Thread by @SmithMatthewC

As much of a relief as it is to have this nightmare filing season behind us, I don't think workload wise it's going to get much better just on its own. A few reasons why:

1 - The ERC. This shitshow of a credit will haunt us next year for a variety of reasons.

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2 - Residual from PPP. Those that didn't run it through in 2020 now will. Those that did will likely need to account for forgiven interest.

3 - EIDL issues. Payments will start kicking in. Enforcement will likely tick up. At-Risk nightmares continue to plague taxpayers.

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4 - EIP 3 drama. The ridiculous 8/15 date will trigger lots of consternation amongst clients that would have qualified for 2020, didn't get processed in time, and don't qualify for 2021.

5 - TCJA. Seems odd, but COVID put a bit of pause on the evolution of TCJA stuff.

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6 - State PTE SALT cap workarounds. Speaking of shitshows, these nightmares are continuing to spawn across the country.

7 - BBB legislation. Prediction: It will not Build Back Better the tax code. Get ready for a buffet of stupid tax credits. Yay, tax credit questions!

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If you've read this far, you're probably thinking: "Wow, lots of negativity and bullet points for a Saturday morning post-deadline." So I'll pivot to some more positive thoughts (the bullet points stay):

1 - We now have time to account for the above w/ clear eyes. (Take it!)

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2 - Many of the tax law issues can be resolved. For example:

a - Fix ERC timing to cash recipient basis. No brainer.
b - Close the SALT workaround loophole by extending 164(b)(6) to PTEs/repealing cap/universal nondeducibility (for income taxes).

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c - Consider qualified nonrecourse treatment for EIDLs. Not sure justified, but a solution.
d - Push the 8/15 date back to 12/31 and give everyone their $1,400 if they qualified for it on 2020 income.

3 - Hey, we have time to rest maybe a little?

Happy 10/16 #TaxTwitter

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