02/02/2024
As millions of Americans prepare to file their tax returns, Congress took the opportunity to revise the rules – for last year. Yes – in late January of 2024, the same week that IRS opened the efile system for 2023 tax returns the House passed a bill that would impact almost everyone in some way. If you have young children, own a rental house, or own a small business, amongst other things, this bill WILL impact your tax return. In many cases, the impact will be in your favor and maybe that’s great – but – is it really responsible leadership to make these changes NOW? At the time when we’re supposed to be completing last year’s work?
To make it worse – we’re being told that the Senate won’t even take up this bill for consideration until March. This means that perhaps just before the due date, the President would be given a bill to sign into law.
Are parents supposed to just wait for their oftentimes, much anticipated child tax credit refunds? Should business owners just plan to file amended returns if more favorable depreciation rules are passed? Or should we just extend EVERYBODY’s return – or maybe just plan to amend everyone’s return?
None of these are good answers. The same Congress holding the distinction of having passed the least amount of legislation in recent memory has decided to just flip the table over on tax season in the name of ‘helping’ taxpayers. In my opinion, it’s irresponsible leadership at best and legislative grandstanding at worst. Tax season has already become difficult enough due to the past few years of legislation without creating this level of uncertainty in the mix. I’m already seeing many regional firms just state that they are as of now holding all filings pending the legislative change.
Taxpayers deserve to make decisions in real time with certainty as to the legal and tax consequences of those decisions. Retroactive legislation robs them of that right and removes a level of equity from tax policy administration. We deserve better from our leaders.
