If your firm
is a contractor to a federal agency, or does work for state or local government
agencies that receive federal funds, or if you are just a taxpayer, there are a
number of deadlines, milestones and actions in the coming weeks and months that
deserve your attention, for they will impact task orders, cash flow, the volume
of work under those contracts, and your taxes.
next six months, the following will occur, and many will directly impact your
fiscal year starts today, October 1.
Congress failed to enact regular appropriations bills, so a "continuing
resolution” to fund government activities and functions through March
27, 2013 was passed. At that time, the new Congress will have to decide on
spending levels for the remainder of the fiscal year.
On November 7, an election for President, all 435 seats in
the U.S. House, 33 seats in the U.S. Senate, as well as numerous governors,
state legislators and local offices will be on the ballot.
After the election, the current Congress will return to
Washington for a "lame duck” session.
But it will have fewer than 19 days to consider legislation.
Numerous tax provisions expire on January 1, 2013. Consideration
of these tax provisions will be a top priority for the lame duck Congress. Many economists fear that failure of Congress
to act on preventing automatic increases in taxes will result in a double-dip
In addition to the expiring tax provisions, a number of new
taxes included in the Affordable Care Act (health care law) go into effect
beginning January 1, 2013.
When Congress and President Obama finally reached agreement
on a debt limit increase in the summer of 2011, they put in place a process
that will result in an automatic "sequestration” or budget cuts, of $1.2
trillion over ten years, scheduled to go into effect on January 2, 2013, unless
Congressional action is taken prior to that date to avert the sequestration.
The prospect of these tax and spending changes has been
deemed a "fiscal cliff”.
In January, 2013, a new Congress will be sworn into office,
a President, regardless of who wins on November 7, will have an Inauguration,
and a State of the Union address will be given to Congress.
Whether Mitt Romney is elected, bringing in a new
administration or Barack Obama is re-elected, prompting a turnover in Cabinet
members and other political appointees, the Senate will be faced with numerous
confirmation hearings and votes.
Once January turns to February, the President’s fiscal year
2014 budget must be presented to Congress.
And the debt limit, which was increased in a contentious showdown in the
summer of 2011, is expected to be reached once again, requiring a vote in
Congress estimated to be in February or March.
Are you paying attention?
MAPPS staff will keep the membership informed of activities related to all these
important actions. Stay engaged, read
the MAPPS materials via the blog, website, Facebook, Twitter and MAPPS meetings
In an economy where you
are counting every dollar, it’s good to know you can count on MAPPS.