What happens next with the TCJA? Tax professionals are concerned

Tax professionals who have been in the business for several years know that the implementation of the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, was time-consuming and stressful, so they are now concerned about what happens next since the act’s provisions are set to expire at the end of 2025, according to a report from Bloomberg Tax.

Of the 434 tax practitioners from corporate tax departments who participated in the online survey, 88% were working in tax when the TCJA was enacted late in 2017, Bloomberg Tax said in its report, 2025 Tax Changes Readiness Survey: Insights for Tax Department Optimization. Of those, 92% said the TCJA was very or moderately disruptive to their department processes. And 62% said it took at least one year to fully implement the TCJA changes.

“The greatest concern is always with the timing for provision calculations,” one respondent told Bloomberg Tax. “If legislation is passed on a very last-minute basis like in 2017, then there is a great push needed in a short period of time.”

The survey confirms these concerns are widely shared among tax professionals; 81% of respondents report that they are moderately to very worried or stressed about the possible effect of a TCJA sunset.

“Of course, another potential stumbling block for preparation is that we don’t know whether the sunsetting provisions will expire, be extended as is, made permanent, or replaced with new tax reform legislation entirely,” the survey says.

The survey’s introduction points out that the Republicans who control Congress and the White House “are likely to move to preserve and extend as much of the 2017 tax law as possible. However, details remain unclear as lawmakers need to balance [President Donald] Trump’s campaign promises — such as lowering the corporate tax to 15% — with a ballooning federal deficit.”

Other highlights from the survey by Bloomberg Tax, which sells tax software:

• Most respondents (88%) find it difficult to run modeling scenarios to assess the effect of the TCJA’s possible sunset, and only half have started doing so.

• While 62% believe they can modify their existing workpapers, one in four anticipate significant challenges, and 10% will need to create entirely new workpapers.

• About 60% begin preparing for tax law changes at least six months in advance, “meaning firms that have not started planning are already falling behind.”

• Forty percent anticipate an increase of at least $100,000 in tax consulting budgets if major TCJA changes occur.

The survey of managers, senior managers, directors, vice presidents, and C-suite members of the tax department of public or private corporations was conducted in November 2024.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.