In: Accounting
you will cover the options you have to communicate tax updates to clients.
With the ever-changing tax rules that come into effect every year, what options would you use to notify your client of the changes to the tax code that may affect them? Give several specific examples of different circumstances that warrant a communication and the services that you would subscribe to for each example. Give an example of a tax change that occurred this year that you would not notify your clients about.
In the ever changing world and the dynamic environment, where tax rules, tax schemes and tax strategies keep changing due to the amendments made in tax laws, it is of utmost importance for businesses to update their clients about these changes through tax confereences, webinars, white papers, e-books and the like. It s obvious that the clients would want to know how the tax updates, startegies, schemes and credits can affect them, their business and their life.
Thus, firms and entities can notify their clients in the following ways:
1. Tax Newsletters that provide a brief description of the changes made in laws and its impact on Income can be sent to all the clients listed on their database. A newsletter subscription service is required for this.
2. A revolving door of tax notifications on the website can be maintained and links to get to that webpage may be circulated to them through various means. Webpage hosting services is required for this and website maintenance charges are incurred for the same.
3. Direct mails can be sent to all clients through the direct mail blanket approach, can make them aware of the changes in laws.
4. A Twitter feed or LinkedIn post that contains all details in a concise, summarised manner, or providing the highlights of the most significant changes can persuade people to scroll down familiarise themselves with the tax updates. This helps circulate important information through social media.
5. Conducting presentations and inviting clients to educate them about those changes that might have a great impact on them.
An example of a tax change that occured and would not be notified to clients can be changes in estate tax and inheritance tax laws.