MEDIA ALERT: Whether You Filed a Tax Return for 2018 or Have an Extension, Your Tax Issues for 2018 May Not Be Over

Wolters Kluwer Takes a Look at Remaining Outstanding Issues for 2018
Tax Returns

NEW YORK–(BUSINESS WIRE)–April 15 has come and gone. Taxpayers hopefully have either filed their
returns, requested a filing extension, or are entitled to an extension
without requesting one. Some taxpayers, such as those overseas, military
personnel in a combat zone, or persons in designated disaster areas, may
have an automatic extension to file without the need for a request.

However, a number of outstanding issues could still have an impact on
2018 tax returns. Some taxpayers filing for an extension may have been
intentionally waiting for some of those issues to be resolved. Taxpayers
who have already filed may have to consider filing an amended return if
they are impacted by continuing changes that retroactively apply to 2018
tax returns.

“Even if you have already filed your tax return, it is a good idea to
stay alert for additional changes impacting 2018 tax returns,” said Mark
Luscombe, JD, LLM, CPA and Principal Federal Tax Analyst for Wolters
Kluwer Tax & Accounting. “Your tax professional can be a big help in
alerting you to these additional changes as they occur throughout the

Possible changes to watch for that could still impact 2018 tax returns

  • Expired Tax Provisions
    Nearly 30 tax provisions expired
    at the end of 2017 and have not yet been renewed for 2018. Congress is
    still considering legislation to renew them retroactively for 2018.
    They include:

    • Above-the-line deduction for tuition and fees
    • Mortgage insurance premium deduction
    • Exclusion for forgiveness of qualified residence indebtedness
    • Nonbusiness energy property credit
    • New qualified fuel cell motor vehicle credit
    • 2-Wheeled plug-in electric vehicle credit
    • Additional business energy credits
    • Tax credits focused on specific industries or areas
    • Excise tax credits
  • Technical Corrections
    A number of errors were made in
    drafting the Tax Cuts and Jobs Act, most of the provisions of which
    were effective for 2018 tax returns. Congress is still working on
    enacting those technical corrections. Some are relatively minor, but a
    few have a potential significant impact on taxpayers. A couple getting
    the most attention are:

    • Depreciation of Qualified Improvement Property: Property
      such as leasehold improvement property, retail improvement
      property, and restaurant property under prior law was depreciable
      over a 15-year period. The Tax Cuts and Jobs Act had intended to
      make this property eligible for immediate expensing, but instead
      made it subject to 39-year depreciation
    • Net Operating Losses: The Tax Cuts and Jobs Act intended to
      ban the carryback of net operating losses for tax years starting
      after December 31, 2017. However, in another drafting error, the
      law banned the carryback for tax years ending after December 31,
      2017, creating a retroactive application of the change for fiscal
      year taxpayers
  • Tax Cuts and Jobs Act Regulations
    Treasury and the IRS are
    still working on finalizing many regulatory projects with respect to
    the Tax Cuts and Jobs Act. Under the law, those final regulations
    could be made retroactive to 2018 if adopted by June 22, 2019. The IRS
    has already indicated that some final regulations will not be applied
    to the 2018 tax year, but it is not certain that other regulations
    still to be finalized will not be given retroactive application.

As time passes, there will probably be greater pressure not to give
retroactive application to further tax changes. However, as with expired
provisions and technical corrections, some taxpayers are pushing for
retroactive application. All taxpayers will need to stay alert for
continuing developments with a possible impact on their 2018 tax returns.

About Wolters Kluwer

Kluwer Tax & Accounting
is a leading provider of software
solutions and local expertise that helps tax, accounting, and audit
professionals research and navigate complex regulations, comply with
legislation, manage their businesses and advise clients with speed,
accuracy, and efficiency.

Wolters Kluwer Tax & Accounting is part of Wolters Kluwer (WKL), a
global leader in professional information, software solutions, and
services for the healthcare; tax and accounting; governance, risk and
compliance; and legal and regulatory sectors. We help our customers make
critical decisions every day by providing expert solutions that combine
deep domain knowledge with advanced technology and services.

Wolters Kluwer reported 2018 annual revenues of €4.3 billion. The group
serves customers in over 180 countries, maintains operations in over 40
countries, and employs approximately 19,000 people worldwide. The
company is headquartered in Alphen aan den Rijn, the Netherlands.

Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are
included in the AEX and Euronext 100 indices. Wolters Kluwer has a
sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs
are traded on the over-the-counter market in the U.S. (WTKWY).

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Media Contact:
Marisa Westcott

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