Tax Season Tips: Leveraging SMS to Capitalize This Season

Tax season often feels like a race against time, with deadlines to meet, forms to collect, and financial decisions to make. Many individuals and businesses find it overwhelming, but staying organized can make the process much easier.

One of the most effective ways to stay on top of everything is by using SMS for clear and quick communication. Text messaging has grown beyond casual communication and is now a powerful tool for simplifying complex processes, including tax preparation.

In this article, we’ll share some tax season tips to make the preparation easier, more manageable, and less stressful for your clients.

How SMS Can Simplify Tax Season Prep

Tax season preparation doesn’t have to feel overwhelming. As a tax professional, incorporating SMS into client communication transforms how preparation is managed.

SMS messaging is fast, direct, and accessible, which makes it an ideal tool for simplifying even the most complex tax situations. Here are a few reasons how:

Automatic Reminders for Important Deadlines

Missing a deadline can lead to penalties, interest charges, or delays in processing your tax return. Tax-related reminders can be scheduled weeks or even months in advance.

With a texting platform like Textellent, automated reminders can be tailored to clients’ needs so no one misses important filing dates. Unlike generic reminders, Textellent integrates with your tax software to personalize messages based on each client’s previous filing habits.

Easy Access to Tax Preparation Checklists

Preparing for the tax season involves gathering numerous forms and documents. SMS can provide step-by-step checklists tailored to your tax needs.

SMS platforms like Textellent make it simple to send clients a clear and concise list of required documents. Automated messages reduce confusion and eliminate the back-and-forth communication often required to clarify missing items.

Clients appreciate the simplicity and speed of receiving checklists via SMS. Instead of waiting for a call, they can reference a text message while gathering their documents.

Textellent also allows clients to respond directly with questions or send MMS messages of documents, which adds another layer of convenience.

Real-Time Updates From Tax Professionals

Communication with your clients is essential, especially if there are questions or missing documents. SMS allows you to send quick updates or requests without needing a lengthy tax season email or phone call.

During tax season, you can’t always respond to every client’s inquiry immediately. Textellent’s after-hours responder guarantees that clients still feel acknowledged. 

When a client sends a message after business hours, they receive an automated reply letting them know when to expect a response.

Tracking Refunds or Payments

Clients often want to know when they can expect their refund to arrive. With SMS, you can provide immediate updates triggered by milestones in the tax filing process. Then, send automatic notifications once a return is filed, processed, or approved.

SMS is an effective way to remind clients who owe taxes about payment deadlines. Missing these deadlines can result in penalties and interest charges, so timely reminders are critical.

Notifications About Tax Law Changes

Tax laws change frequently, often with adjustments to deductions, credits, or filing requirements that can directly impact your clients. With SMS, you can notify them about tax law updates.

Textellent integrates with your tax software, which allows you to send tailored notifications based on each client’s unique tax situation.

Clients who frequently claim education credits can receive messages about changes to the American Opportunity Credit or Lifetime Learning Credit. Similarly, business clients can be notified about updates to Section 179 deductions or payroll tax requirements.

Seamless Collaboration for Businesses

Managing payroll records, expense reports, and other financial documents can quickly become chaotic without an efficient system in place.

Textellent allows for real-time, two-way communication where clients can ask questions and receive quick answers. It eliminates the need for lengthy email threads or waiting for responses during busy office hours.

Convenience and Accessibility

Nearly everyone has a mobile phone, which makes SMS a universally accessible tool. Text messages are quick to send, read, and respond to make sure important updates reach clients immediately.

Younger clients, who often prefer texting over traditional communication methods, appreciate the convenience of SMS. Meanwhile, older clients benefit from the simplicity of receiving clear, concise updates without navigating complex email systems.

Textellent’s feature “Text Us Now” button can be added to your website to make it easy for clients to reach out with questions or appointment requests.

5 Tax Season Tips for a Stress-Free Preparation

Tax season is often a hectic time, both for tax professionals and clients. SMS can simplify how you communicate, organize, and speed up your processes.

Tip #1: Create a Tax Season Checklist

Your tax preparation checklist should cover all the documents and information necessary for accurate tax preparation. You must tailor it to the needs of individual and business clients. Here’s a sample breakdown:

• For individual filers:
  • W-2 forms from all employers
  • 1099 forms for freelance or contract work
  • Proof of tax-deductible expenses (e.g., medical bills, charitable contributions)
  • Form 1098 for mortgage interest deductions
  • Student loan interest statements
  • Last year’s tax return for reference
• For business clients:
  • Profit and loss statements
  • Payroll records
  • Receipts for business expenses
  • Form 1099-NEC for contractor payments
  • Depreciation schedules for equipment
  • Quarterly estimated tax payment records

Using SMS to send tax season checklists allows clients to receive the information timely. A business texting solution allows you to automate and personalize these messages based on client profiles or filing history.

