Prep your practice now for the 2027 filing season

The most frustrating filing-season problems are often the ones you could have caught before the first client file arrived. An inactive credential, an outdated security process, a filing-system change, or a broken handoff between preparation and e-file acceptance can become a much bigger problem once deadlines start stacking up.

As you know, preparing for the 2027 filing season means more than just installing tax software updates. Now is the time to test the parts of your practice that have to work under pressure and get current on the tax issues your clients will bring through the door.

Get ahead of filing-system changes

One change deserves attention well before January: the IRS is retiring the Filing Information Returns Electronically (FIRE) system. Beginning with tax year 2026 information returns filed during the 2027 filing season, the Information Returns Intake System (IRIS) will be the only IRS intake system for information returns currently filed through FIRE. Firms that file these returns directly should make sure they have the appropriate IRIS Transmitter Control Code (TCC) and understand how their filing process will change. Forms W-2, Wage and Tax Statement, will continue to be filed with the Social Security Administration.

Preseason is also the time to verify that preparer credentials and filing access are current. Review PTINs and the firm’s EFIN information. Confirm that each user still has the appropriate access to IRS systems. Former employees should no longer have access, and remaining users should have only the permissions they need.

Then, look at the client side of your processes. Update engagement letters and organizers for current-year changes. Set the firm’s standard for a complete submission and establish document deadlines. Decide how incomplete engagements will be handled.

Decisions like these are much easier to make now than when a client uploads half a return on April 10.

Test security and workflows before they are tested for you

Cybersecurity belongs squarely in filing-season preparation.

Federal law requires tax professionals to maintain a Written Information Security Plan (WISP), and the IRS recommends regularly reviewing and updating it as the firm changes. For 2027 prep, the review may include remote access, service providers, multi-factor authentication (MFA) and whether backups actually restore usable files. If your firm uses AI tools, decide which tools are approved and what taxpayer information, if any, may be entered. Set a human-review requirement for AI-assisted work.

Return controls deserve the same attention. Review how the firm obtains and retains Form 8879, IRS e-file Signature Authorization, or another applicable e-file authorization. Assign responsibility for monitoring acknowledgments and resolving rejected returns.

Most importantly, do not treat transmission as your finish line. Keep the client's file open until you've verified all applicable federal and state acceptances.

Run a dress rehearsal before clients arrive

Pick one sample client file and push it through the entire process before opening your season.

Start with intake and secure document delivery. Move it through preparation and review. Test the e-signature process, transmission setup, acknowledgment monitoring and final delivery without submitting a fictitious return.

Along the way, note every point where someone has to stop and ask, “Who handles this?” or “What happens next?”

Those are the problems worth fixing right now.

Do the same with your technical preparation. Identify which 2026 law changes require updates to the firm’s preparation materials. Then make sure the team understands which positions require additional judgment or documentation.

NATP's Virtual Tax Season Updates are built for this part of preseason preparation. The three-day workshop focuses on 2026 tax law changes and real-world application, including OBBBA provisions, itemized deduction issues, and planning situations involving gifting, retirement and estate administration. Registration also includes a January on-demand webinar covering last-minute guidance released before filing season.