In the final days of tax season, tax professionals have been grinding through their clients’ tax returns while trying to reassure them in the midst of reports of layoffs and budget cuts at the Internal Revenue Service and the uncertain path of tax cuts legislation in Congress.

The uncertainty may be slowing down filings from taxpayers, which have been running behind previous years’ numbers.

“Not everyone is being as quick to turn in all the things that I need them to turn in, so we’ve been doing a lot of reaching out to clients, trying to get them to respond and upload documents that we need,” said Timothy Wingate Jr., EA, founder and president of G+F Business & Financial Consulting in West Palm Beach, Florida, and a member of Intuit’s Tax Customer Council. “I don’t know if they’re seeing a slowdown on their end where they’re not receiving documents in a timely fashion from their different employers or from other agencies. We’ve kind of come down to the wire. Usually clients are pretty quick.:Last year, about February, we didn’t have to really email them. They emailed us. I don’t know what’s really driving that, but clients are just moving a little bit slower.”

Taxpayers who live in areas hit by natural disasters will get some extra time to file, although only a few more weeks. “Many of our clients are asking questions whether to file a return or not in light of the variety of news about the potential reduction in force at the IRS,” said Miklos Ringbauer, founder of MiklosCPA in Southern California. “Taxpayers face challenges collecting information and attempting to remember what taxable activities they were engaged in. Many of them forget the 1099-NECs, 1099-Ks or 1099-HSA distributions and other required documents. This is especially true of those who are impacted by the Los Angeles fires. Our team is working tirelessly to help our clients to stay focused and locate the missing information so taxpayers can complete their filings and receive their tax refunds as soon as possible.”

Many clients will be filing for extensions. “We anticipate having a higher level of extensions this year versus previous years, as many of our taxpayers have been impacted by the fires of Los Angeles County,” Ringbauer added.

Robert S. Seltzer, a CPA at Seltzer Business Management Inc. in Los Angeles, lost his home in the Palisades fire. “The IRS and [state] have postponed the due date for returns and payment of tax for individuals and all entities,” Selzer said. “In addition, because I was affected by the fire and we maintain records for clients who live outside of our county, we were able to do a bulk extension request. 

“We’re working at a consistent deliberate pace as opposed to crazy tax season hours,” he added. “Instead of taking a break in late spring and early summer, we’ll keep the pace up so that September and October aren’t too crazy.”

Others have been experiencing problems with the cutbacks in IRS employees. “The concern is, if we don’t have access to the IRS for timely information, the IRS clients, which [includes] both practitioners and ultimately our clients and taxpayers, are not going to be able to have the ability to be serviced correctly,” said Joseph Perry, CPA, national tax leader and managing director at the accounting and professional services firm CBIZ. “We had a situation where one of our clients was audited, and they were done with the audit with ‘no change.’ The auditor was ready to submit his submission, but they’re no longer there. So what happens? Now it has to go back to the supervisor, and either the supervisor will have to take that case on and continue with the no change, or if there’s any question, then there may have to be a re-audit. As long as the work papers support the ‘no change,’ they can’t question them anymore. I’ve seen this before in the past where an auditor was moved, and it’s almost like starting all over again. We know of at least one example where an audit was closed, and this will definitely affect the taxpayer. I think you will see some audits being shifted. I know some of the caseload is getting moved around.”

Wingate is still hearing back from the IRS about clients who have cases with the agency. “As far as the IRS goes, I have a couple tax resolution cases out there, and I’m still receiving communication from the IRS that’s pretty timely,” he said. “I just had a client today who just gave me a letter from the IRS that was sent out in January, and he’s just now opened it. But he got that out to me, and they’re reassessing his tax from back in 2022, so it does seem that the IRS is still moving at a fairly decent pace. Maybe that’s because of technology.”

The political turmoil has been affecting tax professionals as well as clients. “Clients have been commenting on political developments affecting the IRS,” said Jean-Luc Bourdon, CPA, of Lucent Wealth Planning in Santa Barbara, California. Some express frustration with reduced government services while tax collection continues unchanged: ‘They’ll cut service but still want money,’ a taxpayer said. Another said, ‘I guess the IRS is still collecting taxes.'”

