no wonder they call it busy season!
here’s a quick list of the new wrinkles tax professionals are confronting this filing season, from ppc’s jim reeves.
how many of these are you ready for?
- revised form 990;
- estate tax legislation;
- federal income tax legislation as a significant component of the economic stimulus package;
- amt scheduled to affect 33 million taxpayers in 2010;
- over 30 tax provisions scheduled to expire in 2009;
- president obama’s campaign promises of tax increases on individuals with income exceeding $250,000, creating a potential marginal tax rate exceeding 60% when you consider:
- a marginal income tax rate of 39.6%,
- a 20% tax rate on long-term capital gains and dividends,
- a combined employee and employer social security tax raised by 2%-4% for families (not individuals) earning over $250,000,
- a return of the phase out levels for itemized deductions and personal exemptions back to their levels under president clinton, and
- state income taxes for most americans;
- congressional attack on the current 401(k) system;
- tax aspects of bankruptcy, liquidations, debt restructuring;
- many state budgets facing shortfalls; and
- new preparer penalty rules that raised the stakes for tax return preparers and advisors
h/t ppc’s jim reeves
one response to “top issues changing the lives of tax practitioners”
@rebeckamelson
yea, and add on to that the extra paperwork with the disclosure forms we have to get signed. this may be my last tax season. i don’t know if it’s worth the headache anymore.