By Heather M. Rothman Publication Date: 08/20/2012
Accountants are advising their clients to formulate more than one tax-planning strategy that could be implemented at the end of the year depending on how and when lawmakers address expired and expiring tax law, practitioners told BNA in Aug. 16 interviews.
The need for a multipronged approach was created at the end of 2011 when Congress allowed the “patch” for the alternative minimum tax and dozens of so-called tax extenders to expire. The need intensified in April when Internal Revenue Service Commissioner Douglas Shulman warned that the tax filing season could be a “real disaster” if Congress waits until December to act or if it has to act retroactively in early 2013.
Finally, according to tax professionals, it reached a new level of urgency when Congress adjourned in early August for a five-week break without enacting any tax changes.
“We are looking at our clients’ year-ends on two different scenarios,” said Karl Fava, an accountant with Business Financial Consultants Inc. in Dearborn, Mich. “We are calculating what it would be based on the existing rules and what it would be based on what the new rules would be.” Continue reading full article………………….