Treasury - The S Corporation Association

Reichert, Buchanan Present S Corp Tax Relief to Ways and Means

As our members know, S-Corp wears two hats when it comes to advocacy – one is defensive where we protect S corporations from bad tax policy. The other is proactive and seeks to improve the S corp rules.

Both hats were on display this week before the House Ways & Means Committee. First, Rep. Dave Reichert (R-WA) discussed his S Corporation Modernization Act which makes a number of improvements to the S corporation rules, including opening the door to foreign investment into S corporations. As Rep. Reichert told the Committee:

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admin2019-02-01T19:56:24+00:00May 13, 2016|

Treasury’s Section 385 Regs and S Corps

The business community is beginning to recognize that Treasury’s new Section 385 regulations published on April 4^th have a much broader reach than anybody thought. S corporations in particular need to pay attention.

How broad are they? Here’s how Tax Notes described a meeting of the ABA Section of Taxation here in DC last week:

Practitioners who specialize in the taxation of S corporations said they’re concerned that many S corps may end up gratuitously losing their S corp status if the new related-party debt rules are applied as written without exception.

Thomas J. Nichols of Meissner Tierney Fisher & Nichols SC said that …

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admin2019-02-01T19:56:24+00:00May 11, 2016|

Administration Updates its Corporate Tax Reform Proposal

Lost in all the hoopla over the Treasury’s new inversion policies was the accompanying update to their corporate tax reform outline. You can read the whole 30-page document here, but the bottom line is that not much has changed.

The plan still treats the pass-through community as second-class citizens by broadening the tax base for all businesses while only reducing rates for those organized as C corporations. As a result, successful pass-through businesses would be subject to 45 percent top rates on a broader base of income – a double whammy coming just three years after the Fiscal Cliff hiked …

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admin2019-02-01T19:56:25+00:00April 7, 2016|

Legislative Update and Treasury’s Effective Rate Study

Legislative Outlook, Post-Boehner Announcement

Speaker Boehner’s announcement that he plans to retire at the end of October has implications for tax policy and next year’s spending levels. Here’s our outlook for both.

International Tax Reform: Lots of noise on the tax front. The latest rumors on the Ryan-Schumer plan to pair highway funding with international tax reforms are that:

The plan is complete and has been sent up to the Administration for their review and sign-off;
The plan is not finished and is hung up over a disagreement regarding how much to spend on highways;
The plan will be presented to the Ways & Means …

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admin2019-02-01T19:59:04+00:00October 2, 2015|

A Tale of Two Speeches

The president gave his State of the Union speech last Tuesday, while his Secretary of Treasury spoke to the Brookings Institution the following morning. The president didn’t mention tax reform, whereas Lew devoted nearly his entire speech to building the case for action this year. It was a head-scratching juxtaposition that still has us wondering if Treasury and the White House are on speaking terms these days.

You can read the president’s speech here
You can watch the Lew speech here

Lew’s speech in particular is worth watching. His focus was on the tax reform “framework” Treasury put forward three …

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admin2019-02-01T20:00:11+00:00January 26, 2015|