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Wednesday, January 30, 2013

What 'Permanent' Means When Talking Tax

One aspect of The American Taxpayer Relief Act of 2012, signed by President Obama on October 3, 2013, is the frequency that specific items were made 'permanent.' While being 'permanent' is better than 'temporary' or 'sunsetting' as it relates to tax planning, what 'permanent' means is .... this is the rule until Congress changes it. Congress can, and often does, change any tax rule anytime it can agree. Also, the IRS itself can change how a rule is interpreted by the issuance of Publications and Rulings. Consequently 'permanent' changes frequently.

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