Tax Policy - The S Corporation Association

Priorities for Reopening Main Street

The Commerce Department last week revised its 2^nd Quarter GDP estimates showing the economy shrunk by nearly one-third. In a $22 trillion economy, that translates into nearly $2 trillion in lost wages, profits, retirement savings, etc.

The threat of this precipitous decline was the catalyst for the business community letter dated back on March 18^th. As Governors closed businesses and schools to slow the spread of COVID-19, one hundred and twenty national trade groups called on Congress to provide relief to families and employers that was on the same scale as the …

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admin2020-08-31T20:58:58+00:00August 31, 2020|

Avoiding a $100 Billion Tax Hike on Main Street

As the Administration negotiates with Congress over the next round of COVID-19 relief, here’s a simple way they can help Main Street businesses to the tune of $100 billion plus… just do what Congress intended.

That’s the message more than 170 business trades are sending to congressional leadership today. The letter, signed by the Farm Bureau, NFIB, AICPA, the National Restaurant Association, the National Retail Federation among others, makes clear that loan forgiveness under the Paycheck Protection Program should be tax-free as intended in the CARES Act. Here’s the text of the letter:

As Congress negotiates another round of …

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admin2020-08-04T15:36:30+00:00August 4, 2020|

NOL-Loss Limitation Relief Support Building

Advocates defending the CARES Act NOL-Loss Limitation relief had a busy week. First, more than 75 national and local trade groups signed a letter in favor of keeping the relief intact. The broad number of signatories on the letter, drafted by our friends at the National Mining Association, makes clear arguments that the provision was “snuck” into the CARES Act or would only benefit a “narrow” sliver of industries are wholly meritless. As the letter states:

The ability to carryback NOLs is a critical component of a well-operating income tax system. Indeed, NOL carryback provisions have long been …

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admin2020-06-23T15:09:26+00:00June 23, 2020|

Treasury Addresses 4960 Shortcomings – More Work Needed

When Treasury released its initial Section 4960 guidance last year (Notice 2019-09), S-Corp warned the rules would force many family businesses to dissolve their related charities and/or private foundations to avoid the new tax. Those concerns remain under the proposed rules published last week, but they are dramatically reduced, so that’s progress. Here’s the good and the bad on Section 4960.

To recap, tax reform created a new excise tax on million-plus salaries earned by executives at non-profits, or applicable tax-exempt entities (ATEOs). The targets were the high salaries earned by CEOs at charity hospitals and football coaches …

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admin2020-06-13T18:10:04+00:00June 13, 2020|

The truth about business tax relief in the CARES Act

S-Corp has a defense of the CARES Act NOL/Loss Limitation rules in today’s Washington Examiner. The piece begins:

For weeks, we’ve heard that the net operating loss and loss limitation relief included in the CARES Act is a “massive” tax break for “hedge funds” that was “snuck” into the bill at the last moment. Those of us who advocated for this provision know none of this is true. Here are the key facts readers need to know.

First, the policy at issue is important, even though it may not seem exciting. It gives businesses suffering net operating …

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admin2020-06-04T15:46:13+00:00June 4, 2020|