Year-end planning may be a significant challenge for some
taxpayers this year because, unless Congress acts, many of the
benefits to taxpayers that were established under the Bush
administration in 2003 and extended under the Obama administration
in 2010, will expire. Unless those rules are extended, tax rates
increase on January 1, 2013, the alternative minimum tax (AMT) will
impact more taxpayers, various deductions and other tax breaks
expire, the estate tax exemption will be reduced and the estate tax
rates will increase as a result of the expiring Bush-era tax
cuts.
Although Congress could extend these tax cuts for some or all
taxpayers, retroactively "patch" the AMT to increase
exemptions and availability of credits, revive some favorable tax
rules that have expired, and extend those that are slated to expire
at the end of this year, which actions, if any, Congress will take
remains to be seen. However, even if Congress does act, it is
unlikely to extend all of
