Managing tax practices in response to new legislation

Editor: April Walker, CPA, CGMA

Change is the tax profession’s only constant and our ultimate competitive advantage. Every time Congress rewrites the rules, clients need clarity, calm, and a concrete plan. Firms that quickly deliver all three can deepen relationships with their clients as a trusted adviser. This column lays out a strategic and practical playbook for leaders, operations professionals, managers, and front–line practitioners to follow when new legislation drops, using H.R. 1, P.L. 119–21, commonly known as the One Big Beautiful Bill Act, as the current backdrop. Using the guidelines below will allow firms to manage their tax practice effectively during times of change.

Why responsiveness is now a core practice competency

Compliance risk is the obvious driver for getting up to speed quickly on legislative changes. New rates, thresholds, credits, forms, elections, and timing rules can make yesterday’s “routine” wrong. But there are three practice–level reasons to build a repeatable response capability:

• Client trust and retention: When the headline hits, clients want to hear from you first. Timely, tailored guidance beats generic news summaries every time.
• Strategic value creation: A new law equals new planning windows. Rate changes, deduction caps, expensing rules, and income phaseouts open and close opportunities fast. Early movers capture them.
• Operational resilience: Firms with a standing change playbook avoid scrambling. Organizers, checklists, software, training, and outreach get updated on a cadence — not in chaos.

The bottom line: Legislation is not a seasonal disruption; it’s an ongoing change–management discipline for modern tax practices.

H.R. 1 at a glance (for practice leaders)

Firms need to identify the planning opportunities in new legislation. Using H.R. 1 as an example, some of the provisions that affect tax planning and clients are:

• The act extends or “locks in” many individual and business provisions that were set to sunset, while layering in targeted deductions (e.g., certain worker income categories and a limited-duration, senior-focused benefit).
• It adjusts the state and local tax (SALT) landscape for a period, creating a multiyear planning arc, and then reverts later, which affects bunching strategies and passthrough entity tax (PTET) modeling.
• It stabilizes business incentives (e.g., accelerated expensing) and preserves Sec. 199A for passthroughs, while tightening certain reporting and international regimes.
• It compresses timelines for selected energy incentives, creating “last-call” opportunities and documentation demands.

H.R. 1 affects almost every client segment, including wage earners, retirees, business owners, high–net–worth individuals, estates, multistate filers, and cross–border households, which requires segmented outreach, procedural changes, and targeted planning.

So, how do firms put this into action? That’s where the playbook comes in.

A six-step framework to operationalize new legislation

Follow these steps anytime a federal tax bill passes (or is likely to):

• 72-hour impact scan (“first triage, then perfect”):
  • Create a one-page internal brief describing: (1) what changed, (2) which clients are affected, and (3) what is time-sensitive. Assign a lead person for each major area (e.g., individuals, business, SALT, international, and estates).
• Team alignment and just-in-time training:
  • Hold a 60-90-minute all-hands meeting with role-specific breakouts. Focus on “what to do differently” (not just “what changed”). Provide a quick reference guide for the tax team (with rates, thresholds, and phaseouts; new elections; what to collect; and where returns change). Consider having all tax staff sit in on educational webinars on the new legislation, so they can be informed.
• Workflow and organizer updates (“bake it in”):
  • If the firm prepares its own organizers and checklists, make sure to update them, including with lists of items to be provided by clients. Add prompts for new deductions and credits (e.g., worker income categories, business asset additions, SALT paid, and energy purchases before cutoffs).
  • Otherwise, check for updated organizers and checklists from the AICPA Tax Section resources or your software provider and ensure they include all the necessary changes.
  • Validate software updates in a test client; run before-and-after pro formas to see changes.
  • Add review tick marks, such as “H.R. 1 checks” for returns likely to be affected.
  • Create a knowledge-based frequently asked questions document with plain-English answers your team can reuse.
• Segmented client communications (“right message, right people”):
  • Send targeted emails/webinars by client type with three elements: (1) what changed for them, (2) what to do now, and (3) how your firm can help. Encourage assistants to book planning meetings when clients call, or include a booking link for a 20-minute planning consultation. Avoid jargon; emphasize actions.
• Planning and advisory activation (“beyond compliance”):
  • For your top clients, produce a planning brief with multiyear considerations that address the timing of deductions and income, entity implications, and state conformity issues.
• Monitor, refine, and repeat (“practice makes perfect”):
  • Track IRS guidance, state conformity, and technical corrections. Update the above framework quarterly. Maintain a living-issues log with answers and examples for staff.

Sample client segmentation plans (with actions and talking points)

Again, using H.R. 1 as an example, use the following as a menu, but tailor it to your firm. The goal is to prioritize outreach and standardize next steps by client segment.

