CPA Practices NAICS 541211

Apr 24, 2026 - Structural Industry Staffing Shortage Worsens

• The CPA profession in 2026 is grappling with a structural talent shortage fueled by a shrinking pipeline and mass exits in an environment of sustained demand. The number of CPA candidates has dropped roughly 30% since 2016, while universities produce about 55,000 accounting graduates annually against more than 120,000 job openings, according to industry analyses. At the same time, an estimated 300,000 accountants have left the workforce in recent years, with many nearing retirement age. Demand remains intense - unemployment in the field hovers near 112%, per Robert Half - driving longer hiring cycles and rising compensation. Compounding the issue, automation is reducing entry-level roles, weakening the profession’s ability to train future CPAs. Together, these forces have created a persistent imbalance between supply and demand, forcing firms to rethink hiring, retention, and service delivery in ways that are likely to shape the industry for years to come.
• Tax refunds in 2026 are higher overall but failing to meet expectations at a national level, according to Internal Revenue Service data. The average refund is about $3,462 - roughly an 11% increase from $3,116 last year - while total refunds have climbed significantly, with more than $241 billion issued, up about 14% year over year. The increases are largely driven by new tax law changes, including expanded deductions for tips, overtime, and seniors, as well as higher credits. However, early projections suggest refunds could rise by as much as $1,000 per filer, but actual gains have been closer to $300-$350 on average. The impact has been uneven across households, depending on income, withholding, and eligibility for deductions, which results in smaller-than-expected returns for many taxpayers. While refunds are objectively larger, their perceived financial impact is muted, especially amid broader economic doldrums.

• The Internal Revenue Service (IRS) has shifted away from paper refund checks, making electronic transactions the default and creating new compliance and client-service considerations for CPAs. Accurate bank or prepaid account information is now critical at filing; missing or rejected details can trigger IRS notices, refund holds, and follow-up deadlines that increase administrative burdens. From a risk-management standpoint, the move reduces fraud exposure and improves processing efficiency, but it also raises the stakes for data accuracy and client education. CPAs will need to proactively confirm direct deposit details, explain acceptable nonbank options, and manage client expectations around timing when exceptions occur. Overall, the change reinforces the growing importance of payment mechanics in tax administration - turning refund delivery into another area where procedural precision and upfront verification are critical.
• The 2025 mix of tax cuts, tariffs, and benefit reductions will shape a complex year for CPAs and tax preparers. An estimated $125 billion in tax cuts tied to 2025 returns will arrive during spring filing season, with another $80 billion flowing through 2026 via payroll withholding changes, increasing demand for tax planning and return preparation, according to Evercore. Benefits, however, are skewed toward higher-income households, while low-income filers see almost no relief due to minimal income-tax liability. Cuts to Medicaid, Supplemental Nutrition Assistance Program benefits, Affordable Care Act premium credits, and stepped up student loan collections will complicate household tax and financial situations, increasing advisory needs. Tariffs and benefit cuts are expected to reduce disposable income for most households outside the top 30% of earners, per Yale’s Budget Lab, raising questions around credits, deductions, withholdings, and retirement planning that CPAs and tax professionals will need to address in 2026.