The past year was relatively quiet in terms of tax changes, but the IRS remained active. A number of proposed and final regulations were issued that could significantly impact your tax planning strategies.
Many tax provisions frequently involved with last-minute "extender" legislation were made permanent with the Protecting Americans from Tax Hikes (PATH) Act, but not all of them. Some important provisions expired at the end of 2016, and others will gradually phase out over subsequent years. Additionally, family valuation discounts, common planning tools for family limited partnerships and LLCs, could see substantial changes in the coming years, as recently proposed regulations call for curbing the use of the discounts.
The new partnership audit rules also require attention. New partnership audit rules will generally require the assessment and collection of unpaid taxes attributable to partners at the partnership level. These rules will require changes to partnership agreements, including addressing how partnership tax deficiencies should be allocated among the partners.
Our 2017 Business Tax Planning Supplement recaps these and other major developments from the past year and provides rates, tables and other information for future planning. Highlights include:
- Permanent, temporary and expiring tax provisions
- Tax form due date changes
- Affordable Care Act implementation