Tax practice issues in the age of COVID-19.

• Author: Walker, April

COVID-19 has upended the world, and its impact will likely be visible throughout society and the economy for years to come. The immediate impact on tax professionals was significant with myriad extensions of tax return filing and payment deadlines. Payments for 2019 taxes were delayed, along with 2020 estimated tax payments. Payments were also suspended for prior-year taxes pursuant to installment agreements and offers in compromise.

The pandemic also changed the way many practices operate due to stay-athome orders. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, created the Paycheck Protection Program (PPP) and caused many tax practitioners to suddenly become experts in U.S. Small Business Administration (SBA) funding options. These are just some of the changes CPA firms have experienced.

In the new coronavirus environment, accounting firms should consider the following items related to tax compliance and advisory matters.

Cybersecurity issues

One aspect of governments' response to COVID-19 was to prohibit nonessential businesses from operating and to issue shelter-at-home orders for large segments of the population. While most jurisdictions classified CPA firms as essential services and allowed them to continue professional service operations, many firms chose to close offices or limit employees' coming into the office, transitioning instead to remote working from home. Even when offices could remain open, health care or child care concerns may have made remote work the best option for many employees. For some firms, this may have been the first time that client work was performed outside of an office setting. Home laptops or desktops might have been the only alternative for working outside the office in some cases. Communication with clients likely converted from primarily office phones to personal cellphones.

This became a prime time for device hackers eager to exploit turmoil and chaos. The conversion to different devices and manners of communication created opportunities for cybercriminals to steal and manipulate personal financial information and particularly to engage in identity theft.

Due to the continuing expected effects of the pandemic, there is an urgent need to carefully review cybersecurity protocols. CPAs should review the AICPA's Privacy Management Framework (PMF), which is designed to assist management in creating an effective information privacy program that addresses privacy obligations and...