It’s 11:00 PM on January 28th, and you’re emailing a graphic designer from eight months ago to ask for their W-9. The designer probably won’t respond tonight. The deadline is in three days.

January is a self-inflicted wound. And the honest question is - why do we keep doing it to ourselves?

If this has just been your experience, there’s no need to twist the knife by over-explaining or over-exploring why it happened. You’re probably acutely aware of the cracks in the cycle:

• You pay contractors throughout the year. If you didn’t collect W-9s at the point of first payment, you were chasing it in January.

• If you don’t track payments centrally, you were reconciling across multiple platforms in January.

• If you haven’t built a recurring payment workflow, you were processing all year manually and had a mess to sort out in January.

And it’s only going to get more complicated. As businesses take on more contractors across borders, international payments enter the mix too.

You wouldn’t let a client run their books this way. You’d build them a process. So why are contractor payments still being run on good intentions and email chains?

Fix the workflow, fix January.

For many firms, the reason it stays unfixed isn’t simple inertia. There’s also tool fatigue.

Many firms have already tried to fix this once or twice, implementing a tool that solved one piece of the problem while leaving the rest untouched. W-9 collection improves, but payments stay scattered. Payments are centralized, but 1099 filing remains manual.

After investing time in partial fixes without solving the whole picture, the appetite to try again is understandably low.

But the reason those earlier fixes didn’t hold is because they weren’t really fixes at all. They were band aids on symptoms rather than a cure for the whole workflow.

The solution is to consolidate contractor management into the same platform where payments already run. When that’s in place:

• W-9 collection is triggered automatically at the point of first payment. The request goes out, reminders follow if a form isn’t returned, and it’s done without anyone having to remember to chase it.

• Every payment is tracked in the same place so contractor spend, payment history and 1099 eligibility are visible throughout the year without reconciling across platforms in January.

• By the time filing comes around, the work is already done. Because everything was captured as it happened, there’s nothing to pull together at the deadline. It was never scattered in the first place.

That’s it. Start the relationship right, keep everything in one place, and January stops being a crisis.

Once the headache is gone, the advisory opportunity opens up.

If you’re managing contractor payments for clients in a fragmented way, you’re doing all the work without any of the data benefits. And for many firms, you’re also not making a margin on it.

When the entire contractor workflow runs through one connected system, that changes. You know which clients are approaching 1099 thresholds before they get there. You can see when contractor spend is creeping up in ways that will affect cash flow, and you can spot compliance exposure before it becomes a problem. These aren’t things clients are tracking themselves, and they’re exactly the kind of insights that shift the conversation from “can you file our 1099s“ to “what else should we be thinking about.“

And even if you’re already doing advisory work, contractor payments can still be a messy, manual headache. The data benefits are just a bonus on top of fixing something that’s been annoying you for years.

This is where the pricing conversation changes too. Contractor management and 1099 compliance, packaged as a defined service with its own fee, is a straightforward conversation with clients who already feel the pain. The outcome is clear, and you’re not trying to convince anyone there’s a problem. Price it separately. Don’t let it get buried inside a bookkeeping retainer where the value disappears.

For firms not yet in this space, contractor management is one of the cleaner entry points into CAS. Defined scope, a problem clients feel acutely, and a natural path toward broader work once the foundation is in place.

The time is now.

The January pain fades fast, and that’s exactly how firms end up back in the same position next year.

Don’t wait. The obvious place to start is with clients already paying contractors regularly. The problem already exists, the value is immediate, and the setup is straightforward.

If you want to see how this workflow comes together in practice, check out how Melio handles contractor payments.

That way, you could be starting 2027 free from the cycle of chasing, with a January that runs itself and a CAS service line that didn’t exist this time last year. Wouldn’t that be something?

If you’re in tax, you don’t need me to tell you what the first two weeks of March feel like.

You’re triaging emails before 7 a.m. You’re answering client questions that start with, “Quick question…” (they are never quick). You’re fielding edge cases, gray areas and “my friend told me” tax positions. And you’re doing it while deadlines stack up.

This is the part of busy season where even the best tax pros feel the squeeze.

So I want to share something interesting from my friends at Blue J, because the timing couldn’t be more perfect.

Something Changed at Blue J

For the first time in over 10 years, Blue J opened a free 7-day trial. No credit card needed for full access!

When they launched this free trial, they initially expected a big Day 1 spike from their existing audience and then a drop off. But that’s not what happened. Day 2 was bigger than Day 1.

That means professionals tried it… got value fast… and told other professionals. When the downside to trying something is zero — and it actually works — sharing becomes the default.

One Million Answers. In One Month.

Wow, people are really using it, too. Ben recently shared that they had one million tax research answers delivered in March alone.

To put that in perspective:

• It took 619 days to reach their first million answers.

• The last million took 30 days.

• They’ve now passed 6,000,000 total answers delivered.

Those are real, messy, time-sensitive tax questions from professionals who need defensible answers fast. And they are moving from “trying AI” to “relying on it.”

AI does not replace professional judgment, but it can absolutely sharpen it.

Every one of those million answers represents a faster path to the right authority. And no more late-night second guessing. And anything that compresses research cycle time without compromising quality is worth testing during the hardest stretch of the year.

Busy Season Is the Real Test

The next two weeks is not the time to experiment with fluff, but it’s a great time to test what actually holds up under pressure.

So here’s my radical take: Try it when you’re slammed. Try it on the weird partnership allocation question. Try it on the state conformity mess. Try it on the “my client moved three times and owns crypto” situation. If it saves you time when everything is on fire? That’s the proof.

March is always intense. But the tools are getting better. Adoption is accelerating. And the firms that lean in during the hard moments come out stronger.

For those of you in the trenches these next two weeks, I see you. And if there’s a way to get sharper, faster and more confident under pressure? That’s worth a look.

