Sudden federal tax reform’s big impact will come slowly
IRS must write the rules before accountants and attorneys can answer Kentucky business’s questions
Rate cuts and incentive shifts in the new federal Tax Cuts and Jobs Act will keep Kentucky tax lawyers and accountants busy for years helping clients make the most of lower levies and an altered inducement landscape. The reforms will result in business structure changes for many – but not yet. Internal Revenue Service staff must write the implementing rules first, and that will take months.
“I think at this point they (business owners) have a lot of questions. Everybody’s happy that the rates have dropped,” said Rachael High Chamberlain, an attorney who handles state and local tax work for Frost Brown Todd in its Lexington office. “But there are so many other factors that come into play for a company deciding what their overall tax burden is; they might have one provision in the tax bill that is absolutely amazing for them, and then you flip over to a different aspect of their tax compliance and there’s something else in the bill that’s really bad.
To read the full article, click here.