Washington Wire
The C SALT Loophole
Last month, the Bipartisan Policy Center put forward some suggestions on how to address the pending sunset of the State and Local Tax (SALT) cap, including rolling back the pass-through “SALT Parity” laws we helped enact in 36 states. A couple of thoughts.
Pass-Through Parity
First, the SALT cap played a big role in our efforts to ensure pass-through businesses were treated fairly under the TCJA. The SALT cap raises huge amounts of revenue ($100 …
(Read More)
CTA Update | January 16, 2025
Notable Developments
- S-Corp files amicus with SCOTUS
- Main Street backs repeal bill
- Second injunction issued
* * *
SCOTUS Review Should Compel Administrative Relief
Last week the S Corporation Association filed an amicus brief with the Supreme Court urging retention of the nationwide injunction against the CTA. The brief was one of more than a dozen filed by the state attorneys general, trade associations, and other stakeholders, all of which can be accessed here.
With millions of …
(Read More)
199A Permanence Dominates Tax Hearing
The House Ways & Means Committee today kicked off the new Congress with a hearing focused on the family and business provisions included in the Tax Cuts and Jobs Act. But the topic that took center stage is one that’s near and dear to the hearts of millions of Main Street businesses nationwide – addressing the looming expiration of the Section 199A deduction.
The panel first heard testimony from Michelle Gallagher, an S-Corp Advisor …
(Read More)
Main Street 199A Resources
In the past, we’ve posted all the studies, data, and other information we’d compiled in support of the 199A deduction (here and here).
With Congress debating the deduction once more – Ways and Means hearing tomorrow! – we thought this would be a good time to repost all this work. It demonstrates both the importance of the pass-through sector to the economy and the importance of Section 199A to the pass-through sector.
The Importance …
(Read More)
Big Beautiful Bill(s)
Only a couple of days into the new Congress and they’re ready to throw hands!
The Chairman’s frustration is justified. The obsession with process over policy is getting old. As Senator Bob Dole used to say, you should talk about your accomplishments, policies, and facts first. If you don’t have any of those, then fall back on process. “You can always talk about process.” Focusing on …
(Read More)
CTA Update | January 7, 2025
Notable Developments
- Government appeals to SCOTUS
- Lawmakers still pushing for CTA repeal
- Yet another Treasury hack
* * *
Legal Update
Immediately following the reinstatement of the nationwide injunction against the CTA by the Fifth Circuit, the government asked the U.S. Supreme Court to overturn that ruling and restore the filing deadline while the broader case remains pending. As SCOTUS Blog notes, the government’s argument focuses in part on whether federal courts have the authority to …
(Read More)
CTA Injunction Reinstated!
The Corporate Transparency Act saga took a welcome turn yesterday after a Fifth Circuit Court panel reinstated the nationwide injunction against the statute.
As a result of the order, Main Street businesses are not required to comply with the Corporate Transparency Act’s reporting requirements until the Fifth Circuit is able to more fully consider the injunction and the underlying merits of the legal challenge. The key paragraphs from that ruling are below:
On December 3, 2024, …
(Read More)
CTA Filing Deadline Extended to January 13th
It’s far short of the one-year delay S-Corp was seeking, but businesses covered by the Corporate Transparency Act received a small stocking stuffer yesterday, courtesy of the Treasury Department.
Following the unfavorable ruling by the Fifth Circuit which reinstated the Corporate Transparency Act, the Financial Crimes Enforcement Network (FinCEN) has extended the general CTA filing deadline two weeks, until January 13th. According to the notice posted on the FinCEN website:
Reporting companies that were created …
(Read More)