Washington Wire
CTA Delay Gets Renewed Focus in Senate
The Main Street business community came out in force today calling on Congress to adopt a one-year delay of the Corporate Transparency Act as part of this year’s National Defense Authorization Act. The effort, led by the Main Street Employer’s coalition and backed by more than 135 of its trade association allies, is in support of a pair of NDAA amendments. As the letter explains:
Amendments sponsored by Senators Tim Scott (#2169) and James Lankford …
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The “Experts” Get 199A Wrong (Part 3)
A recent Twitter thread caught our eye. S-Corp typically avoids these Twitter feuds, but this is an important topic that deserves some clarity. Here’s the thread in question:
So Pomerleau thinks 199A is unnecessary while S-Corp and our Main Street Employers Coalition have long maintained that 199A is necessary for rate parity. Who is right?
Effective Statutory Tax Rates
Looking at Pomerleau’s paper, he uses three measures …
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CTA Update | July 16, 2024
Notable Developments
- Appeals court sets hearing date
- Yellen grilled by House lawmakers
- New FinCEN guidance expands CTA’s reach
Legal Update
The Eleventh Circuit Court of Appeals announced a hearing in NSBA v Yellen, the case challenging the constitutionality of the CTA, will take place on September 27. While the court is working under an expedited timeline, that date is just three months ahead of the year-end filing deadline for existing entities.
To recap our latest alert, …
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Tax Teams and Section 199A
A couple of quick updates on the Ways & Means “Tax Team” front. First, the Main Street Employers Coalition today submitted comments making the case for a permanent Section 199A pass-through deduction.
The letter is addressed to the Main Street Tax Team, one of ten teams organized by Ways & Means Chairman Jason Smith to identify solutions to the 2025 fiscal cliff, and it covers the various key aspects of the 199A debate – why …
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Elusive Tax Cheats
More evidence the campaign to target high-income taxpayers with more audits isn’t going too well. A new report by the Inspector General for Tax Administration at the Treasury Department (TIGTA) suggests the expanded audits are failing to raise the promised revenue. Here’s the WSJ’s take:
Unlike bank robbers, IRS auditors tend to look where the money isn’t. That’s what happened after the agency started scrutinizing more tax returns from the wealthiest Americans. A new …
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Defending 199A in Tax Notes
Tax Notes ran a letter to the editor this week penned by S-Corp President Brian Reardon. It responds to a recent critique of the Section 199A deduction and serves as a useful “cheat sheet” in rebutting the various claims we’ve seen over the years.
The first is that extending 199A will add to the deficit. As the piece points out:
The deduction was packaged with numerous tax hikes — the state and local tax cap, …
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Talking Taxes in a Truck Episode 38: Helping Students Read Better
Our latest podcast guest is Marc Matsoff, President of Read Naturally, a Minnesota-based company that helps developing readers of all ages.
Marc discusses the company’s fascinating history and how the S corporation structure has helped it stay in the family for three generations, as well as the various tax challenges they currently face – from the looming expiration of Section 199A to their inability to deduct their R&E tax regime.
This episode of Talking Taxes in a Truck …
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Congressman Steube Hosts Main Street Employers Roundtable
More than 20 business owners and members of the Main Street Employers Coalition convened in Sarasota, Florida yesterday for a roundtable discussion with Congressman Greg Steube. The key topic – the Section 199A deduction – was one that’s near and dear to the hearts of tens of millions of Main Street businesses nationwide, yet is scheduled to sunset at the end of next year.
The businesses …
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