👉 https://www.bluej.com/free-trial

Why does this matter? Because firms that move fast can turn a technical change into a repeatable, high‑margin service line over yet another compliance fire drill.​​

Why Tips Suddenly Matter More

Under the proposed regulations, qualified tips must be paid voluntarily, not negotiated or required. Customers only determine tip amounts, meaning automatic gratuities and service charges are out.​​

The IRS has also released a detailed tipped‑occupation framework that covers core industries like restaurants, hospitality, salons, gaming, delivery and more, laying out nearly 70 roles grouped into eight categories.

Starting in 2026, W‑2s will carry new occupation codes and separate reporting for qualified tips, giving the IRS a clearer view of who is earning what.​​ Now you see why it matters more.

The Perfect Advisory Storm

This shift equates to more visibility, more dollars on the table and more client confusion. The storm doesn’t get more “perfect” than that.

For employees in qualifying occupations, they can exclude up to $25,000 of qualified tips from federal income tax still subject to FICA and possible state income tax. Employers, on the other hand, will continue to owe FICA but can leverage or expand the longstanding FICA tip credit on properly reported tips.​​

For clients, the risks are ample. POS and payroll systems often don’t cleanly reconcile. Service charges get commingled with tips, and cash tips historically go underreported. If you don’t help clients reset their processes now, someone else will, like a general business consultant who charges more than you. That leaves you coming in after the fact to explain why they heard about the opportunity from another advisor first.​​

Turning New Rules into Revenue

The firms that win won’t just know the rules, they’ll package them. A Tip Credit in a Box option enables firms to deliver consistent value across dozens of service‑industry clients without reinventing the wheel each time.​ Think of it as an off-the-shelf offering. No muss, no time-draining fuss.

Now imagine what this package would look like:

• A rapid opportunity assessment: Quick questions on industry, number of tipped staff, average tips, POS usage and sales to prioritize high‑value cases. Consider a likely example where a single restaurant with 10 tipped employees and $6,000 in average tips per worker can easily generate a five‑figure annual credit.​​

• A clear data checklist: POS tip reports, payroll summaries, service‑charge breakdowns, employee roles and tip‑pooling documentation so staff know exactly what to request and why.​

• A repeatable workflow: Intake → POS vs. payroll reconciliation → occupation and qualified tip verification → quarterly monitoring → final FICA tip credit calculation and implementation plan.

When you can show a client, for example, $11,000 in new credits in exchange for a $4,000 fixed advisory fee, the conversation shifts from “Why is this so expensive?” to “Why didn’t we do this sooner?”​​​

Scaling Advisory with Navi and TipCalc

Where most firms get stuck is not in a lack of understanding the law, but in consistently conducting confident, value‑driven conversations at scale. That’s where Navi and TipCalc come in to help — big time.​

Navi acts as an AI advisory copilot, helping you rehearse FICA tip credit discussions, build agendas, handle objections like “Don’t you already do this on my tax return?” and fine-tune your language before you ever talk to a client.

After client calls, uploading meeting transcripts allows Navi to score your performance on areas like tone, empathy and strategic insight so advisory becomes a coachable skill across the whole team, and not just something locked in a partner’s head.​

TipCalc handles the heavy lifting on the technical side. You or your staff upload POS and payroll data (or connect integrations), and the engine calculates the FICA tip credit, flags suspicious under‑reporting and produces exportable results for your tax software and workpapers. The compliance calculation is priced separately, while your real margin sits in the advisory layer you design around it.​​

Don’t Let Someone Else Own the Conversation

Right now, clients are hearing “no tax on tips” from the media and social feeds long before they hear it from their accountant. This gap is either a threat or an invitation. Cash in on the invitation!

If you start with a clean narrative, a productized Tip Credit in a Box and Accounting Advisory Tech like Navi and TipCalc, you not only protect your compliance work, but you also reposition your firm as the year‑round, insight‑driven go-to source of truth your service‑industry clients need.

…There are AI tools that scan documents, answer questions plainly and walk them through returns at 11 p.m. in pajamas, no accountant in sight.

… Tax preparation tools don’t send clients a $200 bill for a 20-minute phone call they didn’t understand anyway.

…People open an app, scan a W-2 and get a refund estimate before they’ve even returned their email. Some don’t even think to call. Why would they?

Their AI best friend can give them an answer in two seconds! And it doesn’t make them feel stupid. That’s more than we can say for the CPA that’s been in their family for generations, charging premium rates for word vomit.

Accountants are in the Relationship Business

These days, your success relies on learning how NOT to freak normal people out.

You’re not just a number-cruncher anymore! You’re a translator, a strategist a financial first responder. You make things make sense. You remind people to breathe when money stuff starts stressing them out.

Money is always going to feel overwhelming, no matter how advanced the tech gets. (Lucky us!)

And AI is never going to know the full story.

It doesn’t know your client’s kid has a disability or that they qualify for tax credits they’ve never heard of. It doesn’t know that the client lost their job, started freelancing and are terrified of owing money they don’t have. It doesn’t know they inherited property from their grandmother or understand the emotions and tax implications connected to selling it.

AI doesn’t know how to gently walk your clients through a rough year with empathy and clarity. It doesn’t connect dots. It doesn’t read the room. It doesn’t call after hours because something doesn’t “feel right.”

You do! And that’s what makes you irreplaceable.

Taxes are Human Prep

Your edge in the digital age isn’t the tax prep, it’s the human prep.

It starts with a mindset shift. Your job isn’t to prove how much you know, it’s to help someone understand what they need to know.

Here’s how to flip the script:

• Ask before you answer: What are they really worried about? What’s the outcome they care about most? Start there.

• Talk in takeaways: Lead with the stuff that was too long for them to read, then offer deeper information if they ask for it.

• Ditch the jargon: If they say, “I drive for Uber,” don’t reply all technical with, “Well, as a sole proprietor filing a Schedule C…” Just say, “Yep, that counts as self-employed income.”

• Acknowledge the emotion: “I know this stuff can be overwhelming.” “Totally normal to feel anxious around taxes.” “You’re not the only one. Let’s walk through it together.”