For more tips and a ready-to-use checklist, download your free 2025 Tax Season Checklist. Discover how to delight your clients and achieve better results this tax season!

Tip #2: Set Up SMS Reminders

Many clients struggle to keep track of multiple tax deadlines, such as filing dates, estimated payments, and document submission timelines. SMS reminders are ideal for these situations because they deliver concise, actionable information directly to their phone.

To get the most out of SMS reminders, start by tailoring messages to each client’s unique situation. Textellent’s integration with tax software makes this easier, where you can schedule messages based on filing habits or specific deadlines.

Self-employed clients may receive messages about upcoming estimated payment deadlines. Individual filers could get reminders to submit documents or contributions to a traditional IRA (Individual Retirement Account) before the tax year ends.

Automated reminders, when properly set up, reduce stress, minimize errors, and create a seamless experience for everyone involved.

Tip #3: Monitor Deadlines and Refund Status

You can use SMS to send personalized reminders about approaching deadlines. These messages can include specific actions required, such as submitting documents or making payments.

For self-employed individuals, quarterly estimated tax payments are another critical deadline that can be easily managed with automated SMS reminders.

Once federal tax returns are filed, the waiting period for a refund can cause uncertainty. Real-time SMS updates are sent about refund milestones, including when the IRS accepts a return or when a refund is issued.

Also, guiding clients to set up an IRS online account can help them track their refund status independently, which can complement your SMS updates.

Tip #4: Use Secure SMS Platforms

When handling sensitive financial data, security is non-negotiable. Cybersecurity threats such as unauthorized access, phishing, and data breaches are real concerns when dealing with personal financial information.

Using a secure SMS platform protects your client data while maintaining the convenience of text-based communication.

Encryption ensures that all messages and attachments are scrambled during transmission. Platforms like Textellent comply with the Telephone Consumer Protection Act (TCPA) and adhere to the legal and ethical use of SMS communication.

Also, clients can be required to opt-in for SMS communication, which safeguards their privacy and meets regulatory requirements. If clients send sensitive data, confirm their identity through a separate verification step before proceeding with any actions.

Example Use Case: A client could securely send details about tax-free municipal bonds or deductions through an encrypted SMS platform to keep information confidential.

Tip #5: Customize SMS for Client’s Needs

Generic messages may be ignored, but a message that addresses a client’s needs or filing situation grabs attention and prompts action.

You must categorize your clients into groups, such as small business owners, self-employed individuals, or families, and create messages tailored to their needs. For example:

• A business owner could receive reminders about deducting qualifying equipment purchases
• A retiree might benefit from tips on maximizing a traditional IRA contribution
• Families could receive updates on claiming child-related credits or volunteer income tax assistance programs for additional support

You can also show appreciation with personalized holiday or thank-you messages. These messages strengthen relationships and keep your services top of mind.

Why Early and Organized Tax Prep Matters

Tax preparation is a task many tend to put off, but starting early and staying organized can make a huge difference. Here’s why getting an early start and keeping tax-related documents in order is essential for individuals and businesses.

Avoid Late Filing Penalties

The Failure to File penalty is one of the most severe consequences of late filing. The IRS charges 5% of the unpaid tax amount for each month or partial month that the return is late, with the penalty capped at a total of 25%.

If your client owes $2,000 and files four months late, the penalty could be $400. This adds up quickly, especially if they already face financial pressure during tax season.

Another common penalty is the Failure to Pay penalty, which is smaller but still impactful. It accrues at a rate of 0.5% of the unpaid taxes each month. If both penalties apply, the failure-to-file penalty is reduced to 4.5%.

Therefore, it’s even more important to file on time, even if the client can’t pay the full tax bill. Interest on unpaid taxes compounds the tax burden, as the IRS charges interest from the filing deadline until the balance is paid.

Overdue filing also comes with hidden costs. Refunds from a federal income tax return must be claimed within three years, or they are forfeited. Someone eligible for a $3,000 refund who forgets to file within the allowable period could lose that money forever.

Maximize Tax Refunds

Many taxpayers leave money on the table by overlooking deductions, credits, and other opportunities to lower their tax liability.

For the 2024 tax year, the standard deduction is $14,600 for single filers, $21,900 for heads of households, and $29,200 for married couples filing jointly. The standard tax deductions simplify filing but may not yield the highest refund, especially if the deductible expenses exceed these amounts.

Itemizing allows taxpayers to claim specific expenses, such as mortgage interest, state and local taxes (up to $10,000), medical expenses exceeding 7.5% of your adjusted gross income, and charitable contributions.

