House Passes Tax Relief for American Families and Workers Act of 2024

Cross References

H.R. 7024 On January 31, 2024, the House passed the Tax Relief for American Families and Workers Act of 2024 by a vote of 357 to 70. If passed by the Senate and signed into law by the President, the new law would increase the Child Tax Credit, delay the requirement to deduct research and experimentation expenditures over a five-year period, extend 100% bonus depreciation through 2025, and increase the Section 179 deduction limitation. Although the bill received overwhelming bipartisan support, the fate of the legislation remains unclear in the Senate, with many Senators expressing the desire to make changes to the House version of the bill. With tax provisions likely to become retroactive for the 2023 tax year, taxpayers and tax preparers have expressed concern about having to wait to file 2023 tax returns. News reports are claiming that IRS Commissioner Danny Werfel is urging taxpayers to not wait for Congress to pass the bill. He stated the IRS will ensure taxpayers get what they are owed without having to file amended returns.

Author’s Comment None of this information is official and is merely speculation of what might happen. We normally do not report on legislation until it becomes law.

However in this case, given the history of how legislation is enacted and how the IRS might respond to retroactive changes, tax preparers should inform their clients about the possibility of retroactive changes and the potential for complications to their 2023 tax returns if they file now.