You may remember that 2013 was a big year for taxes. Congress passed legislation averting the so-called "fiscal cliff," and many of the "Obamacare" changes took effect. While few of us who watched the process would consider it Washington's finest hour, we at least had answers to many of the questions that had made proactive planning more difficult over the past few years.
What a difference a year makes! 2014 started off with partisan bickering, and ended with even more gridlock. It took Congress until December 16 to pass "tax extender" legislation, reinstating tax breaks that expired all the way back on January 1. (Those same provisions expire on January 1, 2015 -- meaning Congress will have to do it all over again next year!) About the only thing they could actually agree on was cutting the IRS budget back to pre-2009 levels, which will only make the taxation bureaucracy even harder to navigate.
President Obama and Congressional leaders have said that corporate tax reform is "on the table" for the final two years of the current administration. However, amid the continuing partisan wrangling over the budget, and the approaching 2016 election, there appears to be little appetite on Capitol Hill for significant changes to the personal tax rules.
Ordinarily, we would take this occasion to walk you through the upcoming year's most promising new opportunities to manage your tax bill. This year, however, there just isn't enough "new" to discuss. But we'll be sure to keep you informed of any legislative changes that do make it out of Washington, as well as new regulations or court decisions that could create tax savings. At the same time, we ask that you keep usinformed of changes in your income or other circumstances that might affect your taxes. We're working hard to help you pay less, even if Washington isn't! So if you have questions, don't be afraid to give us a call.