04 Feb 2012 Tax Law – Overview
After weeks, indeed months of proposals and counter-proposals,seemingly endless negotiations and down-to-the-wire drama, Congress has passed legislation to avert the tax side of the so called “fiscal cliff”. The American Taxpayer Relief Act permanently extends the Bush-era tax cuts for lower and moderate income payers, permanently “patches” the alternative minimun tax (AMT), provides for a more permanent 40-percent federal estate tax rate, renews many individual, business and energy tax extenders, and more. In one immediately noticeable effect, the American Taxpayer Relief Act does NOT extend the 2012 employee-side payroll tax holiday.
The American Taxpayer Relief Act is intended to bring some certainly to the Tax Code. At the same time, it sets the stage for comphrenhensive tax reform, possibly in 2013. Moreover, it creates important planning opportunities for taxpayers, which we can discuss in detail.
If you are a current client, please contact me to read my extensice overview of the American Taxpayer Relief Act.