AICPA Offers Insight Into Fiscal Cliff Discussions

Looking for an understandable guide to tax provisions at the center of the debate over the looming fiscal cliff? TheAmerican Institute of CPAs (AICPA) has developed a “Fiscal Cliff Series” that provides fact sheets on the following tax topics:

• Alternative Minimum Tax 
• Individual Income Tax Rates
• Estate Tax
• “Extenders”
• Long-Term Capital Gains and Qualified Dividends
• Social Security Payroll Tax Reduction

According to the organization, each fact sheet describes the tax provision in question, explains what will happen if we go off the fiscal cliff, identifies who will be affected by the cliff, discusses whether the provision can be dealt with after Jan. 1, and provides AICPA commentary and additional resources.

The fiscal cliff refers to the predicted reduction in the budget deficit and a corresponding slowdown of the economy if specific laws are allowed to automatically expire or go into effect at the beginning of 2013. The laws include tax increases due to the expiration of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the spending reductions (sequestrations) under the Budget Control Act of 2011.

Source: AICPA press release