Washington Wire
CTA Update | October 23, 2024
Notable Developments
- Request for Signatories: Member letter to FinCEN
- FinCEN says tech issues are your fault
- Updated FAQ limits CTA exemption
- HOAs have their day in court
- TD Bank case shows the current system works
Legislative Update
Congresswoman Lisa McClain is circulating a letter (linked here) requesting that FinCEN delay the CTA’s year-end reporting deadline and is requesting support from additional offices. Word is Financial Services Committee member French Hill (R-AR) has signed on.
For staffers …
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Congresswoman Beth Van Duyne Hosts Texas Roundtable on 199A
Members of the Main Street Employers Coalition today joined Congresswoman Beth Van Duyne to discuss the critical role the Tax Cuts and Jobs Act (TCJA) and its Section 199A Main Street business deduction have played in driving investment and supporting job creation. It was the fifth event (see here, here, here, and here) we’ve helped organize under the Ways & Means tax teams banner, an effort initiated by committee Chairman Jason Smith aimed at …
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Tax Teams Comment Summary
Back in April, Chairman Jason Smith announced the formation of ten tax teams designed to identify legislative solutions to avert the coming 2025 fiscal cliff.
In addition to engaging directly with Main Street employers through hearings and roundtables (see here, here, here, and here), the effort requested feedback from stakeholders as to their priorities for the coming year. S-Corp and its allies responded with numerous comments, including:
- Main Street …
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Arrington Talks 199A and Chamber Hits Hill
Couple of items worth highlighting on the Section 199A front. First, House Budget Committee Chair Jodey Arrington (R-TX) joined CNBC’s Squawk Box yesterday to talk fiscal cliff and the ever-growing budget deficit. Asked by host Andrew Ross Sorkin whether going to a corporate tax rate of 15 percent “is the right answer,” Arrington replied:
I’m more interested in locking in permanent small business tax breaks that will expire at the end of next year, like …
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Are JCT’s Tax Burden Tables Flawed?
One of the more bizarre tax policy moments this year was the Chairman of the Senate Finance Committee calling the distributional tables produced by the Joint Committee on Taxation (JCT) “junk math.”
Why bizarre? Well, for starters, Wyden is the Chairman of the JCT. Those estimates were being produced under his leadership, in preparation for a hearing he chaired. Far more importantly, there is nothing “junk” about them. The JCT has been producing similar tables …
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Congressman Kustoff Hosts 199A Roundtable in Memphis
Members of the Main Street Employers Coalition convened in Memphis, Tennessee yesterday for a roundtable event hosted by Congressman David Kustoff. It was the latest of many “Tax Teams” events we’ve held in recent months and is part of Ways & Means Chairman Jason Smith’s plan to solicit input from stakeholders as lawmakers work to avert the 2025 fiscal cliff.
The group in attendance spanned all corners of the Main Street business community, from wine and …
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CTA Pressure Ramps Up
As a followup to yesterday’s CTA Watch newsletter we wanted to highlight two notable items, starting with a great thread by our friend Liam Donovan from the Associated Builders and Contractors. Liam breaks down the history of the CTA, the statute’s underlying flaws, and where things currently stand:
Among his other points, Liam does an excellent job of explaining just how confounding the Senate’s failure …
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CTA Update | October 2, 2024
Notable Developments
- Weak compliance numbers heighten concern
- Appeals court hears oral arguments
- Full court press in Ohio
- CTA is not a tax enforcement exercise
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Regulatory Update
New filing data from FinCEN is out and it paints a bleak picture when it comes to nationwide compliance rates. As the linked data shows, the vast majority of businesses required to file under the CTA have not done so – despite just three months to go before …
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