Tax pros in U.S. are suddenly very popular

‘Overwhelmed with client requests’

WASHINGTON • Don’t feel bad if you don’t understand how the new tax bill will affect you. Chances are, your accountant doesn’t yet either.

From New York to Kentucky to Florida, accountants and tax lawyers are scanning the 1,000-page measure, fielding a swirl of questions from clients and swapping tips via email in their efforts to fully grasp the bill’s farreaching changes.

When the House and Senate released the final tax bill late last week, it gave many experts their first look at what will become a vast rewrite of tax law. Congress gave approval to the measure Wednesday, and President Donald Trump is to sign it early next month.

“The whole weekend I was overwhelmed with client requests on how this impacted them, and it hasn’t stopped, and probably won’t for several weeks,” said Gary DuBoff, an accountant at MBAF, a New York firm.

The uncertainties range widely.

Should some taxpayers try to reclassify their pay as business income, which is taxed at lower rates for top earners? Should small companies restructure as corporations to capitalize on a now-much lower corporate tax rate? Can people in hightax states rush to prepay their 2018 state and local income taxes this year to fully capitalize on the deduction for such payments, before it’s capped next year?

The answers are: Maybe, maybe and no, though taxpayers may be able to prepay their 2018 local property taxes this year.

“Every one of your clients is calling you, and they all want to know what the effect is,” says Joseph Perry, an accountant at Marcum, based in Melville, N.Y. “It’s like, ‘Wait, slow down — we have to figure this out.’”

Most accountants scoff at the notion, pushed by the bill’s proponents, that it has simplified the tax code. For higher-income earners in particular, as well as many small businesses, tax law remains at least as complex as ever. And the bill has injected a new layer of uncertainty because so many changes are temporary and could be reversed in a few years.

The need for clarity is welcome news for the professionals who need to sort it all out.

“It’s going to be good for business,” said George Smith, a third-generation accountant based in Southfield, Mich. “I’m a tax geek; I’m excited