The reports of cutbacks at the IRS are bound to have an impact on taxpayer actions. “Taxpayers are thinking of how IRS staffing reductions affect their own tax situations, and it affects their behavior in subtle ways,” Bourdon said. “One client faced with estimating cost basis for stocks with unknown purchase prices found comfort in the reduced likelihood of scrutiny. A homeowner who sold his property struggled with the complexity of differentiating between routine repairs and capital improvements over many years. He took the stressful task more lightly when considering the diminished chances of his calculations becoming contentiously challenged given current IRS resource constraints.”

“Taxpayers are adjusting their compliance anxiety levels based on their perception of enforcement realities,” Bourdon added.

The IRS cutbacks may be showing up in other ways that reflect the shrinking workforce. “With the changes at the IRS, we’ve recently seen an increase in notices where the IRS has unfortunately failed to apply payments made by check to the correct taxpayer accounts,” said Adam Goehring, a principal with Baker Tilly’s tax team in Minneapolis. “We’ve been recommending to all of our clients to make any and all tax payments via their account at IRS.gov.”

Clients are also concerned about cutbacks in the Social Security Administration. “There’s been a reluctance from some clients to apply overpayments to 2025 tax,” said Mary Kay Foss, a CPA in Carlsbad, California. “They want cash refunds in case they might not be available later. There’s some concern that Social Security payments will stop or slow down. I’m not used to clients who are as aware of cash as in past years. There are also more extensions this year, it seems.”

Form 1099-K surprises

The tumultuous stock market may be one reason why clients have been putting off their tax filings this year, as well as the lowered threshold for receiving the Form 1099-K from third parties like payment apps and gig economy businesses. “The stock market is down, and we are calling people to tell them they owe taxes for 2024 when the market was soaring. Not fun,” said Gail Rosen, a CPA in Martinsville, New Jersey. 

“Many clients suddenly have a business we never knew about [but do now] due to the 1099-Ks they received,” Rosen added. “It’s phone calls explaining cost of goods sold and deductible expenses.”

Wingate has been careful to tell his clients ahead of time to anticipate receiving those 1099-K forms. “The only people who would have been surprised is if they’re not working with an accounting firm or an accountant because most accountants were communicating this out months and months in advance, so clients were expecting them and were waiting for them,” he said. “In our case, we explained how important it is when you work with an accounting firm, and especially when you receive those 1099-Ks, you need to be doing other things to offset that income.”

TCJA concerns

Other tax clients are concerned about the expiring provisions of the Tax Cuts and Jobs Act and other concerning financial news. 

“There’s been confusion this year because of the general financial news, cutbacks at the IRS, rumors and speculation,” said Michael Brennan, CPA and director of tax services at Berkowitz, Pollack Brant Advisors + CPAs, New York. “We’ve had some clients jokingly wonder if they even need to file this year. We’ve advised them to assume it’s business as usual.” 

“We aren’t encountering any issues with the 1099-K reporting,” Brennan added. “If anything, the 1099-K reporting has prompted more small businesses to become more engaged with keeping up-to-date and accurate financial records.”  

“A lot of the conversations we are having are around the expiring [TCJA] provisions,” Brennan said. “Bonus depreciation, estate and gift taxes, the pass-through income deduction, mortgage interest deduction and the SALT cap are topics on clients’ minds.”

“It’s difficult for clients to make financial and tax plans when there’s uncertainty and speculation,” Brennan said. “We’re hoping Congress makes decisions earlier in the year so clients have enough time to adjust and adapt.”

The fate of those expiring tax breaks has become part of tax season consultations. “The uncertainty regarding many of the sunsetting TCJA provisions is front and center in our conversations with clients,” said Benjamin Aspir, CPA, a tax partner with Eisner Advisory Group in Iselin, New Jersey. “Additionally, the 163(j) 30% limit on tax-adjusted EBIT has been felt by many clients that incur material interest expense.” 

“The recent increase in late 2024 in the 1099-K threshold to $5,000 for 2024 alleviated many of the concerns of our clients,” Aspir added. “[Next year] may be a different situation, as the threshold decreases significantly.”

Stock market gyrations

The TCJA and the turbulent stock market alike have been causing angst.

“With the potential TCJA sunset [this year], we’ve been having many conversations about both income tax planning and estate tax planning for 2025,” Goehring said.

“With recent stock market conditions, we’ve been having discussions with clients around their cash flow management for April 15 tax payments and various strategies,” Goehring added.

“This tax season was all unicorns and butterflies until the trade war started. Everything has stopped in the past week,” said John Dundon, an EA and president of Taxpayer Advocacy Services in Englewood, Colorado. 

