Scottsdale, AZ (Oct 20th, 2010). Tax expert Sam Kerch, of Symmetry Software had some interesting insight on the matter of congressional budget decisions (or indecisions, as the case may be) in his recently published AskCPASam blog article. Below is just a portion of this blog:
"Working in the payroll software industry during the day has certainly opened my eyes to problems created by our federal elected officials. Under normal circumstances, Congress decides on a budget for the next year with significant lead time for the president to sign the legislation and the Treasury department (IRS) to issue tax tables based upon that law. Tax tables, if issued in early November, can be coded, tested and released by software companies well in advance of the next tax year. Once software companies release these tables, payroll and accounting software providers must update their customers with the new calculations after performing tests of their own. This entire process can take up to a month.
Now, mix in this year's congressional indecision. The federal government's budget has still not been finalized as of the writing of this post. Many analysts and representatives are saying nothing will happen until the "lame duck" session following the election in November. With no tax law available for writing next year's tax tables, there can be no software coding and testing at the tax table software level or the payroll software provider level. To add even more complexity to the situation, how is anyone supposed to plan for their tax liability with no rules in place to determine how much liability will exist? Should we withhold on an unpatched AMT, reduced child tax credits, Making Work Pay credit? Please Congress, let's get this resolved."
Want to read more? To find the original blog article in its entirety, click AskCPASam.
About Symmetry Software
Founded in 1984, Symmetry Software is a groundbreaking innovator in tax applications for the internet and corporate intranets. At its core, Symmetry is a software development firm with a high level of expertise in payroll withholding taxes. Our team of software engineers and taxation experts provide leading edge, regulatory compliant payroll software products. For more information please visit us at www.symmetry.com.