entrepreneur.com/article/38822
2014 Wolters Kluwer — Accounting Firm Preparedness Survey, http://www.cchgroup.com/preparednesssurvey
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The IRS is doing more with less
due to budget constraints.
Stay up to date on hot topics
and get industry insights — plus,
don’t forget about those CPE credits.
Evolving rules and regulations make
it challenging for taxpayers to
manage their filings and understand
how to reply to the IRS.
Proactively bring to light areas for
improvement and ways to save.
The number of IRS employees
has been cut from 95,000
to fewer than 83,000 in
2014 — with a projection of
an additional 4,000 in 2015.
Average Hold Time for Calls
2004 — 2.5 minutes
2009 — 9 minutes
2014 — 20 minutes
2015 — 28 minutes
Percentage of Calls Answered
2004 — 87%
2009 — 70%
2014 — 64%
2015 — 43%
IRS Criminal Investigation
Cases in 2013
59.6% led to convictions
50.6% led to sentencing
40.5% led to incarceration
Penalties for Preparers
Failure to furnish copy to
taxpayer — $50
Failure to sign return — $50
Failure to be diligent in
determining eligibility for
earned income credit — $500
$400 Billion Gross Tax Gap
Rules and regulations continue
to change as the IRS increases
compliance activities.
Outstanding Collection Cases
5 million cases at the end of
April 2014.
28 states have a Dec. 31 CPE
deadline.
20% of the U.S. workforce
has entered or is nearing
retirement — taking years
of experience and knowledge
with them.
Solving Collection Issues
In 2013, only 42% of offers in
compromise were accepted by
the IRS.
Average Effective Tax Rates
Sole proprietorships — 13.3%
S corporations — 26.9%
80% of businesses fail within
the first 18 months.
Did you know? A company’s
business structure not only
impacts how much is owed in
taxes, but also the amount of
paperwork that is required, the
personal liability that is faced
and the company’s ability to
raise money.