(Here is a special early edition of our Tax Tip Tuesday Video blog arriving early due to the Christmas holiday)
I was hoping I would be able to tell you that we had a tax bill passed before Christmas. Unfortunately, Congress and the President are still going back and forth on who will not get an extension of the Bush era tax cuts, which are due to expire at the end of the year.
The most recent proposal from the President is that taxpayers with over $400,000 of taxable income will see their rate go up starting in 2013. The House has proposed a $1 million dollar amount. They are also arguing about how much spending should be cut.
Unfortunately, they have not yet dealt with the issues that affect the filing of 2012 returns including various expiring provisions and the alternative minimum tax.
Will they get something done before Christmas? That is a definite no. Congress has gone home but has indicated they will be back on December 27th.
My crystal ball is very cloudy on whether they will actually get anything finished before the end of the year. We will continue watching this very closely and will release a special edition of our Tax Tip Tuesday Video Blog as soon as an agreement is reached.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.