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Tax Law Changes: What You Need to Be Aware Of

Tax law changes can be confusing and overwhelming. With the ever-changing landscape of the tax code, it’s important to stay up to date on the latest changes. Whether you’re a business owner, an individual taxpayer, or a tax professional, understanding the latest tax law changes is essential to ensure you’re in compliance with the law.

The most recent tax law changes were enacted in 2017 with the passage of the Tax Cuts and Jobs Act (TCJA). This sweeping legislation made significant changes to the tax code, including reducing the corporate tax rate, increasing the standard deduction, and eliminating certain deductions. It also made changes to individual tax rates, the child tax credit, and the estate tax.

In addition to the TCJA, there have been other changes to the tax code in recent years. For example, the Taxpayer First Act of 2019 made changes to the IRS’s customer service operations, including providing taxpayers with more options for resolving disputes with the IRS. The CARES Act of 2020 provided economic relief to individuals and businesses affected by the COVID-19 pandemic, including providing stimulus payments and expanding unemployment benefits.

For business owners, it’s important to be aware of the changes to the tax code that affect your business. For example, the TCJA made changes to the depreciation rules for business assets, which can have a significant impact on your business’s tax liability. Additionally, the CARES Act provided tax relief for businesses affected by the pandemic, including the ability to defer payroll taxes and access to emergency loans.

Individual taxpayers should also be aware of the changes to the tax code that affect them. For example, the TCJA increased the standard deduction and eliminated certain deductions, such as the personal exemption. Additionally, the CARES Act provided stimulus payments to individuals and expanded unemployment benefits.

Tax professionals should also stay up to date on the latest tax law changes. The TCJA and the CARES Act both made significant changes to the tax code, and tax professionals need to be aware of these changes in order to properly advise their clients. Additionally, tax professionals should be aware of any changes to the IRS’s customer service operations, as outlined in the Taxpayer First Act.

Tax law changes can be confusing and overwhelming, but it’s important to stay up to date on the latest changes. Whether you’re a business owner, an individual taxpayer, or a tax professional, understanding the latest tax law changes is essential to ensure you’re in compliance with the law.

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