CPA Trendlines

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

Posted January 27, 2009
Related Topics: tax season