American Taxpayer Relief Act of 2012
American Taxpayer Relief Act of 2012: Implications for Financial and Estate Planning
Following lengthy negotiations and a last minute scramble on Capitol Hill, Congress reached a “fiscal cliff” compromise and passed the American Taxpayer Relief Act of 2012. This Act extends the vast majority of tax cuts that were scheduled to expire at the end of 2012, along with retroactively extending some provisions that expired in 2011. Unfortunately, this legislation does not address either the national debt ceiling or the mandatory spending cuts imposed by the Budget Control Act of 2011. Therefore, even though many of the changes outlined in the Act are “permanent” and do not automatically sunset, the tax landscape could change significantly again in the next few months.