As media reports of an impending fiscal cliff mount daily, CPAs are already preparing clients for the impact of tax benefits expiring at year end. Meanwhile, political reporters are debating the pros and cons of various fixes being discussed.
Extending current tax rates three or six months would buy Congress more time to settle their partisan differences. However, it would leave the IRS a slew of difficult administrative issues that would not be easy to solve, according to The Hill.
Meanwhile, CPAs, small businesses and individuals would be left to wade through a year of piecemeal tax policy. A better solution would be extending tax rates for a full year. Considering the political pressure both sides have applied to the issue, such a lengthy extension ups the ante.
Read more from The Hill.