The tax preparation trend report for owners in 2027

What to take away

This article covers practice operations, not individual tax positions. Route client-specific questions to a licensed CPA or enrolled agent, and confirm current forms and deadlines with the IRS or the state tax authority.

Trend 1: IRS identity proofing, ID.me and the IP PIN

The IRS has pushed identity proofing to the front of the filing process, and that shift reaches the preparer's desk. Clients who cannot pass an online identity check, or who file a return the IRS flags, end up in a verification step that stalls the refund and the phone line.

Two IRS tools drive the 2027 version. An IRS online account opens through ID.me, so a client who wants their own transcript or account record needs that login first. The Identity Protection PIN is a six-digit number the IRS issues; it is opt-in for any taxpayer and already required for some.

For 2027, plan for the extra touch. Collect the identity documents at intake rather than at signature, and tell clients what happens if the IRS asks for more. The IRS publishes its current verification procedures; your job is to follow the version in force for the filing year, not last year's.

Trend 2: the PTIN line runs through your bookkeeping bench

Firms that added bookkeeping to smooth the off-season now have a staffing question: who needs a preparer tax identification number and who does not. A new PTIN or a renewal costs $19.75.

The IRS FAQ on whether you need a PTIN draws the line. A bookkeeper who only gathers, organizes, and records client information generally does not need one.

A person paid to prepare or substantially assist in preparing a federal return generally does. Each preparer holds an individual PTIN, and PTIN requirements for return preparers treat credentials and representation rights as separate matters.

Renewal opens in mid-October and closes December 31, which drops the paperwork into your busiest stretch. New applications can take several weeks to process, so a February start slips into March.

Read that against your org chart before January. A bookkeeper who starts answering "what should I put here" has crossed into preparation, and the fix is either a PTIN or a clearer scope.

Trend 3: software priced on returns filed

Per-return pricing has become the common model, which turns software choice into a volume bet. A firm filing 400 returns and a firm filing 4,000 feel the same per-return fee very differently.

Vendors split into two camps. Drake Tax sells one annual license with no per-return charge, which suits a high-volume shop full of simple 1040s. Intuit Lacerte, Intuit ProSeries and Thomson Reuters UltraTax CS publish pay-per-return tiers and add an e-file fee per federal and state return.

Compare on five axes, and put your own numbers in:

Ask each vendor for the per-return rate, the e-file fee, the support hours during peak, and the migration cost. Then multiply by your own return count.

Client delivery carries its own line. TaxDome charges per user, and SafeSend Returns is typically billed per return sent.

Trend 4: seasonal staffing is the whole margin

Tax preparation is a four-month business carrying twelve months of overhead. The 2027 version of that problem is tighter: experienced preparers are scarce in season, and training a new one costs weeks you do not have in February.

Build the curve first. Count returns by week for your last two seasons, convert that to preparer hours, and hire against the peak rather than the average. The SBA business guide covers hiring and growth planning in general terms; the seasonality math is yours.

Two gates slow a January start. A new preparer needs a PTIN before touching a federal return, and the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications is public. A client can check there whether your enrolled agents and CPAs are listed.

Trend 5: clients find preparers through search and reviews

Referral still drives most new tax clients, but the referral now ends in a search. A client who hears your name looks you up, reads reviews, and checks whether you appear for "tax preparer near me."

That makes local search and review response part of the 2027 plan. Claim the listing, answer reviews, and keep the hours current. A practice with no visible footprint loses the referral it already earned.

Clients also shop with the IRS in hand. The agency's Choosing a Tax Professional page tells them to check credentials and a PTIN, so a profile naming your enrolled agents, CPAs and Annual Filing Season Program staff answers the first question before they call.

Worked example: sizing the season

A firm files 400 returns. It pays a per-return software fee, call it R, plus an e-file fee E per federal return. Software cost is 400 × (R + E).

Two preparers at H hours each during a 14-week season cover 2 × H preparer hours. If the firm's average return takes T hours, capacity is (2 × H) ÷ T returns. When that number falls below 400, the firm either adds a preparer or turns work away.

Say your rate is $40 and your e-file fee is $5. Then 400 × (40 + 5) is $18,000 for the season, and each added return costs a marginal R + E. Substitute your own R, E, H, and T. The arithmetic is the same; only your figures change it.

Common questions

Do my bookkeeping staff need a PTIN for 2027?

It depends on what they do, not on their title. A bookkeeper who only gathers and records information generally does not need one. Anyone paid to prepare or substantially assist with a federal return generally does, and each preparer holds an individual PTIN. Check the IRS FAQ against each person's actual duties, and renew by December 31.

Is per-return software pricing worse than a flat license?

Not automatically. Per-return pricing rewards small firms and penalizes large ones, so the answer depends on your volume.

Drake Tax's flat license fits a 400-return shop of simple returns. A mixed 4,000-return firm can land lower under Lacerte, ProSeries or UltraTax CS tiers. Get the per-return rate, the e-file fee, and the peak-season support terms, then multiply by your own return count.

How far ahead should I hire for the 2027 season?

Work backward from your peak week, not from January. Count returns by week for the past two seasons, convert to preparer hours, and start recruiting early enough to train before the rush. Add PTIN processing time, which can run several weeks. Confirm any licensing or credential requirements with the IRS or your state board.

Where do I verify 2027 deadlines and forms?

With the IRS and your state tax authority, every time. Deadlines shift for disaster relief, state e-filing mandates differ, and forms change by tax year. Form 1099-DA, the digital asset broker form, now covers tax year 2026. Publish nothing to clients that you have not checked against the current authority guidance.