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Across the country, many tax departments are wrapping up what may have been one of the most challenging compliance seasons the industry has faced. While state tax calculations always have presented highly complex issues, this year also included process-driven challenges, including state signature and return filing requirements.
As tax professionals start to look toward year-end, attention should be given to the uncertainties around the elections both at the federal and state levels. Understanding the possible tax impacts is necessary to be able to quickly act before the end of 2020 should changes appear necessary. The first article below highlights key tax proposals of President Donald Trump and Democratic Nominee Joe Biden that could affect the asset and wealth management industry and summarizes certain state ballot initiatives.
In addition to analyzing the tax impacts of the upcoming elections, companies also must prepare for the new federal reporting requirement of partner tax capital on the 2020 federal K-1s. As state tax practitioners are aware, changes to the calculation or reporting requirements at the federal level can reverberate throughout the states. Our second article analyzes the state complexities that may result from basis reporting at the state level, if required.
Election years always present the possibility for change at the federal and state levels. This year will be no different. PwC will be tracking the election results and analyzing the tax impact.
SALT Asset and Wealth Management Leader
Partner, PwC US