ATX tax software has carved out a solid reputation among tax professionals and accounting firms looking for robust, scalable solutions. If you’re considering whether this platform deserves a spot in your tax practice toolkit, you’ve landed in the right place. We’ll break down what makes ATX tick, who it’s actually built for, and whether it’s the right fit for your firm.
Table of Contents
What Is ATX Tax Software?
ATX tax software is a desktop-based tax preparation platform designed primarily for accounting professionals, CPAs, and tax firms rather than individual filers. Developed by Thomson Reuters, it’s been a fixture in professional tax offices since the late 1980s. The software handles federal and state income tax returns, along with various business entity types and specialized returns.
Think of ATX as the workhorse in the professional tax software arena. It’s not flashy or consumer-facing, but it’s built with the specific workflows and compliance requirements that tax professionals deal with every single day. If you’re running a tax practice, this is software that understands your pain points.
Core Features That Stand Out
ATX tax software includes several features that resonate with busy tax practices:
Multi-State Return Capability: The software handles returns across all 50 states plus D.C., which matters if you’re serving clients nationwide. You’re not jumping between different platforms for different state requirements.
Entity Type Flexibility: Whether your clients are sole proprietors, S-corps, partnerships, or complex entities, ATX accommodates them. This breadth means you’re not buying separate modules for different business structures.
Integrated Workflow Tools: The platform includes time tracking, document management, and client communication features built directly into the software. You’re not cobbling together five different tools.
Audit Trail & Compliance: Every change is tracked and logged. For firms dealing with regulatory scrutiny or client disputes, this creates a clear record of who changed what and when.
When combined with smart tax planning strategies, ATX becomes even more powerful for proactive client work rather than just reactive return preparation.
User Interface & Ease of Use
Let’s be honest: ATX isn’t winning design awards. The interface feels utilitarian, with a learning curve that can frustrate new users. But here’s the thing—experienced tax professionals often prefer this. Once you’re familiar with the layout, you move quickly because the software is organized around how tax work actually flows.
New team members will need training, and that’s worth budgeting for. The software assumes you understand tax concepts and aren’t holding your hand through basic decisions. There’s no “next, next, next” simplicity here.
That said, Thomson Reuters has been modernizing the interface gradually. If you’re coming from older versions, newer releases feel noticeably more intuitive, with better search functionality and cleaner navigation.
Pricing Structure Breakdown
ATX uses a per-return pricing model rather than a flat annual fee. This means:
- You pay for each return you prepare (individual, corporate, partnership, etc.)
- Pricing varies by return type and complexity
- You typically need an annual license or subscription
- Add-ons for state-specific modules, extensions, or advanced features cost extra
For a solo practitioner preparing 50 returns annually, the costs look reasonable. For a large firm handling hundreds of returns, the per-return model can add up quickly. You’ll want to request a detailed quote based on your specific volume and return mix.
The pricing is generally competitive with other professional-grade platforms like ProConnect or Lacerte, though direct comparison requires knowing your exact return volume.
Client Management Capabilities
ATX includes client management features, but they’re functional rather than feature-rich. You can store client information, track engagement, manage documents, and communicate within the platform. For a tax practice, this is sufficient.
However, if you’re looking for deep CRM capabilities—like sophisticated pipeline tracking, marketing automation, or advanced reporting—you might find ATX’s client management somewhat basic. Many larger firms use ATX alongside dedicated CRM software like Karbon or Jet for enhanced client relationship management.
The document management piece is solid. You can store supporting documents, organize by client, and maintain a clean audit trail of what was received and when. This matters when the IRS comes knocking or a client disputes what they submitted.
Security & Compliance Standards
Thomson Reuters takes security seriously because the alternative—a breach exposing client tax data—would be catastrophic for any firm. ATX includes:
- Encryption for data in transit and at rest
- User authentication and role-based access controls
- Compliance with IRS security standards for e-file submissions
- Regular security updates and patches
- Backup and disaster recovery capabilities
The software meets the requirements for state tax board registrations and maintains compliance with IRS regulations around data handling. If you’re filing electronically (which most practices do), ATX’s security infrastructure is built for that.
That said, security is only as strong as your firm’s practices. Even with robust software, you need strong password policies, staff training, and secure client communication channels. ATX provides the tools; you provide the discipline.
Support & Training Resources
Thomson Reuters offers multiple support channels:
- Phone support during tax season and year-round
- Online knowledge base and video tutorials
- Webinars and training sessions (some free, some premium)
- User community forums where practitioners share tips
During tax season, support can get backed up. Response times aren’t always immediate, which can be frustrating when you’re on a deadline. Many firms budget for at least one staff member to become deeply familiar with the software so they can troubleshoot internally.
