The 2021 tax landscape was filled with headlines about new, possible, and pending legislation. When the year ended, taxpayers were left with many questions about what taxes would look like in 2022. For now, the Build Back Better Act is on hold, and many provisions of the Tax Cuts and Jobs Act of 2017 expired, including some that may be extended retroactively. The following article lists some of the more far-reaching of these provisions, but keep in mind that it is not a definitive list.
New and expiring provisions and other rules
Congress did not pass any tax extenders at the end of 2021. As a result, some changes that were enacted by the TCJA expired Dec. 31, 2021. While Congress may act to extend them retroactively, as of now, businesses need to consider the following:
Provisions of the current version of the Build Back Better Act to consider
The BBB is still being stalled by Congress, but the version passed by the House on Nov. 19, 2021, contains a number of tax provisions. While the specifics may change, it seems likely that the following areas will be affected if and when the bill becomes law:
As of the present time, the BBB will not only eliminate this strategy for all taxpayers, but it will institute withdrawal requirements for taxpayers with balances of $10 million or more across their defined contribution retirement accounts as well. Further withdrawal requirements would be established for taxpayers with combined balances of over $20 million.
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