What Is The PATH Act?
Do you know about a recent law passed called the Protecting Americans from Tax Hikes, or (PATH) Act. Passed in late 2015, the law contains more than 100 tax provisions, many of which go into effect this year. Most Americans are affected by the PATH Act in some capacity. The 233-page bill includes over $620 billion in tax reductions for families and businesses in America.
Why Was It Enacted?
The new, expansive law affords taxpayers the opportunity to utilize some common tax breaks. It also permanently extends many tax benefits, taking millions of taxpayers out of the repeating cycle of uncertainty of tax benefits – and opening the door for more accurate and useful tax planning.
What Does It Encompass?
Some of the important provisions of the PATH Act cover:
- Permanent extensions of many tax benefits,
- Tax relief for families and individuals,
- New renewal requirements for Individual Taxpayer Identification Numbers (ITINs),
- Incentives for charitable giving, industry, investment, innovation, energy production, conservation, and small businesses.
- Compliance provisions, one of which will delay millions of refunds until February 15.
Stay tuned in future weeks for the following information on the PATH Act on Block Advisors Insights.