With tax season approaching, there are many speculations among accountants and CPAs. IRS made few big changes last year, which changed business dynamics for small businesses. Important points included increased rates for middle class and implementation of strict policies and norms for accountants and CPAs.
The infographic below explains some of the observations and predictions for tax season 2015.
- This tax season is likely to impact the middle and lower taxpayers.
- Tax extender which lasted for 12 days created some uneasiness among taxpayers. This can also have an impact in tax season 2015.
- The increment rates during the last tax season were high but the tax on regular income increased to 39.9% and 20% for capital gains. This tax season may also witness steep increase.
- Taxpayers that are not covered by employer insurance plans or medical policies are expected to get affected by the specifications made in Affordable Care Act.
- IRS would want to provide taxpayers with sufficient practice methods so that it is easy for them to file returns. Registering them before and providing PTIN should come in handy.
- Accountants and CPAs would be superstitious if they would benefit or not while preparing reports for taxpayers with lower income. Strict rules of the IRS for taxpayers conclude it.
- IRS should assist practitioners and reply to their questions during tax season. Most of the times, CPA are held back by the unresponsiveness of the IRS.
- If there is any doubt among taxpayers about filing returns, they should move to the tax representative of the state or take help of taxpayer advocate.
- During the tax season, FATCA will be more active and be in contact with the taxpayers who never admitted that they have foreign accounts.
- Preparing tax reports for those having foreign investments is not easy and CPA or accountants may drop the idea and instead file CYA statements to the IRS.