This weekend, the IRS published final regulations related to the qualified business deduction. The new deduction was part of the large legislation package added in December 2017. We are currently reviewing the 247 pages to prepare for the 2018 filing season. In our job arrangement letters, we stated the 2017 legislation may effect the time involved to prepare 2018 returns. For this specific section, the IRS estimates the time involved will range from 30 minutes to 20 hours per return. For the estimated 10 million affected taxpayers, the average time will be 2.5 hours. (Caution: The IRS always underestimates the time.)
We don’t have 10 million clients but we have more than 10. This provision will increase our tax preparation time, which will in turn, slow down the turn around time for all our clients. We appreciate you and wanted to update you immediately.