The Tax Cuts and Jobs Act – Phase II
It has been over four months since Congress passed, and the President signed, the Tax Cuts and Jobs Act (TCJA). While welcomed by many, it has been criticized by others. It is clear, however, that the TCJA brought the most comprehensive changes to federal tax law in over 30 years. The new rules affect nearly every type of income tax reporting entity (business and individual, taxable and tax-exempt).
Shortly after enactment, Schneider Downs Tax Advisors published our Tax Reform Guide (available here for download) to introduce many of the most significant provisions of the new law. Since enactment, tax professionals have been pouring through the law and committee reports, gleaning meaning from the law as written as well as from the limited amount of additional guidance published by the Internal Revenue Service since December 22, 2017. However, as we have noted in a number of articles, the law was written and passed quickly. As a result, there are technical corrections to the law that are required (but no firm Congressional timetable for making those corrections), and additional guidance is needed from the Treasury and IRS that has been promised beginning as early as June. Further, the Internal Revenue Service has issued a number of notices expressing disapproval of planning ideas that it ostensibly believes does not meet the spirit of the law that Congress intended.
Over the next few months, we will be exploring various aspects of the TCJA in more detail. Compliance issues and traps will be identified and potential planning opportunities will be introduced. These articles will not comprise an in-depth analysis of the provisions. Rather, they are intended to generate questions and discussions. We invite you to continue to review this material and to reach out to Schneider Downs as we continue to monitor guidance and develop ideas for optimizing the benefits contained within the law. Our professionals are well versed in the TCJA’s many details; and we welcome the opportunity to speak with you about the opportunities for you and your organization.