Waypoints: Ideas and Insights to Navigate Enterprise Complexity

During the primetime of the 2017 10K filing season, the SEC issued additional guidance and expectations for cybersecurity disclosures. Cyber has been a hot topic for the SEC in the last several years. The financial impact to companies to prevent and then respond to a breach cannot be overstated.

The largest re-write of US tax law in over 30 years is now complete and subject only to the President’s signature. The details are voluminous and initial guidance should appear in the next few weeks. However, as most of these provisions are in effect starting 1/1/18, it is important now to understand the major changes at least at a high level so we can ask the right questions as we engage in end-of-the-year tax planning. Here's a look at some of the highlights in the new tax plan and how they'll affect you:

Over the last week, the pace of work in Congress on tax reform has picked up substantially. The House passed the “Tax Cuts and Jobs Act” last Thursday, and the Senate Finance Committee reported out their version of the bill that evening. After this week’s Thanksgiving recess, the full Senate will begin to consider their bill starting next week. Most, but not all, provisions would be effective in 2018.

The House Ways and Means Committee just released the details of their tax reform bill and will start hearings next week. The Senate Finance Committee will roll out their companion legislation in the next couple weeks.

Many of the provisions are similar to those of the joint framework released in late September. However, now we have more specifics, albeit with many gaps still remaining.

After fits and starts over the last nine months, a broad tax reform plan is now beginning to emerge between Congress and the White House.

Few things can match the excitement of the first day of business. For many people, it’s the realization of a career-long dream to be their own boss. Even for the serial entrepreneur who has been through the process multiple times, there’s still an adrenaline rush when the website goes live and/or the doors unlock and all of the planning and preparation comes together.

Last week, President Trump released an outline of his tax plan. Many of you have probably seen or heard a few different snippets from it. While it was written very broadly, it is instructive on the administration’s thinking. It follows the House Republican “Better Way” plan in some respects but also has some major differences. 

(Spoiler alert: Your favorite accounting and advisory firm is not about to write a blog post to announce that we’ll be replaced by technology.)

As a baby boomer, my accounting career has coincided with an exponential growth in the application of technology to the work that CPAs do. As a young staff auditor in the early 1980s, I recall lugging around “portable” computers that looked more like sewing machines than today’s ultralight laptops and tablets.

Since last year's election campaign began, a consistent chorus from politicians has been the need for tax reform. While Republicans and Democrats will disagree on the details, the overall notion is popular. Now, with control of both houses of Congress and the White House, it would seem that Republicans could move a plan of their choosing with little problem.

After one of the most memorable and acrimonious presidential campaigns in American history, Donald Trump stunned observers by defeating Hillary Clinton to be elected the 45^th President of the United States. Additionally, the Republican Party maintained control of both the House and the Senate.

This combination will give Mr. Trump and a Republican Congress a unique opportunity to shape many areas of policy, such as health care, regulatory reform, defense spending, immigration and more. However, near the top of that list will almost certainly be taxes. 

Recently, House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady released a blueprint for comprehensive tax reform. While these proposed changes are not authored by either presidential nominee, they will likely be an integral part of any tax reform taking place in 2017, assuming the Republicans maintain House control. The blueprint is a step towards tax law simplicity and is pro-growth, leading some to believe the Senate might take action on similar legislation as well. 

Tax policy is a critical element of any presidential campaign, and this year is no different. Presumptive nominees Donald Trump and Hillary Clinton have proposed very different tax law changes, and it is not too early to take a look at the highlights of these proposed plans. Keep in mind that regardless of the outcome, neither candidate will have all of his or her proposals enacted into legislation.

The two plans have some distinct differences that are worth a closer look. Highlights are as follows:

In the waning days of 2015, Santa stopped by the U.S. Capitol, loaded his sleigh with goodies and delivered them to taxpayers from coast-to-coast.