Income Tax Service

Terry Hough

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November 12, 2012 Newsletter

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What's New for 2012

While campaigning for most of 2012, the Obama Administration and the current Congress have largely ignored any real work on tax changes.

We are faced with a hodge-podge of expiring items, items that require statutory change by Congress, and lots of devastating implications as a result of their inaction.

I can almost guaranteed that you will be affected by one of more of these items when you file your 2012 tax return UNLESS the Congress acts quickly. You will be hearing about many of these on the news right up til the Christmas break.

Here is the current 2012 status: Click on this link 2012 Tax Law Changes Newsletter Addendum for full details.

It is absolutely imperative that Congress take action to adjust the Alternative Minimum Tax brackets. This action is required annually, and they just let it slide again until the last minute. (See the paragraph about the AMT in the addendum linked above). About three years ago they did the same thing and it actually delayed filing of certain returns for nearly 2 months.

Now, none of the items in the addendum refer to the current "fiscal cliff" issues the media is quoting our leaders on. Those items don't come into effect until 2013 or beyond. They are even more potentially devastating to you and your finances.

All information provided is general in nature and intended to create awareness, not to address the specific circumstances or concerns of any individual or entity. Although we try to provide correct and timely information, we cannot guarantee the accuracy of any information or that such information will continue to be accurate in the future due to the changing nature of the tax laws. Before acting on any of the information provided here, you should consult with a professional advisor who knows all of the unique facts and circumstances pertinent to your particular situation.