Tax credits are another powerful tool for boosting refunds, unlike deductions, which reduce taxable income, and credits directly lower tax liability. The Earned Income Tax Credit (EITC) can add thousands of dollars to the client’s refund if they qualify.

Similarly, the Child Tax Credit provides up to $2,000 per qualifying child, while education-related credits like the American Opportunity Credit and the Lifetime Learning Credit can offset tuition costs and other education expenses.

The IRS typically processes early returns more quickly, particularly if they’re filed electronically and include direct deposit information.

Reduce Stress and Errors

Waiting until the last minute often leads to rushed decisions and overlooked details. Clients are encouraged to begin gathering necessary documents. This includes W-2s, 1099s, and receipts for deductions as soon as the tax year ends.

Staying organized is equally important. Clients are advised to use a dedicated filing system, organizing documents into categories to save time during filing.

Reviewing prior-year tax returns can also uncover unused tax deductions, credits, or carryover losses.

Using automated text reminders can further reduce stress. Notifications about upcoming deadlines or missing documents promote timely action and minimize the chances of last-minute rushes.

Handle Complex Tax Situations

Complex tax situations can arise from various circumstances, including owning a business, managing investments, or earning income from multiple sources. These situations often require additional preparation, knowledge, and documentation.

For clients managing investments, additional forms such as 1099-B or 8949 may be required to report capital gains or losses, dividends, and interest income. They also have to handle payroll taxes, depreciation of assets, and deductions for operational costs.

Similarly, investors must report capital gains or losses, dividends, and interest income, which often require additional forms like 1099-B or 8949. Clients with multiple sources, such as freelance work, employment, and rental properties, should also consolidate this information.

Stay Ahead of Changing Tax Laws

The Internal Revenue Service (IRS) publishes annual adjustments to tax brackets, deductions, and credits, which are often influenced by inflation and new legislation.

Small business owners and self-employed individuals face unique challenges when it comes to changing tax laws. Rules for business expense deductions, depreciation, and payroll taxes are subject to frequent updates.

Technology offers several tools to help track tax law changes. Subscribing to IRS newsletters or using professional tax tools that incorporate updates automatically can keep your clients informed.

Improve Financial Planning

If you review your client’s tax return, it provides valuable insights into their financial habits and opportunities for improvement. Identifying underperforming investments or areas where earnings can be diversified can help them make more informed decisions about their financial strategies.

Life events such as getting married, having a child, or buying a home can impact the tax situation. Planning ahead lets your clients become prepared to claim relevant deductions and credits, such as the Child Tax Credit or mortgage interest deduction.

Engage Clients Year-Round With Textellent’s SMS Solutions!

Tax season is one of the busiest times of the year, and staying connected with clients is essential when filing taxes.

Textellent’s SMS solutions provide a practical way to expedite client interactions, send reminders, and keep everyone on track. From rebooking missed appointments to updating clients on their filing progress, it guarantees your services are always accessible and easy to manage.

You can remind clients about your services through automated SMS campaigns, share helpful tax tips, or send a warm holiday message to stay on their radar. Consistent communication strengthens client relationships and encourages repeat business.

Features like self-scheduling tools and real-time updates ensure a smoother experience for both you and your clients, saving time and effort while improving satisfaction.

Provide a stress-free tax filing experience with Textellent’s unique business texting capabilities for tax and accounting professionals. Sign up for a free trial or request a demo consultation today!

FAQs About Tax Season Tips

How should I prepare for tax season?

It starts with organizing your financial documents and understanding your client’s filing obligations. You can use SMS to send timely reminders and checklists to your clients. 

Platforms like Textellent can send personalized messages to help you gather what’s needed, such as W-2s, 1099s, and deduction receipts.

Can I write off tips on taxes?

Tips are considered taxable income, and they must be reported on federal tax returns. For clients working in hospitality or food service, reported tips should already appear on their W-2 forms provided by employers. 

However, cash tips that weren’t reported must still be declared independently.

How can I get a bigger tax return?

Maximizing your refund starts with understanding which deductions and credits apply to your situation. Contributions to retirement accounts, claiming education credits, and properly tracking expenses for work or business can all help increase your refund.

Is it better to claim 1 or 0 on your taxes?

The decision to claim 1 or 0 on the W-4 form depends on financial goals.

Claiming 1 reduces the amount of tax withheld from paychecks, which increases take-home pay but possibly results in a smaller refund.

Claiming zero means more taxes are withheld, potentially leading to a larger refund but less take-home pay throughout the year.

It’s always a good idea to consult with a tax professional to determine which option aligns with current needs and future plans.