It’s translating, and it’s what people pay for now. A calm, clear voice in the financial noise. Don’t freak them out!

Supporting clients with the newly passed One Big Beautiful Bill (OBBB) is a big opportunity to be proactive. And leveraging the massive power of AI is the way to grasp both the opportunity and achieve AI-first status.

To help paint a clear picture, here’s what I’ve done to wrangle the OBBB and help both myself, my clients and firms seize the opportunity to better serve their clients while also bolstering revenue:

1. Loaded OBBB content into AI.

Yes, I literally fed the machine everything I could get my hands on about the One Big Beautiful Bill. Why? To spin up smart, targeted conversations. Instead of fumbling for words, I’m using AI to script, simulate and stress-test my convos around the OBBB. That means when I sit down to talk about it, I already know what questions to expect, what resistance might rear its head and the best ways to explain value in a way clients understand.

If you want to try this on your own, here are a few industry-specific advisory prompts to get you started:

• What are the top three tax advisory opportunities for restaurants under the OBBB

• Write a client-friendly summary on how OBBB affects restaurants with tipped employees.

• Help me compare service charge vs. traditional tipping models under OBBB.

• What are the compliance risks restaurants face under the new OBBB enforcement guidance?

• Draft a checklist to assess a restaurant’s eligibility for the FICA tip credit.

2. Did my tax research.

I teamed up with the brilliant minds at Blue J to get through the needed research. If you aren’t familiar, Blue J is breaking ground in AI-driven tax research and analysis. Working with Blue J allows me to bring advanced, AI-powered tax law and answers into my OBBB strategies, so clients see not just a bill, but an actionable and legally solid roadmap for their tax outlook.

3. Created detailed presentations.

Because everyone learns differently, I built out slick, client-facing presentations in Gamma. This isn’t your old-school, snooze-fest slide deck creator. Gamma helps quickly (and I mean like lightning fast) create visuals, scenarios and scripts that keep the OBBB conversation dynamic and relevant. With each meeting, both the message and the method are tailored and supported by AI and design, not just hope and a handshake.

Here are a few prompt examples that you can use to test Gamma and build your own presentations:

• Create a one-slide summary of why restaurants need tip credit advisory now under the One Big Beautiful Bill.

• List five bullet points to open a client presentation on the One Big Beautiful Bill tax strategy.

• Build a table for a slide that shows risks vs. rewards of different compensation structures.

[If you want to check Gamma out yourself, here’s a link to get you started.]

Here’s the important thing to remember. I have not just adopted AI for the sake of being “modern.” I’m rolling up my sleeves and weaving AI into every layer of the OBBB experience; behind the scenes and right there in the room with clients.

I view AI as my BBF (business best friend). It’s my reliable partner that makes every part of a client engagement sharper, more strategic and (let’s be honest) a lot less stressful for everyone.

Put AI-first into practice

Being AI-first isn’t a theory for me. It’s an everyday practice. From prepping OBBB content in AI and using Blue J for killer tax insights to building out Gamma-powered decks that keep my conversations on OBBB fresh, informed and client-focused.

The One Big Beautiful Bill represents a big opportunity to be proactive with clients, offering them OBBB support and advisory services that they very much need (but maybe didn’t ask for yet). AI-first firms know this and are using the power of AI across the board to solve this pain point for clients, strengthen relationships and enjoy another profitable revenue stream.

And congratulations to them on their $122M Series D funding round. Cheers to their continued success! 🥂

Now that H.R.1 (AKA OBBBA) has passed, tax experts not only need to adapt to massive changes in US tax, but they also need to communicate these changes to clients. As a headline piece of legislation, H.R.1 has attracted a lot of attention from tax experts and non-tax experts alike. So even if your clients haven’t come to you with questions yet, they likely have them. Keeping up with these questions requires more than just ad hoc responses; it requires a solid communications strategy.

To help you create a communications strategy that delivers clarity, strategic guidance, and proactive solutions in the face of new statutory provisions, compliance challenges, and ongoing uncertainties, we’ve put together answers to your most common comms questions. We’ve also included some tips for using Blue J—which now contains both the tax provisions of H.R.1 and revised statutory provisions in our curated library—to support your communications efforts.

Where Do I Even Start?

Simply put, start with the source. If you want to communicate effectively, you need to understand the source material deeply. While summaries and news articles offer a helpful starting point for approaching this intimidatingly large piece of legislation, there’s no replacement for a deep dive into H.R.1’s legislative text to review the statutory language. After all, the statutory language contains the details, exceptions, and effective dates that will matter most to your clients. By grounding your advice in the actual text, you’ll be able to answer client questions with confidence and accuracy.

‍Blue J Tip: To begin narrowing your research, try asking Blue J which key themes of H.R.1 are most important to large corporations, SMBs, individuals, etc.

Who Should I Be Communicating With?

H.R.1 made headlines for months before it passed, so chances are practically all of your clients are well aware of this law and ready to ask questions. As such, everyone from individual taxpayers to large corporations should be on your send list. But how and what you communicate with these different client types is likely to vary. Because H.R.1 covers a broad array of tax topics—some of which may be more relevant to your clients than others—segmenting your communications will make this process more approachable for both you and your clients.

Blue J Tip: To begin narrowing your research, try asking Blue J which key themes of H.R.1 are most important to large corporations, SMBs, individuals, etc.

Some of the top tax topics you might consider including in your communications are:

Key Topics for Large Corporations

1. Extension and alteration of TCJA provisions, including new section 951B and changes to section 250

2. Permanent section 168(k) bonus depreciation and new section 168(n)

3. Research and development expensing in new section 174A

4. Enhancement of section 163(j) business interest deduction

5. Phaseout of energy tax credits and deductions

Key Topics for Small and Medium Businesses

1. Extension and alteration of TCJA provisions

2. Research and development incentives

3. Reporting and compliance changes

4. Employee retention credit enforcement

5. Expansion of opportunity zones and other credits

6. Accelerated phase-out of electric vehicle and energy credits

Key Topics for Individual Taxpayers

1. Extension and enhancement of the standard deduction and individual tax rates

2. Changes to SALT deduction cap

3. Changes to the child tax credit and other family benefits

4. Deductions for tips, overtime, and car loan interest

5. Limitations and modifications to itemized deductions

6. Charitable contribution deduction for non-itemizers

7. Reforms to tax credits and exclusions

8. New and enhanced savings vehicles

9. Accelerated phase-out of electric vehicle and energy credits

10. Bonus deduction for seniors

11. Reporting and compliance changes

When Should I Be Communicating with Clients?

