Monday, August 12, 2019
WASHINGTON, DC -- Connecticut tax professionals are warning clients that the IRS may not let them keep benefits from a state program designed to ease the pain of the tax law’s cap on state and local deductions. The state’s workaround is viable for now, but the IRS has already issued guidance killing another effort to circumvent the $10,000 cap, and officials have suggested they’re not done. The result of regulations curbing the Connecticut plan would be simple: Taxpayers could end up paying more in federal taxes.