“Esteemed pillars of the Colorado industry and local communities suddenly contemplate simply not filing or paying income taxes,” Dundon said. “I’ve been talking all week about the definition of ‘willful’ as it pertains to IRC 7203 and the standards I require for my signature on any tax forms.”

BOI and DOGE

What stands out for the 2025 season to Larry Pon, a CPA in Redwood City, California, is the confusion over beneficial ownership information reporting due to the ever-changing court rulings and enforcement changes by the Treasury Department and its Financial Crimes Enforcement Network. “The rules kept changing since November, December, then throughout tax season,” Pon said. “What were the various courts telling us what to do? How about the constant changing guidance from FinCEN? I guess as of today, domestic business entities are not required to file the BOI, but foreign entities still need to file. What about the entities that did file already? Can they delete that very private information since they are no longer required to file? 

“As tax professionals,” Pon added, “we were deluged with advertising from companies who offered to help with this and many were dubious, especially the software companies, when the filing on the FinCEN website was free.”  

“The big unexpected change this year is DOGE,” Pon said, adding that he knew of probationary IRS employees in training who were fired in the middle of class. “Fortunately, none of my personal interactions with the IRS was affected, except it seems to be taking a long time for the IRS to respond to any correspondence. Some colleagues were in the middle of an IRS audit and their IRS revenue agent just disappeared.”   

“There is certainly confusion with those working in the gig economy. It’s been frustrating trying to get them to do better record keeping,” Pon said. 

Health issues also affected tax season for some tax professionals. “Things were going very smoothly until I tested positive for COVID on March 28,” said Morris Armstrong, an enrolled agent and registered investment advisor at Armstrong Financial Strategies in Cheshire, Connecticut. “I was pleasantly surprised by [a] client’s warm wishes and letting me know that extensions were OK. Moments like this show the strength of the relationship.” 

Both he and Pon have noticed more inadequate withholdings than in past seasons.

“I don’t expect delays in filing or in refunds being issued,” Armstrong said. “That’s proven correct year to date. On the resolution side, I expect more delays, and clients will have to be patient as the IRS works through their issues.”

Top 25 firm EisnerAmper announced a strategic investment in RPM Partners, a newly formed joint venture focused on financial and operational turnarounds in the automotive sector. RPM Partners delivers hands-on turnaround solutions that align operational excellence with financial performance. … Tax technology solutions provider Vertex now offers Vertex for Coupa in the Coupa App Marketplace, connecting businesses with certified, pre-built solutions. Coupa certified the Vertex for Coupa integration for use within the Coupa Total Spend Management platform. Key features of this integration include real-time tax calculation, flexible field mapping, VAT reverse charge support, vendor tax validation and tax code synchronization. … Embedded finance solutions provider Pipe announced its strategic acquisition of Glean.ai, an AI-powered spend management company, bringing together embedded capital and spend management for small businesses. Pipe is working with the Glean.ai team to integrate it within Pipe’s internal processes and improve its spend management solution. Glean.ai will continue to be available to existing and new customers directly from Glean.ai. … Business analytics solutions provider Savant Labs announced a strategic partnership with Wolters Kluwer to offer enterprises and tax departments Savant’s Gen AI analytics automation platform on Wolters Kluwer’s CCH Integrator solutions. Wolters Kluwer’s CCH Integrator is a cloud-based tax compliance and reporting platform that’s now combining with Savant’s Gen AI analytics automation platform.

Several years ago, MIT Sloan Management Review and Deloitte published a survey on the future of the workforce, finding that most managers consider external workers — including contractors, service providers, app developers and gig workers — to be part of their workforce. 

This still holds true today as organizations rely on external stakeholders to keep their businesses moving. Yet, for the accounting departments of these organizations, managing the expenses of external contributors has long been a pain point that often adds more time and frustration to an already busy accounting team. The potential for unauthorized or inappropriate expenditure, as well as a lack of oversight and regulations, not only hampers operational agility, it also raises red flags for accounting teams tasked with ensuring accuracy, compliance and control.

This is one of the reasons virtual cards, a transformative payment solution that combines enhanced controls with scenario-based purchasing capabilities, have come on the scene as a viable solution for managing purchases made outside the organization. For accountants, who are often on the front lines of ensuring financial accuracy and spend visibility, virtual cards offer tangible benefits. Given their ability to provide precision, security and adaptability, virtual cards are redefining how businesses collaborate with their external ecosystems while giving accounting teams the oversight they need to manage risk and streamline reconciliation.