In order to address the many different aspects of this landmark piece of legislation, you’ll need to start sending out communications as soon as possible. However, you can’t simply stop there. As technical corrections, IRS guidance, regulatory guidance, and the actual tax changes themselves roll out, aim to send ongoing touchpoints to go out alongside these to ensure clients are continually apprised of the most current state of the rules applicable to them. Of course, you’ll also want to set aside resources for ad hoc communications that can’t be scheduled in advance, for all those ‘quick questions’ your clients will still come to you with.

Blue J Tip: In Blue J, you can query H.R.1 directly on the effective dates of various provisions, allowing you to consider provisions that apply this year compared to changes that will be applicable next year.

How Can I Best Share These Updates With Clients?

H.R.1’s effective upheaval of US tax law can be overwhelming—even for tax experts. To get past the initial overwhelm, you’ll need to really prioritize client comprehension in your communications. Aside from avoiding the overuse of tax jargon, you’ll also want to choose mediums that make the most sense for your message. Some clients may prefer detailed memos, while others respond better to webinars, short videos, or infographics. For the really essential information—like updating withholding, adjusting estimated payments, or gathering new documentation—make sure to emphasize the next steps clients need to take. Reiterating the action items will help prevent them from getting lost in the shuffle.

Blue J Tip: Leverage Blue J’s automated drafting to prepare initial drafts of emails, memos, and other communications, using prompts to tailor the tone, style, and length for your clients.

What’s Next?

While adapting to H.R.1 will undoubtedly be a challenge, communicating those changes to clients is a challenge in its own right. By starting with the source, segmenting your research, timing your communications, and focusing on client comprehension, you’ll be in a good position to keep clients up to date on how you’re helping them to navigate this new era of tax.

H.R.1 (formerly known as the One Big Beautiful Bill Act) is one of the most talked-about pieces of tax legislation in recent years. Now that this bill has become law, it’s also become an unavoidable part of day-to-day work for firms of all sizes.

While there’s been plenty of media coverage about H.R.1’s complex path through both the House and Senate, the changes it underwent in both chambers, and what the final version signed by President Trump on July 4th entails, tax professionals are still facing a fundamental question: “What now?”

In this latest Blue J Insights blog, you’ll find everything tax experts need to know to navigate this landmark shift in tax legislation.

Navigating a New Tax Landscape

As its former name implies, if H.R.1 is one thing, it’s big. From state and local tax (SALT) deduction changes to an extension of Tax Cuts and Jobs Act (TCJA) provisions, and special tax deductions for tips and overtime, this new law covers a broad array of tax topics. We won’t unpack all the tax changes this law includes in this blog, but you can find great summaries here and here. Instead, we want to focus on what you need to know for what comes next.

As a tax professional, your clients will look to you for clarity, strategic guidance, and proactive solutions in the face of new statutory provisions, compliance challenges, and ongoing uncertainties. Below, we outline the key steps tax experts should take to navigate the new era of tax ushered in by H.R.1.

1. Tailor Your Research to Your Clients

While there’s no client category that will be left unaffected by this law’s far-reaching implications, different clients will be affected in different ways. As such, when you begin exploring H.R.1 in your tax research, focusing your questions on the areas most relevant to your clients will make this task more approachable.

Key Topics for Large Corporations

1. Extension and alteration of TCJA provisions, including new section 951B and changes to section 250

2. Permanent section 168(k) bonus depreciation and new section 168(n)

3. Research and development expensing in new section 174A

4. Enhancement of section 163(j) business interest deduction

5. Phaseout of energy tax credits and deductions

Key Topics for Small and Medium Businesses

1. Extension and alteration of TCJA provisions

2. Research and development incentives

3. Reporting and compliance changes

4. Employee retention credit enforcement

5. Expansion of opportunity zones and other credits

6. Accelerated phase-out of electric vehicle and energy credits

Key Topics for Individual Taxpayers

1. Extension and enhancement of the standard deduction and individual tax rates

2. Changes to SALT deductions

3. Changes to the child tax credit and other family benefits

4. Deductions for tips, overtime, and car loan interest

5. Limitations and modifications to itemized deductions

6. Charitable contribution deduction for non-itemizers

7. Reforms to tax credits and exclusions

8. New and enhanced savings vehicles

9. Accelerated phase-out of electric vehicle and energy credits

10. Bonus deduction for seniors

11. Reporting and compliance changes

2. Understand the New Statutory Provisions

Aside from getting a grasp of how different areas of H.R.1 are likely to affect your clients, going deep on understanding the new statutory provisions will ensure you have the complete context of what H.R.1 entails.

• Deep dive into legislative text: Assign team members to review the statutory language of H.R.1, again focusing on areas most relevant to your client base.

• Leverage reputable summaries: Use reputable practice articles to supplement your understanding and identify areas where the statutory language is ambiguous or open to interpretation.

• Monitor regulatory guidance: Stay alert for Treasury and IRS guidance, as many H.R.1 provisions require further clarification. Set up alerts for IRS notices, proposed regulations, and FAQs.

3. Update Compliance and Reporting Processes

Maintaining compliance after such a massive upheaval in tax law is no small task. Setting aside time for your team to ensure they’re all up to speed on any new compliance and reporting requirements will help to make this transition smoother.

• Revise internal checklists and workpapers: Update compliance checklists to reflect new deduction limitations, phaseouts, and reporting requirements. Ensure your software and templates can handle new data fields and calculations.

