E-Alert
December 1, 2010
Pressing Tax Issues Deferred Until December
Congress has departed for its Thanksgiving recess without resolving pressing tax issues including the extension of the Bush tax cuts, resolution of the estate tax problem, the alternative minimum tax (AMT) and extenders (i.e., deciding whether to retroactively extend some or all of the tax provisions that expired at the end of 2009 - including the research credit). What is even more frustrating is it looks as if the lame-duck Congress may not resolve these issues until the very last minute, i.e., right before Christmas. On November 18, Senate Finance Chair Max Baucus (D-MT) told members of the press to "get your snow boots on."
The thorniest issue is the expiring Bush-era tax cuts. The Democrats (and the Administration) want to extend the tax cuts for "non-high-income" taxpayers only. The Republicans want to extend the tax cuts for everyone. The problem is that neither party has the votes to prevail. That inevitably will lead to a compromise of some sort. One possibility is an across-the-board, but temporary, extension of the Bush-era tax cuts for individuals.
We will keep you apprised of any new tax legislation.
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If you have any questions regarding the information in this article, or have any other issues you would like to discuss, please feel free to contact the DZH Phillips tax department at 415.781.2500 or email cpas@dzhphillips.com.
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