Retroactive beneficial tax legislation, such as the just-passed “Tax Relief and Health Care Act,” is always welcome.The legislation, which President Bush is expected to sign shortly, contains numerous tax provisions, including a slew of tax benefit extenders, energy tax incentives, health savings account changes, tax administration modifications and technical corrections to earlier tax legislation.

However, there is one wrinkle caused by the legislation that will complicate this tax season for preparers. Returns were already being printed when the law was being finalized, so changes effective in 2006 won’t be reflected on paper returns and their accompanying instructions. Practitioners will have to independently review the application of the legislation to taxpayers for 2006.

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