Tax Practice and Procedure Changes in the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act enacted far-reaching changes to taxation of corporations, individuals, and U.S. companies operating in foreign countries. Perhaps because of extensive revisions to tax procedure rules in the Protecting Americans From Tax Hikes (PATH) Act in 2015, the TCJA contains only minor revisions in this area. The TCJA’s reductions in tax rates for individuals and corporations, on the other hand, have a significant impact, not only to the computation of tax on taxable income but also to other provisions in the Internal Revenue Code. And despite claiming tax simplification as one purpose of the TCJA, Congress slipped in some additional reporting requirements. This article discusses the TCJA’s major revisions to tax practice and procedure rules.