How the Tax Cuts and Jobs Act is Increasing the Need for Specialized Tax Professionals
In late 2017, the Tax Cuts and Jobs Act (TCJA) significantly changed the landscape of U.S. personal, business, and international taxation. But the number of last-minute additions, deletions, and other amendments to this law left many business owners and individual taxpayers scratching their heads, unsure about whether (and how) these reforms would help them.
A recent CFO survey revealed that nearly 7 in 10 businesses were only "somewhat" or "not at all" prepared for the changes the TCJA will bring. As a result, more companies than ever are seeking out seasoned tax professionals to provide guidance on these changes. Read on to learn more about how the TCJA is increasing the need for specialized tax professionals.
Corporate Structure Matters More than Ever
The TCJA introduced a new 20 percent deduction for certain pass-through businesses like S corps, LLCs, and partnerships. It also significantly changed the way other corporations can deduct capital assets. As a result, many corporate structures may no longer make fiscal sense for owners and shareholders, who must seek out advice on altering their structure to maximize profitability in today's market.
Not All Changes are Permanent
Some of the TCJA's changes, like the doubling of the lifetime gift exemption, are set to revert to prior rates within a decade. Businesses and individual taxpayers may need to seek out long-term planning advice sooner, rather than later, to take advantage of these changes before they expire.
Subject Matter Experts Add Value
Many companies have already begun to add to their accounting staff. Existing staff may be well-equipped to handle the typical tax season tasks, but don't always have the time or expertise to deal with long-term forecasting. Subject matter experts are now in the unique and sometimes enviable position of being able to provide much-needed advice for a set consulting fee.