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Expiration and change dates of various tax provisions may increase focus on tax policy


Several tax provisions are scheduled to sunset or change over the next few years, which may be a focus in an election year.

 

Several tax provisions enacted as part of the Tax Cuts and Jobs Act were enacted with “sunset” and change dates, some of which have already taken effect. Other provisions, commonly known as “tax extenders” have typically been extended for just a few years at a time, leading oftentimes to their inclusion in year-end bills. Many of these tax extenders, however, were allowed to expire in 2021. While there’s been talk of addressing some of these provisions, such as IRC Section 174 R&D expensing, there has been no consensus to date.  A House-passed bill (H.R. 7024) addressing several pending tax issues has languished in the Senate due to multiple stated reasons from Republicans.


As these provisions are far-reaching and will impact a wide range of taxpayers, it is possible they will appear in year-end legislation, making the issue one to monitor.


Summary

As these provisions could be included in forthcoming legislation, affected taxpayers should monitor developments.

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