Tax Season 2021 IT Prep: Lessons from 2020's Chaos

Tax season 2020 was unprecedented. COVID-19 hit in mid-March, right as accounting firms were entering their busiest period. Offices closed overnight. Staff scrambled to work from home. The tax deadline got extended to July. Everything was chaos.

Tax season 2021 is starting now, and we're still in pandemic mode. But this time we have the advantage of experience. We know remote work is happening. We know the security challenges. We have time to prepare properly instead of improvising in crisis mode.

Here's what accounting firms need to do right now to make tax season 2021 smoother and more secure than 2020.

Remote Access That Actually Works

Last year, firms set up remote access hastily and dealt with problems as they arose. This year, get it right before tax season hits.

VPN Capacity

Check that your VPN can handle all your staff connecting simultaneously. Last year, some firms discovered their VPN licenses only supported 10 concurrent connections when they had 15 people trying to work remotely.

Load test your VPN now. Have everyone connect at once and verify performance is acceptable.

Multi-Factor Authentication

If you don't have MFA on your remote access, implement it now. The combination of tax season and remote work makes accounting firms prime targets for attackers.

Yes, MFA is slightly less convenient. It's also the difference between a secure tax season and a ransomware nightmare.

Bandwidth Requirements

Remote desktop and tax software over VPN require decent internet speeds. Make sure your staff have adequate home internet:

• Minimum 25 Mbps download, 10 Mbps upload
• 50/20 or better is ideal for smooth performance
• Wired connection preferred over Wi-Fi when possible

If someone's home internet isn't adequate, address it now, not when they're trying to e-file 50 returns on April 14th.

Tax Software Readiness

Updates and Testing

Tax software for 2020 tax year should be installed and tested by now. If you're still on last year's version, you're behind.

Test your tax software thoroughly:

• Does it launch correctly over remote connections?
• Are all integrations working?
• Can you e-file test returns successfully?
• Are all workstations licensed correctly?

Find problems now, not on February 1st when clients are waiting.

Concurrent User Licenses

With everyone remote, you might discover that your tax software licenses don't support enough simultaneous users. Verify licensing now and upgrade if needed.

Cloud File Sharing

Last tax season, many firms adopted cloud file sharing tools (Dropbox, Box, SharePoint) for client document exchange. If you're continuing that approach this year, secure it properly:

Access Controls

• Use separate folders for each client
• Apply permissions so staff only access their assigned clients
• Review and revoke access after returns are filed
• Disable public sharing links

Client Portal Security

If clients upload documents through a portal:

• Require strong passwords
• Use encrypted connections (HTTPS)
• Provide clear instructions for secure upload
• Set expiration dates on upload links
• Delete uploaded files after processing

Email Attachment Limits

Train clients not to email tax documents as attachments. Email is not secure for sensitive financial information. Direct them to your secure portal or file sharing system instead.

Backup Strategy for Remote Work

With staff working from home on laptops, your backup strategy needs to account for distributed data.

Cloud Backup for Remote Devices

All laptops should have automatic cloud backup configured. Don't rely on staff to remember to backup manually.

Verify backups are actually running. Check logs weekly during tax season.

Centralized Data Storage

Work-in-progress tax returns should be stored centrally (server, cloud storage) not just on local laptops. That way backups capture everything and data doesn't get lost if a laptop fails.

Test Restores

Before tax season, do a test restore of tax software database and client files. Time how long it takes. Document any issues you encounter.

You don't want to discover your backups are corrupted when you actually need them.

Security Awareness

Tax season is prime time for phishing attacks targeting accounting firms. Refresh your team's security awareness before busy season starts.

Common Tax Season Scams

Warn staff about:

• Fake IRS emails (IRS doesn't initiate contact via email)
• Phishing emails pretending to be from tax software vendors
• Fake client emails with malware attachments
• Wire transfer scams targeting tax refunds
• Ransomware disguised as tax-related documents

Verification Procedures

Establish procedures for verifying unusual requests:

• Client asking for refund to be wired to new account: call them at known number
• Email from partner requesting urgent action: verify via phone or text
• Unexpected tax documents attached to email: confirm sender before opening

Make verification a habit, not an exception.

Seasonal Staff Onboarding

If you hire seasonal staff for tax season, plan their IT onboarding now:

Equipment

• Do they get company laptops or use personal computers?
• What security software needs to be installed?
• How will they connect remotely?

Access Provisioning

• What systems do they need access to?
• How quickly can you provision new accounts?
• Who approves access requests?

Training

• Security awareness for remote work
• How to use VPN and remote access tools
• Secure document handling procedures
• Who to contact for IT problems

Have all this documented and ready before seasonal staff arrive.

Communication Tools

With remote teams, communication tools become critical infrastructure.

Video Conferencing

Establish standards for client meetings:

• Which platform to use (Zoom, Teams, etc.)
• Security settings (passwords, waiting rooms)
• What's allowed to be discussed over video vs. requiring phone or in-person

Internal Chat

If you use Slack, Teams, or similar for internal communication:

• Don't share client tax information in chat
• Use appropriate channels for sensitive discussions
• Be aware chat history is retained and potentially discoverable

Workstation Performance

Tax software is resource-intensive. Make sure staff have adequate hardware:

• Minimum 8GB RAM, 16GB better
• SSD storage for faster performance
• Reasonably current processor (nothing more than 5 years old)
• Dual monitors if possible (significantly improves productivity)

Slow computers cost more in lost productivity than they save in hardware costs.

IT Support Availability

Talk to your IT support company now about their availability during tax season:

• What are their response time commitments?
• Do they have after-hours support?
• What's the escalation process for urgent issues?
• Have they documented your tax software environment?

Get these commitments in writing before tax season starts.

Contingency Planning

Despite best preparation, things will go wrong. Have contingency plans:

If VPN Goes Down

Can staff work locally on downloaded files and sync later? Do you have backup VPN access? Is there a vendor support number to call?

If Tax Software Server Fails

How quickly can you restore from backup? Do you have hardware spares available? Can you shift to a backup server?

If Internet Goes Out

Can critical staff work from the office if needed? Do you have backup internet (cellular failover, etc.)?

If Ransomware Hits

Is your backup recent and accessible? Who do you call for incident response? How do you notify clients? What's your recovery timeline?

Document these contingencies now, before you need them.

Lessons from Last Year

What went wrong during tax season 2020? What near-misses did you have? What frustrations did staff report?

Document those lessons and address them now. Tax season 2021 is your chance to implement what you learned from tax season 2020's chaos.

Our Take

Tax season 2021 will be challenging, but it doesn't have to be as chaotic as 2020. You have time to prepare properly. You know remote work is happening. You know the security risks. Use that knowledge to get ready now.

If you need help with remote access setup, security hardening, backup verification, or tax season IT prep, we can help. We've been working with Arizona accounting firms since 1991, and we helped dozens of them survive tax season 2020. We know what worked and what didn't.

Tax season starts now. The filing deadline is April 15th. That's 74 days. Use them wisely to prepare your IT infrastructure for the demands ahead.