Christine Walizer, Author at The S Corporation Association

CTA Filing Pause Still in Effect

Good news! While the Supreme Court yesterday sided with the federal government in striking down an injunction against the Corporate Transparency Act, FinCEN quickly stepped in with an announcement that the filing requirements remain on hold so long as a second ruling remains in place. Here’s the notice currently posted on FinCEN’s website:

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal …

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admin2025-01-24T18:06:09+00:00January 24, 2025|

Main Street Tax Certainty in the House (and Senate)

Earlier today Senator Steve Daines and Congressman Lloyd Smucker reintroduced their Main Street Tax Certainty Act, legislation to make permanent the Section 199A deduction. The bills mirror S. 1706 and H.R. 4706 from last Congress, meaning the campaign to protect Main Street from looming tax hikes is once again a bicameral and bipartisan effort.

The legislation introduced today builds on our prior success in a big way. Whereas the previous House bill garnered support from 91 original cosponsors – a significant feat in and of itself – Congressman Smucker’s bill was released today with the backing of 151 original cosponsors. It’s …

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admin2025-01-23T22:47:21+00:00January 23, 2025|

Main Street Rallies Around 199A Permanence

More than 230 trade associations came out in support today of legislation to make permanent the Section 199A deduction. Appropriately named the Main Street Tax Certainty Act, the bill is set to be reintroduced tomorrow by Senator Steve Daines (R-MT) and Representative Lloyd Smucker (R-PA), two of the Main Street business community’s staunchest allies.

The deduction was enacted in 2017 to encourage job creation and new investment by private businesses. It also helps private companies compete with public corporations. Without the deduction, pass-throughs would face rates up to 16 percentage points higher than their publicly-traded competitors. The challenge is …

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admin2025-01-22T16:48:04+00:00January 22, 2025|

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 billion-plus per year) and about 20-30 percent of that is paid on pass-through income. For comparison, that’s about half the total revenue impact of the …

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admin2025-01-16T19:22:08+00:00January 16, 2025|

CTA Update | January 16, 2025

Notable Developments

S-Corp files amicus with SCOTUS
Main Street backs repeal bill
Second injunction issued

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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 affected businesses watching, now would be a perfect time for the incoming Trump administration to announce it will administratively delay filing under the CTA, thus …

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admin2025-01-16T18:57:07+00:00January 16, 2025|