Top Issues Changing the Lives of Tax Practitioners

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