jainen Posted August 20, 2013 Report Share Posted August 20, 2013 Last week there was some discussion in the Politics Forum about whether the automatic spending cuts had any real economic impact. I'm raising the issue here strictly in terms of non-partisan tax effects. What do you think about the IRS saying the sequester requires them to reduce refunds? The IRS explains, "A corporation that can claim an additional first-year depreciation deduction under section 168(k) can choose instead to accelerate the use of its prior year minimum tax credits, treating the accelerated credits as refundable credits." In other words, by investing in new equipment they can use up otherwise-deferred credits, and even get a refund. Now, solely because of the sequester cuts, the refundable portion will be reduced 38%. http://www.irs.gov/Businesses/Effect-of-Sequestration-on-the-Alternative-Minimum-Tax-Credit-for-Corporations Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted August 20, 2013 Report Share Posted August 20, 2013 Just one more little hidden tax increase. Note that the 38% of the refund is 'reduced', not 'delayed' or 'suspended'. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.