The training materials are decent but geared toward users who already understand tax concepts. If you’re onboarding staff with no tax background, you’ll need to supplement ATX’s training with your own firm-specific guidance.
Pros and Cons Summary
Pros:
- Comprehensive multi-state and multi-entity support
- Trusted by thousands of tax professionals nationwide
- Integrated workflow and document management
- Strong security and compliance infrastructure
- Reliable e-file capabilities
- Good audit trail and tracking for accountability
Cons:
- Steep learning curve for new users
- Utilitarian interface lacks modern polish
- Per-return pricing can escalate with volume
- Client management features are basic
- Support can be slow during peak tax season
- Requires staff training investment
How It Compares to Competitors
vs. ProConnect Tax: ProConnect (also Thomson Reuters) is cloud-based and more modern in interface. ATX is desktop-based and more traditional. ProConnect appeals to firms wanting cloud flexibility; ATX appeals to firms comfortable with desktop software and wanting established workflows.
vs. Lacerte: Lacerte (Intuit) is another professional-grade option. Both ATX and Lacerte have loyal followings. Lacerte tends to have a slightly more modern interface, while ATX has deeper integration with Thomson Reuters’ broader tax research tools.
vs. TaxAct Professional: TaxAct is more affordable for smaller practices but lacks some of the advanced features and multi-entity depth that ATX offers. It’s a good choice if you’re small; ATX scales better as you grow.
If you’re building a comprehensive tax practice, understanding your specific needs around state coverage and entity types will guide whether ATX, ProConnect, or a competitor makes more sense.
Frequently Asked Questions
Is ATX tax software only for accountants?
Technically, no—anyone can purchase it. Practically, yes. The software is designed for tax professionals who understand tax concepts and workflows. Individual filers would find it overwhelming and unnecessarily complex. Use consumer software like TurboTax or TaxAct if you’re filing your own return.
Can I use ATX in the cloud?
ATX is primarily desktop-based, though you can access it remotely through remote desktop solutions or virtual machines. If you want native cloud-based software from Thomson Reuters, ProConnect Tax is the option. ATX stays on your computer or firm network.
Does ATX handle cryptocurrency or crypto income?
Yes. ATX includes forms and workflows for reporting cryptocurrency transactions, mining income, and capital gains. As crypto becomes more common in client portfolios, this capability matters.
What about state-specific tax credits and deductions?
ATX includes state-specific features and prompts for major credits and deductions. However, tax law changes constantly, and some specialized situations might require manual entry or research. This is where integrating ATX with comprehensive tax planning strategies and tax research tools becomes valuable.
How long does it take to learn ATX?
For someone with tax experience, a few weeks to a couple months. For someone new to tax, several months plus formal training. Budget for a learning curve and don’t expect new staff to be fully productive immediately.
Is ATX GDPR compliant?
Yes, Thomson Reuters has implemented GDPR compliance measures. If you have international clients or handle EU personal data, confirm the specifics with their compliance team, but the software meets the standard requirements.
Can I integrate ATX with other accounting software?
Yes, ATX integrates with QuickBooks and other accounting platforms through standard data exchange formats. This allows you to pull financial data from your accounting software into ATX without manual re-entry, saving time and reducing errors.
What’s the difference between ATX and ProConnect?
The main difference is cloud versus desktop. ProConnect is cloud-based and modern; ATX is desktop-based and traditional. Both are Thomson Reuters products. Choose ProConnect if you want cloud access and a modern interface; choose ATX if you prefer desktop software and established workflows.
The Bottom Line
ATX tax software is a solid, reliable choice for tax professionals who want a comprehensive, multi-state, multi-entity platform. It’s not the flashiest option, and it has a learning curve, but thousands of tax firms rely on it for good reason.
If you’re a solo practitioner or small firm preparing returns across multiple states, ATX delivers the functionality you need. If you’re looking for cutting-edge UI design or deep CRM features, you might be disappointed. If you prioritize reliability, compliance, and comprehensive tax handling, ATX deserves serious consideration.
The best decision comes down to your specific needs: How many returns do you prepare? How many states? What entity types? Do you want cloud or desktop? Once you answer those questions, ATX’s fit becomes clearer.
Consider requesting a demo and talking with other practitioners in your niche. Real-world experience from peers who’ve used ATX for years often reveals nuances that marketing materials miss. And remember, choosing tax software is important, but pairing it with solid tax planning strategies and estate tax planning is what truly serves your clients well.
