A guide for CPA firms to stay ahead, stay efficient, and keep clients happy.

The IRS has made its intentions clear: by 2026, most tax processing will be fully paperless.

For CPA firms—especially smaller ones—this isn’t just a tech update. It’s a shift in how we work, how we communicate with clients, and how we deliver value.

If your firm is already battling bandwidth issues, email overload, and manual data entry, now’s the time to reset.

Let’s unpack what this shift means—and what you can start doing today to future-proof your workflows and exceed client expectations.

Clients Will Expect Faster, Smarter Communication

As IRS systems go digital, clients will follow suit. They’ll expect quicker responses, easier access to their documents, and more proactive guidance from their advisors.

Here’s how to get ahead of the curve:

• Implement a secure client portal (e.g., Canopy, SmartVault) for document sharing and updates

• Use encrypted messaging tools for quick back-and-forths

• Set up automated reminders for deadlines, document requests, and tax milestones

Why it matters: Timely, digital communication reduces chaos during the busy season and builds long-term client trust.

Data Integrity Becomes Even More Critical

In a paperless environment, there’s less room for human error. One wrong number on a 1099 or K-1 can spiral into notices, penalties, or worse.

Start by:

• Using data validation tools that flag missing or inconsistent information

• Standardizing data entry workflows across your team

• Offering regular training on accuracy, audit triggers, and compliance

Pro tip: Make “data quality” part of your firm culture — not just a tax season checklist.

Streamlined Data Intake = Accurate Client Reporting

Say goodbye to scattered email threads and vague document requests. In a paperless world, clients need simple, structured ways to submit complete info.

Try this:

• Use smart questionnaires that collect everything in one go

• Segment document requests by filing type (e.g., K-1, 1099, W-2 clients)

• Share client-specific checklists before tax season begins

The goal? Eliminate guesswork and reduce back-and-forth.

Get Ahead on Paperless 1099 and K-1 Filing

As e-filing becomes the default, firms will need to handle larger volumes of 1099s and K-1s with speed and precision.

Steps to take:

• Train your team on e-file rules, penalties, and new submission thresholds

• Adopt reliable software that integrates with your tax stack

• Audit past data to spot gaps and prep for future automation

Don’t wait for January. Build your 1099/K-1 systems now, while you still have breathing room.

Automate E-Filing to Beat the Rush

The real win of going paperless? Automation. Done right, it removes stress, cuts risk, and gives your team their nights and weekends back.

What to implement:

• E-filing software with auto-import, real-time validation, and direct IRS integration

• Automated alerts for key filing dates and client deliverables

• Scheduled software updates to stay IRS-compliant

When your systems talk to each other, your staff can focus on strategy—not chasing signatures.

Educate Clients on Their Role in a Paperless World

A digital shift isn’t just about your firm—it’s about how your clients adapt, too.

Support them with:

• Webinars or Q&A sessions to walk through the new process

• Simple guides that explain what’s expected and how to submit documents securely

• Regular email updates on what’s changing and how it impacts them

Clients who feel empowered are less likely to drop the ball—and more likely to stick with you.

Rethink Workflows from the Ground Up

A paperless IRS requires new internal playbooks. It’s not just about tech—it’s about how your team operates day to day.

Key changes to make:

• Assign clear ownership for tasks like e-filing, portal setup, and client communication

• Centralize all files and updates in your DMS or portal—no more siloed info

• Schedule ongoing training on digital tools and workflow updates

If you want consistent results, you need consistent systems.

Manage Expectations, Boost Satisfaction

With clients expecting more, CPA firms must be intentional about how they deliver.

What works:

• Clear service agreements that spell out what clients can expect and when

• Feedback loops—ask what’s working and what’s not

• Forward-looking advice—help clients plan, not just file

When clients feel guided—not just served—you’ll deepen loyalty and referrals.

Final Word: Change Is Coming. Lead Through It.

The IRS paperless transition isn’t a distant concern — it’s already underway.

And for small CPA firms, it’s the perfect time to modernize.

Those who embrace digital workflows, client education, and smart automation will come out ahead, not just surviving but thriving.