entity-level tax - The S Corporation Association

IRS Considering More S Corp Guidance

The 2004 American Jobs Creation Act contained numerous S Corp friendly provisions, including increasing the number of allowable S Corp shareholders from 75 to 100 and expanding the definition of a single shareholder to include large families.

According to BNA, the IRS is actively considering issuing additional guidance for some of the provisions (Sections 231 through 240 of the bill), including additional guidance on Section 231 of the Act, which defines which members of a family may be treated as a single S corporation shareholder. This additional guidance was part of the IRS’s business plan for 2005/2006 business year, which ends …

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State Update and IRS Issues S Corp Rules

As S-CORP members will recall, S-CORP has been monitoring a number of states considering tax bills that will adversely affect S corporations. We were fortunate to lay the groundwork in Pennsylvania in working with others to Pennsylvania Governor Ed Rendell.
S corporations fared better in Pennsvylania when, following the recommendation for a new entity-level tax in that state, S-CORP and others lobbied to reject proposed tax hikes on S corporations. Following active communications with the Rendell office, S-CORP scored a major victory when Rendell announced in February 2005 that his budget proposal would not embrace new taxes on S corporations. Rendell …

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