Accountable by design

A virtual card is a digital payment method purchasers can use for online and in-store transactions at merchants accepting contactless payments. What makes virtual cards especially suitable for external purchasers is their blend of enhanced controls and scenario-based purchasing capabilities. These features make them highly valuable for organizations seeking to extend controlled purchasing power beyond their internal teams, eliminating risks with the ability to embed oversight into every purchase.

Consider a freelance photographer hired for an upcoming event. The organization issues the freelancer a virtual card with a $2,000 limit, valid until one week after the event, restricted to specific merchant categories related to the purchasing scenario for this use case. Upon reaching its expiration date, the card deactivates, preventing further use. This precision ensures both external purchasers and accounting know exactly what the photographer is authorized to spend, without the hassle of reimbursement delays or vague guidelines. 

Enhanced security is another benefit. If a card is compromised, the impact is minimal — no widespread breaches or drained funds. For a job candidate traveling for an interview, this means booking flights with a secure card, while the business retains control without exposing sensitive financial data.

The value of scenario-based purchasing

Another area where virtual cards shine is in their ability to adapt to scenario-based purchasing, a clear, predefined purpose driving the need for a payment tool. This flexibility is especially valuable for giving accounting teams greater clarity and control over decentralized spend. 

Consider a construction firm managing a project with several subcontractors that all need funds for specific tasks: one for materials, another for equipment rental and a third for permits and licenses. Issuing a single virtual card per scenario ensures each purchaser has exactly what they need — no more, no less. The materials subcontractor gets a card capped at $10,000, valid only at a certain building supply wholesaler; the equipment renter gets a one-time-use card with a $3,000 limit; the permits subcontractor receives a card for $1,500, restricted to government or licensing agencies. For accounting purposes, this approach eliminates the guesswork, streamlines reconciliation and provides clear audit trails aligned to project-specific spend.

Recurring payments are another scenario where virtual cards excel. A marketing agency outsourcing content creation to freelancers can issue virtual cards with monthly limits — say, $500 per writer — automatically refreshing each cycle. The writers use these cards to purchase tools or subscriptions, and the agency tracks every transaction in real time via integrated software. This setup reduces administrative overhead while empowering external contributors with immediate access to funds.

How external purchasers benefit

For external suppliers, virtual cards offer practical benefits that traditional payment methods can’t match, such as by eliminating the friction of reimbursement cycles. External stakeholders no longer need to cover costs and wait weeks for a check. This improves cash flow, a critical factor for small businesses or independent contractors working freelance for an organization. 

Additionally, virtual cards simplify compliance. External purchasers are often given strict guidelines from the organizations they serve: specific budgets, approved vendors or merchant categories. With controls baked into the card, compliance becomes automatic. Now, a consultant buying travel accommodations doesn’t need to second guess whether a hotel is “in policy.” The card only works where it’s allowed.

The business case: efficiency and trust

For accounting departments, the appeal of virtual cards lies in their dual impact: accuracy and efficiency when it comes to reconciliation, compliance and having a true handle on costs. Real-time tracking and reporting mean an accounting supervisor can monitor spend as it happens, reducing the need for post-purchase audits. Integration with accounting software — like QuickBooks or SAP — further streamlines reconciliation, cutting administrative costs.

Virtual cards also build trust. By offering a secure, controlled and flexible payment method, businesses show reliability and respect. A job candidate who can book travel without personal expense feels valued. A freelancer with a dedicated virtual card for project needs feels empowered. This trust fosters loyalty and better partnerships over time.

The future of external purchasing

As businesses increasingly rely on external support for a variety of business tasks, the demand for convenient payment solutions that keep security at the forefront continues to grow. Virtual cards, with their enhanced controls and scenario-based versatility, are uniquely positioned to meet this need. For accounting teams, it’s an option that offers significant advantages: reconciliation is simplified by providing detailed, real-time transaction data; security is enhanced through single-use or limited-use parameters; fraud risk is reduced and compliance is improved by allowing precise control over spending limits and merchant categories. 

There ‘s a reason virtual cards are becoming a clear choice for managing external ecosystems — they help accountants maintain tighter control over spending by bridging the gap between internal oversight and external purchasing.