• Coordinate with IT and software providers: Work closely with tax software vendors to ensure timely updates for H.R.1 changes, especially for changes to expensing, business interest deductions, and new compliance requirements.

• Train staff on new rules: Conduct internal training sessions on the mechanics of the new provisions and modifications to existing provisions.

• Enhance data collection: For large and complex clients, establish new data flows to capture the information needed for expanded disclosures.

4. Create Proactive Client Communications

As a headline piece of legislation, H.R.1 occupies a uniquely prominent position in your clients’ minds. Be prepared for them to come with questions, and even more than that, be sure to have key answers prepared in advance.

• Segment client outreach: Develop tailored communications for individuals, passthrough businesses, and large corporations, highlighting the most relevant H.R.1 changes for each group.

• Host webinars and Q&A sessions: Offer educational webinars to explain the new rules, using practical examples and addressing common client scenarios (e.g., SALT deduction limitations, ATI calculations for section 163(j)).

• Prepare FAQs and decision trees: Create client-facing FAQs and flowcharts to help clients self-assess their exposure to new limitations and identify planning opportunities.

• Encourage early engagement: Advise clients to review their entity structures and business plans as compliance with the new rules may require significant lead time and coordination.

5. Address Uncertainties and Unresolved Issues

While H.R.1 has officially passed, there’s still some ambiguity around the contents of this nearly thousand-page document. As we wait for the IRS to propose regulations providing guidance on certain provisions in the statute, there are steps you can take now to navigate any uncertainties.

• Document assumptions and positions: Where statutory language is unclear, document your firm’s interpretive positions and the rationale for client advice. Be prepared to update these positions as guidance emerges.

• Monitor for technical corrections: Track IRS guidance and regulatory developments, including technical corrections and clarifications, and communicate changes promptly to clients.

• Monitor for IRS guidance: Because the IRS is just initiating the process of issuing subregulatory guidance and proposing regulations providing guidance on certain provisions in the statute, you’ll need to keep an eye out for ongoing developments in this area that will help you navigate some of the gray areas in H.R.1.

• Advocate for clients: Encourage clients to participate in comment periods for proposed regulations and to provide feedback to policymakers, especially on issues causing significant administrative burden or uncertainty.

• Plan for flexibility: Advise clients to build flexibility into their structures and processes, allowing for quick adaptation as rules are clarified or changed.

Next Steps for a New Era of Tax

H.R.1 ’s enactment was just the beginning. Now, tax experts need to adapt to a new era of complexity and opportunity in US tax law.

One of the biggest impacts of H.R.1 ’s passage is the increased importance of tax research. With so many changes enacted at once, staying on top of these changes will be a challenge for all tax professionals. Prepare for the future of tax, with the future of tax research.

Learn more about how Blue J can support your team in navigating H.R.1 and more.

Many solopreneurs and smaller firms don’t need a full-blown practice management system to fix this — they need a better way to track workflow. That’s where TaxFlow comes in.

It’s a lightweight, intuitive solution designed specifically for tax pros drowning in spreadsheets but not ready to rip and replace their whole tech stack. Created by someone who’s been there — Ben Vickery, a former accountant turned developer — TaxFlow is the simple, powerful upgrade firms have been waiting for.

Here’s how it started, and why so many firms are making the switch.

Because One More Color-Coded Excel Sheet Was One Too Many

Ben began his tech dev career while working at a local accounting firm in his home state of Colorado. While he started out studying accounting, he quickly realized that technology was his passion, so he changed his major to computer science, never realizing he would one day create a solution that solves a major pain point for firms.

While at the firm, Ben noticed the inefficiencies of organizing and managing data in spreadsheets. Wanting to help solve this issue, he started by building python scripts to automate bookkeeping tasks. However, the real pain point was workflow and tracking hundreds of 1040 tax returns in a spreadsheet. The firm did have a good system for document intake and management, but the actual workflow — who was working on what and project status — was a hot mess of manual updates and missed details.

Ben’s search for a new tool kept leading him back to one place: Full-scale practice management solutions. It was overkill for the firm, which already had parts of its tech stack dialed in. So, he set out to build something simpler — a dedicated workflow tool that would enable team members to ditch the spreadsheets without a full tech stack overhaul.

The result was TaxFlow, a lightweight, real-time workflow solution for firms. Because most just don’t need all the bells and whistles that come with a full practice management solution.

How TaxFlow Works

TaxFlow centers around an “active return list” that gives accountants a live snapshot of all their work. Here’s how it helps firms move beyond spreadsheets to automate workflow within a simple, intuitive platform:

• Entity mapping: Firms can map multiple entities (e.g., 1040, 1120, 1065) to a single client. This is handy for individuals who also have businesses or trusts because everything gets tracked together. Most users set up the main client as an individual, then map related businesses or estates under them.

• Custom fields: Fields like “type,” “year” and “owner” are customizable. Firms can track any kind of return or project, not just standard tax forms. The owner field helps firms with multiple partners or managers keep tabs on their specific workloads.

• Customizable statuses: You can create statuses like “requested,” “review” or “stuck” (for those shoeboxes of receipts that slow everything down). This level of flexibility means you’re not locked into a rigid workflow. You can adapt it to how your firm actually works.

• Task management: Each return has a task list, generated from templates you create. Tasks can be assigned to team members, and as they’re completed, people drop off the outstanding list. You always know who’s responsible for what.

• Tags and filtering: Tags let you group returns by priority, extension status or anything else you want to filter on. Think “high priority” or “extension list.”

• Date tracking: Standard fields like “due date,” “receive date” and “extended date” help you stay on top of deadlines. More custom date options are in the works.

• Percent complete: A visual indicator shows how much of each return’s workflow is done, so nothing falls through the cracks.

