By David Yasukochi
On Dec. 2, the Senate passed its version of proposed tax reform legislation, the “Tax Cuts and Jobs Act,” on a vote of 51-49. The House had previously passed its own tax bill on Nov. 16, 2017. Currently, both bills reside with a conference committee for reconciliation. This sets the stage for a possible enactment of a final bill before the New Year.
With each bill proposing slightly different provisions, it’s important that tech companies familiarize themselves with the proposals to understand how they may be impacted in the future. Should legislation pass, most provisions of both bills will be effective starting in 2018.
What’s at Stake for U.S. Tech?
The key highlights of the House and Senate tax bills, as well as their potential impact on tech companies, are summarized below.
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Many changes are still expected over the next several weeks, as the House and Senate bills undergo reconciliation by the conference committee. Based on the magnitude of the changes proposed thus far, if a final bill is signed before the end of the calendar year as targeted by President Trump, the changes will require significant reassessments of tax positions for financial reporting purposes to be reported in the quarter. U.S. tech companies would be wise to keep abreast of the latest developments to avoid the risk of being unprepared.
This article originally appeared in BDO USA, LLP’s “BDO Knows Alert” (December 2017). Copyright © 2017 BDO USA, LLP. All rights reserved. www.bdo.com
David Yasukochi is a Tax Office managing partner and co-leader of BDO’s Technology practice. He can be reached via phone at 714-913-2597 or email at firstname.lastname@example.org.
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