The tax reform bill that’s due for a vote this week in Congress will leave lots of tax loopholes for taxpayers and tax practitioners to strategize around for years to come.
The hastily drafted bill contains arcane provisions about the tax rates for pass-through businesses and multinational corporations. While it eliminates a host of deductions, many are still preserved and have new complications.
“Companies will need to move quickly to respond to the vast changes expected in the Tax Code and the layers of new rules that will become effective at different times,” said Jeffrey C. LeSage, Americas vice chairman-tax at KPMG LLP. “Of particular importance, if the bill is enacted before year-end, calendar-year companies will need to reflect it in fourth quarter and year-end financial statements.”