The Value of TaxFlow

TaxFlow is a game changer for accounting and tax firms that are tired of wrestling with spreadsheets but don’t want to rip out their tech stack and start over. Here are a few real-world examples of how firms are using TaxFlow:

• Simplifying complex client relationships. Imagine you’re handling tax returns for Claire and Joe who have an individual return, a trust and a company. With TaxFlow, you can map all three entities to the same client, track each return’s progress and make sure nothing gets lost in the shuffle. Most users do this at the individual level and map related businesses or estates under that person, making it easy to see the whole picture at a glance.

• Custom workflows for every firm. One firm might use custom statuses like “requested” for missing documents, “review” for manager sign-off or “stuck” for when a project hits a roadblock like waiting on clients for outstanding receipts. These statuses are fully customizable, so each firm can tailor TaxFlow to match their unique process.

• Task assignment and accountability: Each return has a task list generated from a template. For example, a 1040 return might have tasks for document intake, data entry, review and e-filing. Each task can be assigned to a specific team member, and as tasks are completed, the system automatically updates who has outstanding work. This keeps everyone on the same page and ensures nothing falls through the cracks.

• Easy filtering and prioritization: Tags like “high priority” or “extension” let you quickly filter and group returns. During busy season, you can instantly pull up all high-priority clients or see which returns are on extension, making it easier to manage deadlines and workload.

Firms love that TaxFlow is fast to implement, flexible and focused on the real-world needs of small to midsize practices, especially those with a heavy 1040 workload. By giving teams a clear, real-time view of all their work, the tool reduces errors, keeps everyone accountable and helps firms handle busy season chaos with less stress.

Even better, TaxFlow doesn’t force firms into a one-size-fits-all workflow.

Built to Solve a Real Issue

Ben’s been running TaxFlow full-time for less than a year, after three years of refining the product based on user feedback. The user base has doubled since he went all in, and he’s now focused on expanding TaxFlow’s capabilities, like handling more complex entity relationships and adding more custom date fields. He also plans to add more bulk operations and a robust notification system.

Ben’s approach is to keep listening to accountants and tax pros, iterate quickly and make sure TaxFlow stays simple and practical as it grows. That sounds like a winning plan.

TaxFlow evolved out of real-world frustration and a desire to make accountants’ lives easier. By focusing on workflow — not full practice management — Ben has created a tool that helps firms finally move out of spreadsheets and into streamlined, automated workflows.

As TaxFlow continues to evolve, it’s clear that sometimes the simplest solution is the one accountants have been waiting for all along. And we do love simple!

On paper, things looked promising: fewer last-minute IRS changes, relatively stable filing deadlines and plenty of warning about what was coming. But for many CPAs, it still felt chaotic, exhausting and broken.

Maybe the automations didn’t quite work the way you hoped. Maybe your team was stretched too thin. Maybe you hit the wall at midnight on April 14 and thought: There has to be a better way.

There is! But here’s the thing: it doesn’t start next tax season. It starts now.

Why Now Is Your Power Window

If you want next tax season to actually feel different, you have to lead differently. And you have to make those changes today.

Right now, everything is fresh. The bottlenecks, the burnout, the late nights are not distant memories. They’re real. And that makes now the perfect moment to take action. Not in January, when you’re already behind. Not in December, when holiday hours hit. Right now!

Fix What Broke, Automate What Slowed You Down

Don’t miss this webinar I’m doing with Progress ShareFile’s Anna van Erven:

After the Rush: How CPAs Can Automate and Improve for Next Tax Season

• Wednesday, May 21, 2025

• 1:00 – 2:00 PM EDT

• Register here - bit.ly/3GLxiRA

You’ll walk away with:

• The technology and tools that speed up returns, without hiring more people.

• Specific steps where automation and AI give you time and sanity back.

• A clear, tactical breakdown of how to implement automation at every stage from prep to filing to done.

Don’t White-Knuckle Another Season

We’re done hoping next year will be better. It won’t be — unless you take action now.

Let’s stop waiting for the relief to show up. Let’s design it. And let’s build the firm you actually want to work in.

After 10+ years developing AI-driven tax solutions, I'm deeply concerned by recent proposals to slash the Internal Revenue Service workforce by up to 50%.

The IRS isn't bloated—it's understaffed. The agency already struggles to meet existing obligations; a reduction of this magnitude would severely worsen delays, erode taxpayer service, and substantially widen the tax gap.

As CEO of Blue J, a company dedicated to AI-driven tax research, I'm deeply committed to the thoughtful integration of technology in tax administration. Indeed, greater reliance on AI could benefit my company directly. But even from this vantage point, abruptly replacing half the IRS workforce with technology isn't realistic or responsible public policy. Effective modernization must be phased, carefully planned, and structured to enhance—not undermine—the essential human expertise within the IRS.

In a recent bipartisan statement, seven former IRS Commissioners emphasized these cuts would "shift the burden of funding the government from people who shirk their taxes to the honest people who pay them," undermining efforts to modernize customer service and simplify tax filing processes.

Tax administration isn't partisan—it's foundational. Effective tax administration ensures fairness, funds public services, and maintains taxpayer confidence. Rather than dismantling this critical institution, let's responsibly invest in modernizing it, integrating human and technological capabilities to secure America’s fiscal health.

I’d especially welcome insights from tax professionals or those experienced in tax administration:

1. What specific impacts do you foresee from dramatically reducing IRS staffing?

2. How can we best leverage technology to responsibly support and improve—not dismantle—this essential institution?

Contact me via my LinkedIn profile with your thoughts.

I was lucky enough to moderate a panel at the ADP Accountant Connect Summit and I’m going to break down what the panelists said so you make sure your clients know what they’re up against. They were Taxgirl Kelly Phillips Erb and Ron Ulrich, retirement services executive, and Amy Miller, senior director of government affairs, both with ADP.

1. Know Where Your Employees Are Working

Rule #1 of remote work compliance: location matters. If your client’s employees are working in states other than where the business is headquartered, that could trigger tax nexus. Translation? The business might owe payroll taxes or even corporate income taxes in those states. As their trusted CPA, you need to make sure they’re tracking where their employees are and understanding the tax implications.

