Over the last two weeks in this space, I have written about some pieces of the recently passed Inflation Reduction Act. I am not going to do much of that this time, but the rollout of the bill’s provisions (and some guidance that has already been put out there) shows that this goes beyond headlines and bullet points.
This is not a statement intended to place fault on anyone. Congress can pass legislation with a very clear desired outcome, but how that outcome is going to be achieved is a more boots-on-the-ground operation than any wording of legislation.
So now, there will be some choices made as to how the IRS institutes some of these new tax credits included in the bill. So now, the IRS will have to choose exactly how it spends the new money that it will receive because of some of what is in the bill. And also, it is naïve to think that the first answer given to these concerns is going to be the final answer.
Because again, once you start putting things into actual practice, new wrinkles are found …
So what does this really mean?
The biggest thing that I want to point out here is that when things this big (and frankly, important) happen, you cannot just take an initial headline and think you have all the answers. Especially when it comes to large pieces of legislation like this, you may be able to summarize what is included in one page, but the actual bill is many, many pages and those pages of details do matter when it comes to implementation.
This is not to then say that if you want to take advantage of some of these new tax credits that you must be diligently scouring the news so that you can do it correctly. Rather, this is a call to understand that there are people who are doing that work, there are people who will be keeping up with what has to happen to make it work for everyone. This is a bit of a trite comparison, but if you’re having heart surgery, you want it to be done by somebody who has a lot of expertise in heart surgery. It does, however, show that there is value to trusting in the knowledge of others.
So this will all shake out in time, there will be people who can help you navigate when you need to, and as always, do not be afraid to reach out when you need help with that navigation.
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