While simplification may have been touted as one of the primary drivers of U.S. tax reform during the past two years or so, the final legislation has made it clear that tax calculations and filings will be more complex for many—businesses and individuals alike—keeping tax accountants and attorneys very busy for a long time.
Although it remains to be seen just how businesses will be impacted, here are four initial thoughts we know to be true:
- The repatriation rules will drive the need for significant calculations.
- The new law has a global impact and vocal opponents.
- The impact of this legislation will endure for years – and (possibly) the partisan nature of its passage could result in future tax reform sooner than we might expect.
- Tax professionals handling the tax provision for the financial statements face a not-so-merry holiday season – and beyond.
President Trump may have signed the Tax Cuts and Jobs Act into law, but tax reform is far from over. Check back in January for a more detailed look at this historical tax reform and how businesses the world over will be impacted.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.