Congressional Delays Could Cost Wineries Dearly - Act Now
There is a tax law issue that has been stuck in Congress for over a year. It’s a somewhat obscure law change, but one that will likely create a substantial tax liability for all vineyard and winery enterprises this year.
Despite numerous hopes and promises, Congress has failed to take any meaningful action on the new tax law for Research Expenses (Section 174) that came into effect for the 2022 tax year.
The Cost to Wineries
If no Congressional action is taken, this new rule will likely result in significant additional tax to you. More information is available from our friends at Alliantgroup in this online article. An example of a potential impact is outlined in the attached letter template.
Act Now to Share Your Voice
We recommend that you write a letter to all of your federal Congressional representatives, urging them to take immediate action. Their current session runs through July 28, 2023. If no resolution or clarity is provided by that date, then we will need to proceed with implementing the new rules for your 2022 tax filings, which could dramatically increase your tax liability.
Please copy the attached letter to your company’s letterhead to write to your representatives in Congress. Just add a date at the top and a signature block at the bottom. The wording should otherwise be all ready to go. The more constituents they hear from, the more likely they are to understand the urgency and give this the priority it deserves.
Please consult your tax advisor with questions about how you may be impacted by this change.