The seven tasks that are most beneficial to outsource from tax season 2027 are document collection, data entry, Schedule 1-A deduction checks, individual return preparation, business return preparation, bookkeeping clean-up, and workpaper preparation.
Firms that outsource this production work free their CPAs for review and advisory, and a reliable tax outsourcing provider can start well before January. The 2026 season shows why the timing matters: some of this work will not shrink next year. The IRS expected about 164 million individual returns, and the new Schedule 1-A covered deductions for qualified tips, qualified overtime, car loan interest, and an enhanced deduction for seniors.
Each deduction adds eligibility questions:
- Overtime: Eligible taxpayers can deduct up to $12,500 of qualified overtime compensation ($25,000 on a joint return). Only the premium portion of overtime required by the federal Fair Labor Standards Act qualifies, and the deduction phases out above $150,000 MAGI ($300,000 joint).
- Car loan interest: Up to $10,000 of interest is deductible on a loan for a new vehicle with final assembly in the United States, with a phaseout above $100,000 MAGI ($200,000 joint).
- Seniors: Taxpayers 65 or older may qualify for an additional $6,000 deduction, subject to income limits.
- Form 4547, Trump Account Election(s): An authorized individual can use it to open a Trump Account for an eligible child. To elect the one-time $1,000 pilot program contribution, the child must be a U.S. citizen born from 2025 through 2028, and the filer must expect to claim the child as a qualifying child.
These deductions are temporary. They apply to tax years 2025 through 2028, so they appeared on 2025 returns filed in 2026 and will apply to 2026 returns filed in 2027. the Schedule 1-A instructions, IRS Fact Sheets 2026-01 and 2026-13, and the Form 4547 instructions.
The seven tasks to outsource to prepare taxes
- Document collection:
Hours go chasing client documents such as W-2s, 1099s, and lender statements. An outsourced team can create checklists, send reminders, and sort incoming files so returns can start complete. Include Form 1099-DA for clients who had digital asset transactions.
- Data entry from source documents:
This is the high-volume manual entry of wages, interest, and brokerage information into tax software; it does not require judgment.
- Schedule 1-A deduction checks:
Staff can gather the evidence for tips, overtime, car loan interest, and senior deductions and flag eligibility questions. For 2026 returns, overtime generally can be claimed only up to the amount employers report on Form W-2, box 12, code TT, so checks should compare client records to the W-2.Ultimately, it’s up to your CPA.
- Individual returns (Form 1040):
Individual returns are usually the first drafts to hand off, because they are repeatable and high volume.
- Business returns:
Several providers support 1120-S, 1065, 1120, and 990 returns (Datamatics is one example), which suits firms with a high number of entity returns. [Keep or remove the Datamatics example; no other provider is named in the original.]
- Bookkeeping clean-up and reconciliations:
Business returns rely on clean books, so reconcile accounts before preparation begins, not during review.
7. Workpapers and review preparation:
Tick-and-tie, workpaper assembly, and review checklists let your reviewers start from prepared workpapers. The same team can gather the information needed for Form 4547 elections for clients with eligible children, but the election is the client’s decision and is signed by an authorized individual under penalties of perjury.
Workpapers and review preparation: Tick-and-tie, workpaper assembly, and review checklists allow your reviewers to begin on prepared workpapers, and the same team can prepare Form 4547 elections for clients that have eligible children.
What to have in-house.
Outsourcing is not about accountability. Save these with your US team:
- Final review and sign off of all returns
- The client’s opinion regarding the deductibility of the deduction
- Sensitive client communication
- To authorize and decide on an e-file.
Choosing among the tax outsourcing companies
On paper, these providers can all sound similar, so ask them any of the following questions:
- Which returns do your preparers work on each season? Look for experience with the forms your clients use.
- How do you keep client data secure? Ask about access controls and certifications such as SOC 2 Type II, and how they support Section 7216 taxpayer consent when return information is disclosed to a team outside the United States.
- Can you scale during peak weeks? Verify capacity before the season, not during it.
- How is work returned? Agree on the format, review notes, and turnaround for each return.
Inquire from tax outsourcing firms regarding a sample workflow and talk with a service of a similar size that does use tax outsourcing services.
When to start
Onboarding takes time. The IRS opened the 2026 filing season on January 26, so plan for a January start again and begin a pilot well ahead of time. Pick one service line, such as a batch of individual returns, and measure three things:
- Turnaround time against your internal deadline
- First-review error rate
- Review time your own staff spend on each return
If the results are positive, expand to other return types.
Conclusion
The 2026 changes showed that complexity can grow faster than headcount, straining overburdened tax teams. When a trained team handles document handling, data entry, and first drafts, CPAs can focus on review, client counsel, and higher-value services. When evaluating tax outsourcing companies, look at staff training, data security, quality controls, and capacity, and run a pilot before the busy season.
Corient Business Solutions supports CPA firms with trained professionals, scalable support, and reliable processes to manage tax preparation workload while keeping quality and client service front and center for in-house teams.
