While most Americans have been relaxing and enjoying the holiday season, the tax industry has been vigorously studying the new tax bill. Yes, there’s a still lot up in the air regarding how this coming tax season will go down but there’s one thing we know for sure: tax pros should not be worried about their professions.
Why Taxpayers Still Need Us
The tax law was touted to be simpler. In fact, there’s a rumor being spread that filing your taxes is as simple as filling out a postcard. Don’t worry tax preparers, that is just not the case. This new legislation is going to leave taxpayers in need of more advice than ever before. There are some very complex provisions that will require additional work when it comes to planning for the tax year.
For taxpayers and tax professionals, the new code means:
- New regulations.
- New tax planning strategies that businesses and individuals should get a jump on starting January 1st.
- Technical corrections to go over (Accounting Today points out that in their haste to get this bill passed, there’s no way they got everything right).
- The IRS has its hands full and will likely not be able to respond to everyone with a question about the new law.
- Business entities will need to take a look at how they’re structured.
Major change in an already complex industry means there will be a lot of questions and confusion. It will require professionals who know how to read the law and understand it.
The change in law has not been the best news for the Accounting industry thanks to the bill’s treatment of pass-through entities that are service based. According to AICPA president and CEO Barry Melancon, “While the tax reform legislation contains several provisions that should be welcomed by CPAs and their clients, the AICPA is very disappointed by lawmakers’ decision to exclude CPAs from the measure’s treatment of pass-through entities.” Unfortunately, the professional services sector will not qualify for the new deductions that were given to other businesses.
There are a lot of moving parts on the new legislation and its effects and unintended consequences are yet to be seen. All of this means that taxpayers and businesses will need your expertise and advice now more than ever.
We will keep you up-to-date as we get a handle on the new legislation. Stay tuned to our blog for updates and look for new education opportunities as well.