Several significant tax provisions are set to expire or change, creating urgency for individuals and businesses to review their tax positions. The expiration of 2017 Tax Cuts and Jobs Act individual provisions at the end of 2025 has been extended by one year but remains subject to congressional negotiation. Estate tax exemption levels, currently among the highest in US history, are expected to be significantly reduced, prompting acceleration of estate planning activity.
Tax professionals report that Roth conversion strategies are particularly popular among high-income clients who expect marginal rates to rise in coming years. Small businesses are evaluating the relative merits of different entity structures given uncertainty about pass-through deduction rules. International tax compliance has become more complex following additional FATCA and FBAR reporting requirements that affect Americans living or investing abroad.
