Being prepared for taxes

The first half of 2021 has come with its fair share of questions.  Will school be in person?  Will the vaccine work?  Will things ever go back to “normal” (whatever that is)?  

While a lot of this is still unknown, I think we can all agree that we are closer to having answers than we were a year ago.  But if you are anything like me and like to plan ahead, this has been a challenging time.

With so many things still up in the air, we may as well add taxes to the list. With a new president taking office earlier this year, changes are on the horizon.  While it often feels like we are still getting used to the most recent tax reform, we now need to start looking forward to what will come next.

What will be in the final tax law?  What will the proposed changes mean for your bank?  Will we have new tax rates for 2022?  While we don’t have all the final answers, changes to the tax code seem imminent and will likely affect everyone in some way.  

For some banks, shareholder tax distribution calculations may need to be adjusted.  For others, an increase in tax rates will mean a true-up of their deferred tax inventory, which may impact their income statement.

No matter what the final tax law includes and when it is signed, we can help you prepare for the potential impact on your bank.  Reach out to your Wipfli advisor so that planning ahead for the second half of the year comes with as few “unknowns” as possible!