WASHINGTON--(American Institute of CPAs has developed a “Fiscal Cliff Series” that provides a brief, objective and non-partisan fact sheet on each of the following tax topics:)--Are you looking for an understandable guide to tax provisions that are at the center of the debate over the looming fiscal cliff? The
- Alternative Minimum Tax
- Individual Income Tax Rates
- Estate Tax
- Long-Term Capital Gains and Qualified Dividends
- Social Security Payroll Tax Reduction
Each fact sheet describes the tax provision in question, explains what will happen if we go off the fiscal cliff, identifies who will be affected by the cliff, discusses whether the provision can be dealt with after January 1, and provides an AICPA comment and additional resources.
The fiscal cliff refers to the predicted reduction in the budget deficit and a corresponding slowdown of the economy if specific laws are allowed to automatically expire or go into effect at the beginning of 2013. The laws include tax increases due to the expiration of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the spending reductions (sequestrations) under the Budget Control Act of 2011.
Edward S. Karl, CPA, AICPA’s vice president for taxation, is available for interviews, or to provide background, on fiscal cliff issues and implications.
The AICPA is a longtime advocate for sound tax policy, tax simplification and taxpayer education. In recognition of the importance of helping individuals understand their tax obligation and how it impacts their financial decisions, the Institute’s Total Tax Insights™ calculator is an easy-to-use tool that offers a clearer picture of the types of taxes individuals pay and their estimated amounts.
About the AICPA
The American Institute of Certified Public Accountants (AICPA) is the world’s largest member association representing the accounting profession, with nearly 386,000 members in 128 countries and a 125-year heritage of serving the public interest. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.
The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination and offers specialty credentials for CPAs who concentrate on personal financial planning; fraud and forensics; business valuation; and information technology. Through a joint venture with the Chartered Institute of Management Accountants (CIMA), it has established the Chartered Global Management Accountant (CGMA) designation to elevate management accounting globally.
The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ. Media representatives are invited to visit the AICPA Press Center at aicpa.org/press.