RIVERWOODS, Ill., Dec. 15, 2011 /PRNewswire/ --2011 brought many significant tax developments, despite the fact that it was supposed to be a quiet year, following major tax legislation in 2010 and expected tax reform in 2012. CCH has issued a new Tax Briefing that examines the changes the year brought, driven by the Administration, Congress, the Treasury Department, the IRS and the courts. CCH, a Wolters Kluwer business is a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com).
President Obama signed bills enacting hiring incentives, repealing three-percent government withholding and more. Congress initiated a national conversation on the pros and cons of tax increases, tax reform and deficit reduction, which will frame tax proposals for 2012 and beyond. The IRS issued a steady stream of much-needed guidance for businesses and individuals, ratcheted up its attention on tax compliance, particularly in the international area and continued its multi-prong initiative on return preparer oversight. Meanwhile, the Tax Court and other federal courts handed down decisions of their own, impacting rules for many other taxpayers.
"One common theme during 2011 for practitioners and taxpayers was the lack of certainty in tax planning for future years," said CCH Principal Tax Analyst, Mark Luscombe, JD, CPA. "And that uncertainty was magnified by the scheduled expiration of many tax incentives after December 31, 2011, and the end of the Bush-era tax cuts after 2012, due to extension by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010."
Over the course of 2011, it became clear that blockbuster tax legislation would essentially remain in a holding pattern until the 2012 presidential elections. "Must-do" tax laws, such as the extension of the payroll tax cut and other temporary "tax extenders," would be considered, as was "single issue" legislation to cure unpopular provisions such as expanded business payment information reporting, three-percent withholding on government payments to contractors, or patents on tax strategies.
Although 2011 was a surprisingly busy tax year, many open issues and questions remain.
"The failure of the Joint Select Committee to reach an agreement left unanswered the fate of the Bush-era tax cuts, tax extenders and other expiring provisions, as well as any hope of tax reform being put on a fast track," said Luscombe. "The Bush-era tax cuts, it appears, will be left for Congress to address after the 2012 elections."
And while taxpayers and tax practitioners must grapple with some uncertainty for now, one thing they can be sure of is that 2012 promises to be an even bigger year for tax changes.
For More Information
To access the CCH Tax Briefing, please click here or visit CCHGroup.com/Legislation to access the full range of CCH Special Briefings on significant tax developments.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading global provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are The ProSystem fx® Suite, CorpSystem®, CCH® IntelliConnect®, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Follow us now on Twitter @CCHMediaHelp. Wolters Kluwer (www.wolterskluwer.com) is a market-leading global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
SOURCE CCH, a Wolters Kluwer business
