OUTLOOK & ANALYSIS

Tax Season Faceplant: Accountants Overrun by Late Chaos

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Businesswoman with headache at laptop

 

Technology and the economy threw some wrenches into the mix.

By CPA Trendlines Research

This year’s tax season seems to have been pretty good, according to the latest from the CPA Trendlines Busy Season Barometer, though not quite as good as expected.

Survey respondents went into the season with cautiously optimistic expectations. The percentage who felt that this year they were better prepared for the three-month grind remains constant at about 46 percent, comparing December/January with early April.

MORE Barometer: Accountants Turn Negative Amid Tariffs, Trade, Uncertainty | What CPA Firms Could Do Better | SURVEY: Which Client Industries Will Grow This Year | Tax Preparers Share Advice for Your Clients | Staffing, Tech, Prices Top Tax Pros’ Concerns | Tax Pros Gear Up for a Better Busy Season | Tax Season 2025 Begins. Ready or Not.
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But many who figured they were as prepared this year as ever were apparently in for a sad surprise. Before the season, 41 percent said they were prepared as well as in 2024, but that number plummeted to 25 percent by April. The shift is toward the “worse” end of the scale, with the “much worse” response doubling from 3 percent to 6 percent, and “somewhat worse” nearly doubling from 11 percent to almost 20 percent.
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Refunds Up 5% as Tax Returns Top 100 Million

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chart of IRS tax filing data

Tax professionals still edge out DIYers.

By Beth Bellor

As the tax season slipped into April, the number of individual income tax returns filed topped 100 million.

MORE: Tax Pros Rev Up Filing Pace as DIYers Lag | Tax Returns Nearly Match 2024 Rates | Tax Pros Edge DIYers in E-Filings | Tax Refund Totals Up 7% | Tax Pros Handle 46% of E-Filings | Tax Refund Totals Up 10% | Tax Refunds Plummet, but No Worries | Tax Refunds Up 18% Early On | First Tax Filing Reports Are In
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The Internal Revenue Service had received 101.4 million returns as of April 4, the latest data available, down 0.4 percent from the same period in 2024. It had processed 100.3 million returns, up 0.2 percent.
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Accountants Turn Negative Amid Tariffs, Trade, Uncertainty

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man holding umbrella while standing in stormy ocean

Survey respondents aren’t shy about placing blame.

Launch survey here

By CPA Trendlines Research

If you’re getting a little nervous about the general business environment, you’re not alone.

The 2025 CPA Trendlines Busy Season Barometer has picked up a serious swing toward pessimism among the professionals who know the numbers.

MORE Barometer: What CPA Firms Could Do Better | SURVEY: Which Client Industries Will Grow This Year | Tax Preparers Share Advice for Your Clients | Staffing, Tech, Prices Top Tax Pros’ Concerns | Tax Pros Gear Up for a Better Busy Season | Tax Season 2025 Begins. Ready or Not. | MORE Surveys & Research
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Before the inauguration, the outlook for the nation’s economy was moderately hunky-dory. Almost 60 percent of respondents predicted the economy would get better over the next 12-18 months. Only 26 percent figured it would get worse.

Pessimism Doubles

That was then. This is now. By the Ides of March, 68 percent saw an economic downturn, and only 21 percent were optimistic. Now, by the second week of April, 74 percent are hunkering in the pessimist camp. In fact, the share of those who fear things will get “much worse” has doubled from 14.5 to 29 percent.

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What Struggling Small Businesses Need

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bar charts

Digital apps and credit cards are helping.

By CPA Trendlines Research

Small businesses with one to 100 employees were struggling a bit in the year ending October 2024, according to a survey conducted by Intuit Quickbooks, but may be starting to get back on their feet.

MORE: Five Ways to Head Off Reluctant Leadership | Big Growth Coming for Client Advisory Services | Scams Getting More Sophisticated | You Need Capable Successors for a Seamless Transition | Mark Koziel: The Future of the Profession | Gear Up for Growth | America’s Running Short of Financial Advisors | Maybe the Pipeline Problem Is Technology | What If the Staffing Shortage Is Just a Myth? | Staffing, Tech, Prices Top Tax Pros’ Concerns
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The survey results may be of interest to accounting practices that are advising small businesses in various sectors and regions. In that digital and AI applications are giving advantage to companies that use them, accounting clients may be looking for advice on how to put these tools to work.
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Brian Hock: Qualifications Matter More Than Ever | Accounting Influencers

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“It’s a five-year degree for accounting versus four years for finance, and finance graduates often earn more.”

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Accounting Influencers
with Rob Brown

Brian Hock, founder of HOCK International, argues that accounting certifications and qualifications are more important than ever in an era of automation and artificial intelligence.

Hock says the rapid shift in accounting standards is spawning a host of new specialty skills, including data analytics, cybersecurity, and automation.

“When I took the CPA exam almost 30 years ago, it was paper-and-pencil,” Hock recalls. “Now, technology is embedded in every aspect of accounting.”

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