Free Pre-Tax Season Client Letter Template for Tax Professionals

Tax Season Client Letter Template for Tax Pros

First day of e-fiing to IRS is Monday January 29th, if you haven’t already heard!

  • I’m working on the communications we are going to send our own tax clients before tax season really gets rolling.
  • I figured I’d quick share some of my materials with you in case it’s helpful in your communications with your own clients.

Something we always want to tell our clients about before tax season starts are any new changes to tax law.

I believe that making people aware of changes makes people more likely to use a professional, rather than doing it themselves and butchering the job because they weren’t aware of new changes that could have helped them.

With that in mind, here (below the line) are 7 tax changes I’ll be telling our clients about, so that our clients will feel confident that we stay on top of all the changes that affect them, and they won’t get confused and view our service as “all you’re doing is filling out tax forms, what’s the big deal?”

You can feel free to customize this content for your own client communications to increase your clients’ perception of the value of your service:


7 Major Tax Changes to Know for this Tax Season

Tax rules and regulations continue to change rapidly, and we continue to monitor ongoing tax changes so that our clients get the best tax advantages available, while also being protected from tax changes that can create risks and problems.

Here then are 7 major tax changes to keep in mind as this tax season begins:

  1. The IRS postponed a new rule that was supposed to take effect this year, which would have caused many millions of people to receive 1099’s for money received via digital payment services such as Venmo, CashApp, and PayPal.
  2. A government agency called the Financial Crimes Enforcement Network, or “FinCEN” for short, has put in place a new requirement for “smaller” business entities (20 or fewer full-time employees). These business entities, such as LLC’s and corporations, must now file a “Beneficial Ownership Information Report” that gives FinCEN information about who owns and who controls those business entities. If you own or control part or all of an LLC or corporation that has 20 or fewer full-time employees, please mention this to your Pronto Tax Consultant so that we can direct you in the best ways. Penalties for non-compliance with this new rule are extremely severe.
  3. “Green energy” tax credits for homeowners, landlords, and vehicle owners have changed and, in some cases, improved. If you invested money into solar panels, energy efficient windows or doors, electric vehicle(s), or anything else related to green energy, please provide the details of what you purchased, the date of purchase, and the amount invested to your Pronto Tax Consultant so that we can maximize any applicable tax breaks.
  4. The IRS is trying to allow taxpayers to “self-service” more of your needs on their website, rather than needing to call IRS by phone. You can now view much of your own tax information such as past due tax amounts, income amounts for each year you filed taxes, etc. by starting an IRS Online Account and logging into it: https://www.irs.gov/payments/your-online-account
  5. Student loan repayments have started up again (for most people) after the COVID-induced “pause” in repayment requirements. To lighten the burden, IRS has a new rule that allows certain employees to count their student loan repayment as a 401K contribution for the purposes of “employer matching.” If you’re paying back a student loan and your employer has a 401K matching policy, this option should be explored, as it could result in some “free money” being put into your 401K by your employer.
  6. The IRS is targeting people who have been making money with cryptocurrency but not reporting or paying taxes on it. IRS has successfully sued several of the biggest cryptocurrency exchanges to force the exchanges to give the IRS data about certain of its users for the purposes of collecting tax. And the Treasury Department has announced that 1099’s for cryptocurrency will start to be issued sometime soon, likely in 2025.
  7. As you probably saw on the news, the IRS received from Congress, through the “Inflation Reduction Act,” a massive amount of new funding over the next 10 years. 47% of the new funding is allocated for enforcement, meaning additional tax collection efforts such as IRS audits and IRS letters. Please make sure to only use tax professionals who back up their work year-round, rain or shine (we do).

We hope this doesn’t sound like “gloom and doom”! That being said, a lot of the more important tax changes do revolve around the IRS desire to collect more taxes.

IRS recently announced that the “Tax Gap”–the difference between the amount of taxes actually collected per year and the amount that would be collected if everyone reported all their income–is $688 billion per year for tax year 2021. In 2016, the IRS had that number at $496 billion. From IRS point of view, then, that number is going in the wrong direction…

No reason to be “afraid,” but yes reason to be informed.

We hope this communication helps you feel informed, educated, and empowered, and we hope to see you soon to help you with any of your tax needs.

P.S. Thank you for your referrals of friends and family–your recommendations and referrals mean the world to us and we appreciate them greatly!


If you love to keep up with all the latest tax changes and understand how new tax changes affect your clients specifically, please remember:

Helping you stay “on top of it all” is a BIG part of what we love to do for our Pronto Tax School Members!

To that end, please be advised that the “right before tax season” versions of our Federal Tax Update Course and our California Tax Update Course have now been posted to your Pronto Tax School account.

  • If you’re a Pronto Tax School Member, you can log into your Pronto Tax School account and view all the most recent changes right now.
  • These “right before tax season” versions of our update courses have all the most recent changes noted in green ink (so that you can easily “scan” for new changes rather than needing to read through the entire textbook if you’ve already completed your course in a previous version).
  • If you’re a Not Yet Member, click here to view Membership Plans & Benefits and then enroll and get immediate access to our best-selling tax update courses along with many other benefits, including support from peers & mentors during tax season.

If you have questions about Pronto Tax School Membership Plans such as wondering how to best utilize your plan benefits if you’re an existing member, would a plan help you, which plan is right for your specific needs and why, etc., please don’t hesitate to reach out to our dedicated support team:

Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.

Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.