Wage earners and families

• Who: Clients with Forms W-2, Wage and Tax Statement; those with dependent credits; renters or homeowners in moderate- to high-tax states; service workers.
• H.R. 1 angles: Permanent rate structure; higher standard deduction; targeted deductions for select worker income categories (with documentation); SALT cap dynamics for itemizers; modest family credit adjustments; and a temporary senior deduction for those age 65 and over.
• Actions:
  • Update guidance on Form W-4, Employee’s Withholding Certificate, for those whose net tax may shift.
  • Add organizer prompts for worker income categories affected (and employer statements, if needed).
  • For high-tax states, model itemization vs. standard deduction and SALT impact.
  • For seniors, confirm eligibility window and any income-based reductions.
• Talking points:
  • “We’ll review your paycheck and estimates to reflect the current rates.”
  • “Documentation now matters; here’s a simple way to track it.”
  • “Given SALT changes, we’ll reassess itemizing and bunching strategies this year.”

Small business owners and passthroughs (S corporations, partnerships, and sole proprietors)

• Who: Owners with Sec. 199A exposure, capital expenditure plans, or tight cash flow; PTET users; and multistate filers.
• H.R. 1 angles: Sec. 199A permanence and updated phase-in ranges, accelerated expensing (bonus depreciation/Sec. 179), and refreshed information-reporting thresholds; SALT/PTET planning remains pivotal.
• Actions:
  • Run capital expenditure timing scenarios (bonus depreciation vs. Sec. 179, placed-in-service cutoffs, and listed-property rules).
  • Refresh Sec. 199A computations (Form W-2/property limits, specified service trade or business exposure, and phase-in strategies).
  • Revisit entity choice with durability of Sec. 199A and expensing rules in mind.
  • Confirm Form 1099 workflows: Thresholds for vendor Forms W-9, Request for Taxpayer Identification Number and Certification; reconciliations; and client education.
• Talking points:
  • “If you plan equipment purchases, we’ll model immediate expensing to optimize cash flow.”
  • “We’ll confirm you still maximize Sec. 199A and adjust comp., W-2 wages, or investment as needed.”
  • “Let’s keep PTET on the table for SALT optimization where available.”

High net worth and estates/trusts

• Who: Clients with taxable estates, gifting programs, trusts, concentrated investment income, private business interests; residents of high-tax states.
• H.R. 1 angles: Higher estate/gift exemption environment, shifting lifetime gifting strategy; SALT cap changes; alternative minimum tax (AMT) thresholds/phaseout dynamics; charitable planning adjustments; energy credit sunsets affecting lifestyle purchases.
• Actions:
  • Collaborative review with estate counsel: gift timing, spousal lifetime access trusts, irrevocable life insurance trust funding, valuations.
  • SALT strategy refresh: property tax timing, PTET coordination, AMT lens.
  • Charitable planning: donor-advised funds, qualified appraisals, carryforward tracking.
  • Build a three-year projection to map planning windows and evaluate risk.
• Talking points:
  • “Your exemption environment shifted; let’s confirm whether additional lifetime gifts make sense.”
  • “We’ll reoptimize SALT and charitable strategies under the new caps and floors.”
  • “We’ll monitor AMT interactions and phaseouts that change the effective value of deductions.”

Cross-border households and international businesses

• Who: U.S. persons with foreign income/assets, nonresident investors, U.S. businesses with controlled foreign corporations, executives with mobility considerations, and frequent remitters abroad.
• H.R. 1 angles: Adjustments to international deduction regimes and anti-base-erosion rules, potential excise tax frictions on certain transfers, and documentation and reporting changes.
• Actions:
  • Update models for global intangible low-taxed income (now net controlled foreign corporation tested income under H.R. 1), foreign-derived intangible income, and base-erosion and anti-abuse tax; reassess foreign tax credit (FTC) posture and expense allocations.
  • Review entity/holding structures and intercompany pricing if effective rates shift.
  • For individuals, confirm identification/documentation and reporting standards for new or revised benefits; address remittance planning if relevant.
• Talking points:
  • “We’ll run a new international projection to quantify effective-rate impact and optimize FTC usage.”
  • “If you regularly remit funds abroad, there may be a new cost; let’s incorporate that into timing and method.”
  • “We’ll coordinate with counsel on structural tweaks where tax friction increases.”

Multistate and SALT-sensitive filers

• Who: Individuals in high-tax states, owners using PTET, businesses filing in multiple jurisdictions, and remote-work employers.
• H.R. 1 angles: Federal SALT dynamics feed into state conformity (or not); PTET interplay; apportionment/revenue-sourcing strategies unchanged but newly revaluable under federal adjustments.
• Actions:
  • Build a state conformity matrix for your top eight to 10 states and update quarterly.
  • Make a preseason PTET election calendar with thresholds, deadlines, and payment logistics.
  • For remote workforces, refresh nexus and withholding procedures as needed.
• Talking points:
  • “We’ll pair federal SALT changes with state conformity to maximize your net result.”
  • “We’ll calendar PTET decisions early to avoid cash flow surprises.”

