Ideas & Insights

2015-2016 Tax Guide

Be ready to revise your individual or business tax plan quickly in 2015

When it comes to tax law, “uncertain” remains the watchword. Given therecent shift in power in Congress and the fact that the President is now in his last two years of office, there’s much talk of comprehensive, long-term tax reform — and speculation about its likelihood.

Then there are the tax “extenders.” Last December, in a dramatic rush to beat the
clock, the Tax Increase Prevention Act of 2014 was signed into law. This measure
retroactively extended a variety of tax relief provisions that had expired at the end of 2013, including some valuable breaks for businesses. Unfortunately, the extensions were generally only through Dec. 31, 2014. Congress must take further action to revive the extenders for 2015 — or to make them permanent, perhaps as part of tax reform legislation.

Regardless of when — or if — either of those scenarios becomes reality, tax
planning this year will be challenging for both individuals and businesses. It’s
possible we could reach the end of 2015 before knowing whether there will be
comprehensive tax reform or the extender provisions will apply for the 2015 tax
year. So be ready to revise your tax plan quickly. The more you know about the
areas subject to change and possible tax-reduction strategies, the easier it will
be to take action should the need arise.

This guide covers many of the tax issues individual and business taxpayers will
encounter in 2015. However, there isn’t space to cover every possible tax-savings
strategy here. So please contact your tax advisor to learn about specific strategies
to address your situation.