As client expectations evolve, more tax professionals are turning to text messaging to streamline communication with their clients and reduce no-shows, especially during the busiest months of the year. SMS is fast, direct and practical, helping firms minimize admin overhead, increase client response rates and drive more on-time filings. Unlike email or phone calls, business texting comes with its own set of compliance responsibilities.

If you’re not familiar with the TCPA, CTIA guidelines and the latest 10DLC registration requirements, you’re not alone, but skipping over those details could put your practice at risk. Keeping client data safe is non-negotiable, but that does not mean you cannot benefit from the robust power of automated SMS.

It sounds daunting, but with the right tools, you can fully leverage texting without worrying. In this article, we’ll walk through the essential rules, common pitfalls and how to choose a texting platform that keeps you protected so you can communicate with confidence this tax season and beyond.

Why SMS is a smart move for tax firms

Tax season moves fast, and so do your clients. Busy schedules make staying connected challenging. That’s why more tax pros are turning to SMS; it cuts through the noise and gets noticed.

Text messages have a 98% open rate, and most are read within minutes. That’s invaluable when you’re confirming appointments, sending last-minute reminders or prompting clients to upload documents. Unlike emails that get buried or phone calls that go to voicemail, texts are short, direct and convenient for both sides.

Texting also reduces the burden on your front office, freeing up staff to handle more complex tasks and enabling your firm to serve more clients without adding headcount. Fewer phone tag loops. Fewer no-shows. More automation.

With a platform like Textellent, which integrates with all major tax software, you can send automated campaigns and touchpoints without any manual effort on your end. Imagine having all your clients invited back based on the date of their appointment last tax season. The impact is huge, and this is just one of many! Whether you’re a solo practitioner or managing a multi-office operation, SMS can streamline client touchpoints during your busiest time of year.

An ideal platform will allow users to integrate with their tax preparation and practice management software, enable users to send individual messages directly from within the software and send automated messages based on their business rules.

For example:

• Inviting last year’s clients back
• Requesting online referrals and reviews from your current customers
• Schedule appointments with a convenient link
• Send reminders and allow rescheduling if needed
• Nudge clients to complete their organizer or submit missing documents
• Reach out to non-returning clients to win them back
• Follow up on returns needing signatures or final review

It’s simple, scalable and drives ROI while meeting clients’ expectations for fast and convenient communication.

Understanding the compliance landscape

Before texting clients, you must understand the rules for how businesses can use SMS. There are industry guidelines and federal regulations designed to protect consumers from spammy messages.

Here’s a quick breakdown of the three compliance issues tax pros should know:

• TCPA (Telephone Consumer Protection Act): This federal law requires businesses to get consent before texting clients. It requires that clients have the option to opt out at any time. If you’re sending marketing messages (like a reminder to book early for tax season), you’ll need explicit consent.
• CTIA (Cellular Telecommunications Industry Association): The CTIA sets best practices for SMS content and delivery. This includes factors such as frequency, opt-in/opt-out language and guaranteeing that messages aren’t deceptive/misleading. Violating these guidelines can result in your number being flagged or even blocked.
• 10DLC registration: This is the newer layer of compliance that applies to business texting in the U.S. If you’re sending texts through an application (like a texting platform) using a standard 10-digit phone number, carriers now require you to register that number. It’s designed to reduce spam and protect consumers while ensuring that your messages are delivered.

If you’re using a basic texting app, you may already be exposing yourself to compliance issues without knowing it. That’s why choosing a platform built for business use and set up for 10DLC compliance is the safest bet.

What “IRS-compliant” texting looks like

Let’s clear something up. The IRS doesn’t prohibit texting. It recognizes that clients expect fast communication. However, it does expect tax professionals to protect taxpayer information, regardless of the channel.

Text messages are great for:

• Confirming or rescheduling appointments
• Reminding clients to upload documents to a secure portal
• Letting clients know their return is ready or needs review
• Following up on e-signature requests

However, texts shouldn’t be used to send or receive sensitive information, such as Social Security numbers, banking details or attachments containing personal financial data. That kind of communication should be directed to your secure client portal.

For example, you can send a text reminder that a document is needed and include a secure link to the upload portal, keeping the sensitive exchange off SMS while still leveraging the speed and visibility of text messaging.

Another key factor? Archiving. Like emails or phone records, the IRS expects relevant SMS communication to be documented appropriately. A good platform will enable users to export records as PDFs.

Bottom line: texting can be a great way to connect with clients and stay compliant. You just need a tool that’s built for the tax world and understands how to keep things secure and above board.

Consent and opt-outs – getting it right

Before you send a single text, ensure your client has given you the green light. That means clear, documented consent, especially if your message has any marketing intent.

There are a few easy ways to collect consent:

• Include a texting opt-in checkbox on your new client intake form
• Ask clients to confirm via text or email that they’d like to receive updates via SMS
• Use online forms with a built-in opt-in toggle

Once you receive permission, you also need to give clients a way to change their minds. Include opt-out instructions periodically in your messages, like “Reply STOP to unsubscribe.”

An ideal platform will take care of the heavy lifting by:

• Allowing you to include opt-out language in your campaigns automatically
• Instantly honoring STOP requests and managing unsubscribes
• Maintaining a clear audit trail of when and how consent was given

Modernize without risk

SMS offers tax professionals a smarter way to grow by simplifying operations, boosting client satisfaction and reducing lost revenue from missed appointments.

By understanding the basics of TCPA, CTIA and 10DLC, and utilizing a texting platform designed for tax professionals, you can confidently incorporate SMS into your client communications. The right SMS tool handles consent, archiving and compliance so you can focus on your clients.

If you’re ready to modernize your practice this tax season, Textellent is here to help - try it free for 14 days.