Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

Professionals Consider Potential Tax Issues for Busy Season and Beyond

S.J. Steinhardt
Published Date:
Nov 28, 2023

With Congress still needing to pass bills to keep the government open by early next year, there may be little time to consider new tax legislation. Meanwhile, the Treasury Department, the IRS and the courts still have to enforce and interpret existing tax laws and regulations, Accounting Today reported.

"There's a lot of pent-up demand for tax legislation, but because of the time of year that we're in, the number of days that are left, the big issues that are probably a priority, and using a lot of members' time, I'm not sure it's realistic to think that tax legislation can be agreed upon and put together and bills introduced, even within each of the caucuses in each of the chambers," said Rochelle Hodes, a  principal in Crowe LLP’s Washington national tax office, in an interview with Accounting Today.

House Republicans have been trying to cut the IRS’s budget, but the recent agreement to keep the government running for a few more weeks may have abated that threat for now.

"The IRS is putting out lots of information about what it is doing with the money that it's received, and Secretary [Janet] Yellen went to the IRS and made a statement about the progress that's being made in updating and modernizing technology for notice responses and processing," said Hodes. "We've seen over the fall a couple of news releases about the IRS's initiatives on enforcement and a lot of varying think tanks and stakeholders have been making statements about their views regarding IRS funding, so it appears that there is a significant effort to try and help the IRS to keep the funding that it received under [the Inflation Reduction Act]."

Hodes also noted that the IRS has been issuing guidance for various provisions of that legislation. "The IRS and Treasury are making large efforts to show what they're doing with the money," she said.

Another concern is the provisions of the Tax Cuts and Jobs Act of 2017 that are due to expire in 2025.

"Lots of things could happen in terms of the sunset," said Edward Renn, a partner on the private client and tax team of law firm Withers, in interview with Accounting Today. "Are you going to get 39.6 percent back? Are you going to get higher tax brackets or are capital rate gains rates going to be more income-based? Are you going to get more progressivity there, where higher earners are going to pay at higher rates?"

Renn also noted that the Moore tax case before the Supreme Court, for which oral arguments are scheduled on Dec. 5, could also have an impact on tax planning.

"Watching the corporate 15 percent tax case in the Supreme Court may very tell you whether there's going to be any life in the idea of a wealth tax going forward, or [whether it is] going to be held unconstitutional," he said.

Renn also called the IRS’s recent changes to tax brackets “not insignificant.”

To prepare for the upcoming busy tax season, attend the Foundation for Accounting Education’s Getting Ready for Busy Season: Key Changes Every Tax Practitioner Should Know Webcast on Dec. 29.

Click here to see more of the latest news from the NYSSCPA.