Tax Alert

Impact of the American Taxpayer Relief Act of 2012 on Financial Statements
(Jan. 16, 2013)

On Jan. 2, 2013, President Barack Obama signed into law the American Taxpayer Relief Act of 2012 (ATRA). In addition to extending tax rate reductions for individuals, ATRA also extended several business tax provisions. In some cases, these extensions are retroactive to 2012.

Some of the retroactive provisions are:

  • Research and development (R&D) credits
  • Work Opportunity Tax Credits
  • Various renewable energy credits
  • The subpart F exception for active financing income
  • The look-thru treatment of payments among related controlled foreign corporations under foreign personal holding company rules
  • The ability to claim a Section 199 deduction on manufacturing activities in Puerto Rico


Companies must be aware of the proper financial statement period in which to include the effects of these retroactively reinstated provisions.

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Sheryl Vander Baan

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Sheryl L. Vander Baan