President Trump Does 2 Things Before Taking a Holiday Break

The pre-holiday crunch is often a busy time. This holds true for everyone that works at any level of employment. Retail, clerical, legal, financial, medical, or politics. In fact, this truth holds even for the person who holds the highest office in the country.

President Donald Trump felt the crunch and encouraged Congress to get a tax bill to his desk so that it could go into effect before the end of the year. Congress delivered, and so did the president. President Trump signed the tax bill into law earlier today.

The law is set to cut corporate tax rates from a current rate of 35 percent to 21 percent. However, this is only one of the things the president was pushed to complete prior to his holiday break.

The second involves the money used to fund the government. A budget for government operations was scheduled for completion. A failure to pass the budget could have translated into a government shutdown. Although a budget was not passed, the president agreed to extend the deadline to January 19. This was achieved with a short-term spending bill.

What does this reform mean for taxpayers? Taxpayers throughout the country will be impacted in various ways by this bill. The details of the impact will depend on each individual or business unique situation. It will also translate to the need to apply new tax rules to tax filings.

Confusion will likely be present on how to apply these new rules and could potentially fuel an increase in audits by the Internal Revenue Service (IRS) in the future. An audit by this federal agency is serious and can lead to criminal and civil penalties. These allegations can be fought. Anyone that is contacted by the IRS about an audit is wise to seek legal counsel.

Tags: Blog, IRS