Dear S-CORP Member:
Perhaps no election more than this one embraced the notion that the only constant is change. What a difference a few electoral votes make!
Under the widely-expected Clinton Administration, we were bracing to do battle on one major issue after another. Higher tax rates, more harmful regulations, more hostility towards markets. 2016 was the “Year of Playing Defense” and 2017 promised to be more of the same.
Not that we were ready to throw in the towel. A little preparation and lots of shoe leather advocacy can do wonders. In 2016, we continued to establish our Parity for Main Street Employers group as the voice of the pass through business community, while simultaneously fending off two major Treasury regulations targeted directly at our members
Those two rules—the related party loan rules put out under Section 385 and the family business valuation rules put out under Section 2704—consumed an enormous amount of our time and resources. For each, we took a leading role, framing the arguments, identifying the messengers, and educating tax writers about the threat these rules posed to the business community. In the end, we won an outright victory on 385—Treasury rewrote them with a full exemption for S corporations! —while we positioned ourselves to continue the fight on 2704 under a prospective Clinton Administration.
But, we don’t face a Clinton Administration this year. Instead, Trump won and everything changed.
To read the full letter, please click here.