High-level technology enablement (‘keep it simple, make it stick’)

Utilize your current technology for data capture, workflow prompts, and outreach.

• Avoid duplicative data:
  • Pick one system as the master for client attributes (e.g., customer relationship management or practice management). Store H.R. 1—relevant attributes there (e.g., senior 65+, SALT > $10k, passthrough owners, and international filings).
• Smart tags and saved views:
  • Create tags by segment (e.g., H1_SALT, H1_Senior, H1_Worker, H1_QBI, and H1_Intl). Build saved lists for targeted mailings and staff queues. Aim for five to eight tags, as more could cause confusion, and fewer could miss nuances.
• Incorporate into client organizer and checklist:
  • Utilizing some of the H.R. 1 questions on client organizers, mirror them as required fields in intake tasks. Add reviewer prompts: “Confirm H.R. 1 items considered” with dropdown reasons (e.g., applied, not applicable, or missing docs).
• Maintain a dashboard:
  • Track: Percentage of organizers returned with H.R. 1 fields completed, number of clients by tag, number of advisory meetings booked/completed, estimated-tax changes identified, and projection deltas for a sample set.
• Automations — lightweight but real:
  • Depending on the tech savviness of your firm, consider setting up automations when items are checked on client checklists and organizers (e.g., when “H1_Worker” is checked, the system will automatically send clients a tracking template and documentation guide).

Risk management, engagement scope, and pricing

New laws don’t just change returns; they change risk, scope, and client expectations.

• Engagement letters and scope creep:
  • Add a standing clause that legislative changes may require additional work (research, projections, and amended organizers) and will be billed at standard advisory rates unless otherwise agreed.
  • Clarify whether responses to IRS/state notices tied to a new law are in-scope or billed separately.
  • For PTET and elections, specify who decides and clarify payment responsibilities.
• Quality control:
  • Consider creating a targeted second-review queue for returns most affected by new legislation.
• Pricing and value:
  • Offer fixed-fee planning bundles for common scenarios (e.g., “Business H.R. 1 capital expenditures & QBI Analysis”).
  • Track realized benefits (cash flow and tax savings). Use wins (anonymized) in proposals.

Staffing, training, and capacity

• Skill mapping:
  • Map your team to H.R. 1 “lanes” (e.g., individuals, business, SALT, international, estates).
  • Identify gaps; assign a “lane lead” to mentor.
• Microlearning:
  • Five 10-minute videos beat a single three-hour webinar. Release them weekly with a one-question quiz and a simple case file.
• Capacity guardrails:
  • During the first season under the new law, carefully consider add-on projects. Protect the calendar for advisory with top clients and affected returns.

State conformity (don’t skip this)

Federal change is only part of the story. Build a state conformity matrix for your top jurisdictions:

• Which parts of H.R. 1 do they conform to (static vs. rolling)?
• Do they decouple from accelerated expensing provisions?
• Are there any SALT-related offsets (add-backs, PTET nuances)?
• Effective dates and transitional rules.
• Assign owners for each major state and update quarterly. Share a one-page summary with staff.

Adapt the playbook and technology guidelines to your size firm

Midsize to large firms typically have the staff capacity and resources to follow the above playbook and to tailor their technology to assist them with tax legislation changes. In smaller firms, many practitioners wear a lot of hats where they not only are responsible for the operational duties of the tax practice but also are client advisers. Additionally, limits on packaged tax and practice management software may not allow you to track client data and automate items as easily. The playbook has to make sense for your size firm and should be tailored to what is practical. The key is to make sure you are being proactive with your key clients and utilizing the technology and resources to get ahead of the curve with changes to your procedures and workflow. This will help avoid pushing these items into an already compressed tax season.

Bringing it together

In moments like these, clients don’t need a statute citation; they need a navigator and someone who can translate change into action. Treat H.R. 1 as both a proving ground and a template; build a playbook. Measure it. Improve it.

Do that, and instead of just “keeping up” with new legislation, your firm will be using it to lead, strengthen relationships, and create real, measurable value for clients year after year.

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Contributors

Mark Gallegos, CPA, MST, is a partner with Porte Brown Accountants & Advisers in Elgin, Ill., and Teela McCullar, CPA, is a managing director with Barnard Vogler & Co. CPAs in Reno, Nev. April Walker, CPA, CGMA, is lead manager—Tax Practice & Ethics, Public Accounting, for AICPA & CIMA. Gallegos is a member, McCullar is vice chair, and Walker is staff liaison of the AICPA Tax Practice Management Committee. For more information about this column, contact thetaxadviser@aicpa.org.