Pro Tip: Encourage clients to implement a system for tracking remote employee locations. It’s easier than cleaning up a tax mess later.

2. State Income Tax Withholding Gets Tricky

Employees working in different states may need state income taxes withheld based on their location. Some states have reciprocal agreements (shoutout to Pennsylvania for being a rockstar here), but others? Not so much. Employers need to navigate these rules carefully to avoid double taxation and keep their workers happy.

3. Paid Family Leave and Other State Mandates

Let’s not forget about paid family and medical leave. Many states have implemented their own rules, and some of them are pulling payroll taxes from remote workers even if the employer isn’t based there. Ouch. Make sure your clients know which states are doing this and how it impacts their payroll compliance.

4. Home Office Deductions: Clearing Up Misconceptions

Employees can’t claim the home office deduction if they’re on a W-2. (Thanks, TCJA!) But employers can step up by reimbursing home office expenses. This can be a great way to support remote workers while scoring some goodwill. If your clients aren’t offering stipends for internet, electricity or office furniture, now’s the time to start the conversation.

5. SALT Cap: The Hidden Remote Work Issue

State and local tax (SALT) caps are still a big deal. Remote workers who moved to high-tax states might feel the pinch, and your clients could see talent migration to low-tax states like Florida or Texas. This is a strategic issue for businesses, and CPAs should be part of the discussion about where their clients’ teams are based and what that means for tax planning.

6. Employment Laws and Wage Compliance

Remote work doesn’t mean a free pass on wage and hour laws. Some states require different minimum wages, overtime rules or meal breaks. Employers need to stay on top of these regulations to avoid compliance nightmares. As their CPA, you can flag these issues and help them navigate the complexity.

7. Double-Check Your Nexus

Remember, even a single remote worker in another state can create tax nexus. And it’s not just income tax; it could also mean sales tax, franchise tax or even gross receipts tax. Get ahead of this by working with your clients to analyze where they have potential nexus and how to address it proactively.

8. Communication Is Key

At the end of the day, compliance is about staying ahead of the curve. Make sure your clients are regularly communicating with their employees about remote work policies and expectations. And don’t forget to communicate with them about their tax obligations as well. A proactive CPA is a lifesaver in today’s remote work world.

Embrace the Opportunity

Remote work may come with its challenges, but it’s also an opportunity for CPAs to shine as trusted advisors. By helping your clients navigate the complex world of compliance, you’re adding real value to their business and setting them up for success. So let’s get out there and make remote work work — for everyone!

This topic came up in the ADP Accountant Connect Summit paneI recently moderated. Here’s the lowdown shared by Taxgirl Kelly Phillips Erb and Ron Ulrich, retirement services executive, and Amy Miller, senior director of government affairs, both with ADP.

1. Automatic Enrollment Is Groundbreaking

Starting January 1, 2025, all new retirement plans must include automatic enrollment. That means employees will be enrolled at a minimum of 3% of their pay, with automatic increases each year until they hit at least 10%. This is HUGE. Why? Because auto-enrollment gets more people saving without them even thinking about it. And for accountants, it’s a great conversation starter with your clients about compliance and plan setup.

2. Catch-Up Contributions Are Getting a Glow-Up

Starting in 2025, employees aged 60 to 63 can make “super” catch-up contributions — 150% of the regular catch-up limit! This is an amazing chance for near-retirees to bulk up their savings. As a CPA, you should be encouraging your clients to spread the word to their teams and ensure their payroll systems are set up to handle this.

3. Part-Time Employees Can’t Be Ignored

SECURE 2.0 makes it easier for part-time employees to access retirement plans. If someone works 500 hours a year for two consecutive years, they’ll be eligible to participate in their company’s retirement plan starting in 2025. That’s down from the previous three-year requirement. Help your clients get a handle on this now — tracking hours and planning ahead will save headaches later.

4. The Saver’s Match: Free Money for Low-Income Employees

Coming in 2027, this program replaces the current tax credit with a match directly deposited into an employee’s retirement account. Eligible employees will get 50% of their contributions (up to $2,000) matched by the government. Yep, you read that right — free money. Make sure your clients’ employees know about this benefit so they can start planning their savings strategies.

5. New Flexibility for SIMPLE and SEP Plans

Roth contributions are now an option for SIMPLE and SEP IRAs. For small business clients looking to give their employees more choices and better tax planning options, this is a big deal. It’s also a great time for CPAs to pitch plan upgrades to clients who haven’t revisited their retirement options in a while.

6. Student Loan Payments = Retirement Contributions

This is amazing for young professionals struggling with student debt. Starting in 2024, employers can treat student loan payments as retirement contributions, meaning they can make matching contributions to retirement plans even if the employee can’t afford to contribute directly. This is a win-win for employers trying to attract top talent and employees trying to dig out of debt.

7. Penalty-Free Emergency Withdrawals

Life happens, and SECURE 2.0 understands that. Employees can now take up to $1,000 annually from their retirement savings for emergency expenses without facing the dreaded 10% early withdrawal penalty. It’s another reason why you, as their trusted advisor, should be talking about these plans with your clients.

8. What’s Next: Guidance and Updates

With over 90 provisions in SECURE 2.0, there’s still plenty of guidance to come from the IRS and DOL. From technical corrections to clarifications on implementation, accountants need to stay informed and proactive. Keep an eye out for updates and make sure your clients’ plans are up to date.

Step Up as the Trusted Advisor

SECURE 2.0 isn’t just about compliance; it’s an opportunity for CPAs to provide real value. From guiding plan design to helping clients take advantage of tax credits and benefits, you can become a go-to advisor on all things retirement.

So, what are you waiting for? Start these conversations today, and position yourself as the expert your clients need. SECURE 2.0 is here to stay, and it’s time to help your clients make the most of it!

This is what I learned from a tax panel I moderated at the ADP Accountant Connect Summit that included Taxgirl Kelly Phillips Erb and Ron Ulrich, retirement services executive, and Amy Miller, senior director of government affairs, both with ADP.

