Friday, December 28, 2012

2013 Tax Season: If You Are a Preparer, Start Praying NOW

While the tax preparer community may had bigger changes in tax law than those coming in 2013 (1975, 1982, 1994, 2004 and especially 1987 come to mind); I cannot remember in 35+ years of having some association with taxes a year starting with more uncertainty and lack of clarity.  The obvious issues are the impact of the Affordable Care Act/Obamacare; the fiscal cliff/sequestration and the likely end of Bush tax cuts for very high income taxpayers; however, the lack of an AMT patch/extenders for last decade's tax incentives, the possible end of the 2% cut on employee FICA rates and uncertainty about estate and gift taxes also exist.  Only increased rates on "the wealthy" (and no firm agreement on where these higher rates start) are addressed in what appears to be the President's final position on the fiscal cliff.  Since foreign affairs and the debt ceiling appear to be the highest priorities in the first few months of 2013; tax preparers face the likelihood of forms which may be outdated before being printed and retroactive adjustments to the Code during tax season.  Expect many 12 hour days, chain chewing of antacids and what the Wandering Tax Pro calls GDEs (gosh dang extensions--or something like that) in quantity if you prepare taxes for your living.

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