Midyear 2011
Dear Clients and Friends,
Instead of tackling the hard issues of tax reform, entitlements, and the staggering federal debt, politicians in Washington settled for a lot of talk and less action in 2010. It's no surprise that the problems are still with us, and because we're coming up to an election year in 2012, it's unlikely that anything will be resolved until after the election.
The Tax Relief Act of 2010 did bring some tax relief in the form of a 2% reduction in social security taxes. This one-year tax cut will reduce 2011 taxes by an estimated $100 billion. Other provisions in the 2010 law will expire at the end of 2012, and the general expectation is that taxes will then increase, if not for everyone, at least for those with incomes in and above the $250,000 range.
The tax code is long and complicated. According to Nina Olson, the national taxpayer advocate, there have been 4,428 changes to the tax code over the past ten years. That's more than one change per day. It can be difficult to keep up with the tax rules and tax-cutting options. This Letter is our way of reminding you that it's time to put your 2011 tax planning into high gear, or you may find yourself paying higher taxes than necessary. Please contact our office if you would like to do a midyear tax review to minimize your taxes for 2011 and beyond.