As the New Year arrived, Congress struck a last-minute budget deal that avoided the so-called "fiscal cliff" scenario. The bill creates a new high-end tax bracket and extends the Bush-era tax cuts for all other brackets while extending the alternative minimum tax (AMT).
What does this mean for your clients? The U.S. Internal Revenue Service (IRS) has already announced that tax season will be delayed a week. The payroll tax holiday enacted in the 2009 stimulus bill was not renewed, bumping workers' share of Social Security taxes to 6.2 percent. And of course, many issues will be revisited at the next deadline in February or March.
How are you advising your clients?