Tax Policy - The S Corporation Association

S-Corp Modernization Introduced in the House

Good news for the S corporation community! Ways and Means Member Brad Wenstrup (R-OH) has introduced the S Corporation Modernization Act of 2024 (H.R. 8614). S-Corp Mod has a long history of simplifying the rules for Main Street businesses and helping the Main Street businesses be more competitive as they remain in the family.

The introduction of this year’s bill will help S-Corp move forward on a list of technical tax provisions important to the country’s 5 million S corporations, including:

Increasing their access to capital;
Expanding the list of eligible shareholders to include more employees, non-resident aliens, and retirement …

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admin2024-06-05T14:04:22+00:00June 5, 2024|

Wait, What???

Under the category of “Care to elaborate?” this month’s CBO analysis of the fiscal cliff costs includes estimates of the Section 461(l) excess loss provision that are, shall we say, significantly revised. The new numbers are much more believable, but they do beg the question of what took the JCT so long to rework their original estimates.

To review, the TCJA capped the ability of pass-through business owners to deduct their active business losses. Under the old rules, those losses could immediately offset other forms of owner income (wages, capital gains, investment income, other business income, etc.). This approach …

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admin2024-05-28T20:13:26+00:00May 28, 2024|

The Bull Case for a Bipartisan Fiscal Cliff Deal

For years we’ve been sounding the alarm over the 2025 “fiscal cliff,” a watershed moment that will force lawmakers to address a litany of expiring tax provisions or risk a massive tax hike on families and Main Street businesses. Below is a look at what’s at stake for Main Street businesses and our bull case for Congress taking action next year.

Sunsets and Families

One TCJA myth is that it benefited big corporates and billionaires only. That’s simply not true. Much of the tax relief targeted at corporations and wealthy individuals was paired with significant revenue raisers, while the tax relief targeting …

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admin2024-05-20T13:30:13+00:00May 20, 2024|

Fiscal Cliff Gets Renewed Focus

In a sign that lawmakers are not content simply waiting until next year to address a litany of scheduled tax hikes, House Ways & Means Committee Chairman Jason Smith yesterday announced a series of “tax teams” tasked with identifying legislative solutions to avert the 2025 fiscal cliff.

Ten groups in total, each comprised of at least give Republicans from the panel, will address a specific policy area, from manufacturing to global competitiveness.

The team that caught our eye will focus on Main Street, and is appropriately led by Congressman Lloyd Smucker (PA), a staunch ally of the pass-through business community and …

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admin2024-04-25T13:43:13+00:00April 25, 2024|

Support CTA Relief

The House Small Business Committee is holding a hearing on the Corporate Transparency Act later this month. One witness will be Carol Roth, a bestselling author and small business advocate who has helped lead the charge against the poorly crafted law.

We’ve covered the CTA at length over the past few years but the bottom line is that while reporting under the CTA started already and the deadline is the year’s end, only a tiny percentage of the targeted 33.6 million small businesses even know it exists. That’s bad because a failure to file is accompanied by thousands …

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admin2024-04-16T20:48:03+00:00April 16, 2024|