What Is Direct File?

Direct File is a free, IRS-created platform where eligible taxpayers (think: simple W-2 earners) can file their taxes without needing third-party software or services. The initial pilot program got solid reviews in 2024, and now it’s expanding to include more states and mobile filing options. It’s a sleek and straightforward solution for people with uncomplicated returns, and honestly, it’s a great tool for taxpayers who just need to get their taxes done fast and cheap.

Why Some People Are Nervous

Some tax software providers and preparers are worried that Direct File is the beginning of the IRS doing it all — prepping, filing and possibly replacing parts of the tax industry. Plus, there’s the “fox guarding the henhouse” argument: can we trust the IRS to offer a service where they’re both helping you file and potentially auditing your return?

But Direct File isn’t for everyone, and it’s not replacing CPAs any time soon. Let’s focus on what this means for us in the profession.

1. It’s Time to Pivot

If your bread and butter is 1040 prep for simple returns, Direct File might take a bite out of that business. But guess what? That’s your signal to pivot. Tax preparation is just the tip of the iceberg. Now’s the time to lean into advisory services, like tax planning, wealth management or business consulting. The more complex the client’s needs, the more valuable you become.

2. It’s Not for Every Taxpayer

Direct File is designed for basic filers, those W-2 earners with little to no deductions. Got a small business? Rental income? Crypto? Forget it. Those taxpayers still need a pro to navigate the complexities. And as tax laws keep changing, even the “easy” stuff will likely get harder for those going it alone.

3. Educate Your Clients

You probably don’t want to spend time on a $100 return for someone’s teenager anyway. So why not use this as an opportunity to educate your clients? Tell them about Direct File as a free option for their kids or for those super-basic situations. It’s a goodwill gesture that frees you up to focus on the clients who need real help. Plus, when those basic filers eventually have a more complicated situation, who do you think they’ll come to? The CPA who looked out for them.

4. Watch for State-Level Impacts

The big innovation in 2025 is that Direct File is adding state tax filing for more states. That seamless integration is going to appeal to a lot of taxpayers. But every state’s tax system is different, and you know the devil is in the details. Be prepared to help clients who might get tripped up on state-specific rules or deductions.

5. Funding and the Future

Let’s not forget that Direct File’s future depends on funding. It’s part of the Inflation Reduction Act, and if those dollars dry up, so could the program’s expansion. For now, keep an eye on how Congress handles this, and be ready to pivot if Direct File gets scaled back or revamped.

6. The Real Opportunity for CPAs

Direct File is a chance to elevate your value. While the IRS is helping the simple filers, you can focus on offering:

• Tax strategy and planning

• Multi-state compliance

• Business consulting

• Navigating new tax laws and credits

These are the areas where CPAs shine. Direct File can’t replace the nuanced advice and support that only a trusted advisor can provide.

Don’t Fear Change

Change is inevitable, but it doesn’t have to be scary. Direct File is just another tool in the tax ecosystem, and it’s not here to take your job. Instead, it’s your nudge to double down on your strengths and shift toward more value-added services. Your clients need you now more than ever, and this is your time to show them why.

So, let’s not fear Direct File. Let’s embrace it and use it as a springboard to take our practices to the next level. After all, we’re CPAs — we’ve got this!

This was the topic of a session I recently moderated at the ADP Accountant Connect Summit, and I’m breaking down what I learned from the panelists: Taxgirl Kelly Phillips Erb and Ron Ulrich, retirement services executive, and Amy Miller, senior director of government affairs, both with ADP.

1. Key Political Appointments and Their Influence

Scott Bessent is the new Treasury Secretary, so brace yourself for some big pro-business moves. He’s all about fiscal conservatism and cutting red tape, which means the Tax Cuts and Jobs Act (TCJA) provisions are likely sticking around.

2. TCJA Provisions: What’s Staying and What’s Changing?

The administration wants to extend and even expand some major TCJA perks. Here’s what’s on the table:

• Section 199A Qualified Business Income Deduction: There’s talk of expanding it to cover more professionals, like attorneys and physicians.

• Immediate Expensing of R&D Costs: They’re looking to reverse the amortization requirement, which is a win for businesses focused on innovation.

• Corporate Tax Rates: No cuts are expected yet, but there’s no push to raise them either. Business-friendly vibes all around.

3. IRS Enforcement: What to Expect

The IRS might ease up on audits for big corporations and wealthy individuals, but small businesses can’t relax just yet. Make sure your client’s records are tight and compliance is up-to-date because things could change. Heads up for:

• Audit Prioritization: Small businesses are still in the spotlight.

• Secure 2.0 Act Compliance: New rules like automatic retirement plan enrollment are here.

4. What’s Happening with the Inflation Reduction Act?

Big shakeups could be coming. The administration wants to roll back parts of the Inflation Reduction Act, especially tax credits for green energy. If a client was counting on those incentives, stay tuned.

5. The Direct File Program: A Game Changer?

The IRS’s Direct File program — where folks can file their taxes for free — has been a hit. Will it expand? That’s up in the air, but if it does, CPAs might need to rethink how they offer value. Time to lean into advisory services!

6. Disaster Relief: What’s Next?

Natural disasters keep hitting us hard, and there’s a push to make tax relief more predictable and consistent. Those in a disaster-prone area should be ready to take advantage of upcoming relief measures.

7. Remote Work and Tax Challenges

Remote work isn’t going anywhere, and tax rules are getting messier by the minute. Here's what to look out for:

• Home Office Deductions: Employees are still out of luck, but businesses can offer reimbursement programs.

• State Tax Nexus: Make sure you know where employees are working — multi-state tax liabilities are no joke.

Stay in the Know and Stay Ahead!

The tax world is always evolving, and this year’s no exception. Staying informed and proactive is the name of the game. Keep talking to your clients, stay updated on legislation and look for ways to provide value beyond compliance.

By staying on top of these changes, you’ll be ready to crush it no matter what comes your way. Let’s go make tax season awesome!