Wolters Kluwer Tax & Accounting looks at the tax provisions of the Infrastructure Investment and Jobs Act
May 23, 2022--(BUSINESS WIRE)--Wolters Kluwer Tax & Accounting:
What: For many taxpayers and tax practitioners, the tax filing season increasingly extends to October, although the end of the spring filing season does offer an opportunity to catch your breath and reflect on what else has been going on in the tax world. Unlike recent years, this spring, Congress did not enact significant tax legislation. This means there is still a lot in the legislative hopper to consider before year-end, or even before the November elections. Some of the tax proposals had a few provisions with retroactive effective dates to 2021, as time passes however, these dates are likely to be revised. Tax proposals not enacted in 2021, if enacted in 2022, are still likely to impact tax planning and returns in 2022/2023. Learn more about some of the proposed changes outlined below in this recently published 2022 Post-Filing Season Tax Briefing Update from Wolters Kluwer Tax & Accounting.
Why: Many of the tax proposals currently before Congress could impact tax planning this year and tax return preparation in 2023:
SECURE 2.0. SECURE 2.0 expands upon the retirement provisions in the original SECURE Act enacted near the end of 2019. A version has passed the House by a broad bipartisan majority, but its timing in the Senate remains uncertain, and changes are viewed as likely
SECURE Act RMD provisions. The IRS issued proposed regulations on the required minimum distribution provisions of the SECURE Act
Consolidate Appropriations Act. Congress enacted appropriations legislation; however, the legislation contained little in the way of tax provisions
Build Back Better. Efforts continue in Congress to keep all Democrats on board for a scaled-down version of the Build Back Better plan with a focus on some tax increases, some energy tax provisions, and some deficit reduction
Expired Tax Provisions. Many regularly expiring tax breaks expired at the end of 2021, as well as a number of COVID-related tax breaks that the Biden administration would like to extend to help low and middle income families
Schedules K-2 and K-3. The IRS has issued some transitional relief for domestic partnerships and S corporations required to commence reporting of international activities on new Schedules K-2 and K-3
Information Reporting. Taxpayers will need to continue to prepare for expanded Form 1099-K information reporting
IRS Backlog. The IRS continues to work to clear its COVID-related backlog of 2020 tax returns
Who: Have questions about the 2022 tax developments? Reach out to Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst, for Wolters Kluwer Tax & Accounting.
Contact: To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact Kelly De Castro.
PLEASE NOTE: These materials are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering tax advice or accounting, legal, tax or other professional service.
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KELLY DE CASTRO