There's nothing like waiting until the last minute... and then waiting another day.
Late on January 1, 2013, the fix for the fiscal cliff passed the house and senate. The American Taxpayer Relief Act of 2012, which we can only assume is so named to commemorate the valiant way in which congress has protected American taxpayers by selflessly stepping up in the final hour to do the damned job it was elected to do, extends and/or makes permanent many of the Bush-era tax cuts for those making less than $400,000 ($450,000 married).
Here are the highlights of the bill:
In addition to these highlights, a host of other "Bush-era" credits and incentives have been extended or made permanent.
However, the bill did not address the sequestration (across-the-board spending cuts) but rather, postponed the deadline by two months.
While some may say the 11th-hour grandstanding by congress was unnecessary and entirely avoidable had they exercised marginally more maturity than a bunch of procrastinating college freshman, and that the air of self-congratulatory celebration after what was essentially a kick-the-can solution to the arguably more difficult decisions to be made on spending cuts was patronizing at best, one does have to admit that the ATRA of 2012 will result is less tax for most Americans. In other words, it could have been worse.
The American Taxpayer Relief Act which was passed today to prevent us from going over the "fiscal cliff" is apparently just a stop-gap measure.
Tax increases were not as bad as many feared and spending cuts were few and far between. The major effect of the law will be to delay "sequestration" (automatic across the board budget reductions). Congress will probably revisit tax policy and spending cuts when it tackles the expected increase in the nations's debt limit in February.
Call us for our take on how the law will effect you.
Beginning this year we are introducing client portals to our website.
Federal and State laws keep getting stricter about maintaining the security of tax clients social security numbers (and for good reason).
Attaching documents to emails is no longer considered secure.
Beginning this year you will be able to send and receive documents and information to us via secure portals on our website.
You will then have access to them “in the cloud” whenever you wish.
Call if you would like to know more.