Tax Policy - The S Corporation Association

The “Experts” Get 199A Wrong

When Congress finishes work on the tax package pending in the Senate, we expect the conversation to pivot rapidly to what we should do about all those expiring TCJA provisions at the end of 2025.

For S-Corp and its allies, our priority is to make the Section 199A deduction permanent and a big hurdle there is the lack of understanding of how pass-throughs are taxed and why the Section 199A small business deduction is critical to their success.

For example, of all the Republicans who served on Ways and Means during the TCJA debate, only five remain today. The staff …

(Read More)

admin2024-02-22T15:04:04+00:00February 20, 2024|

Tax Package Heads to the Senate

Yesterday evening the House came out in strong support for the tax relief package negotiated by Chairmen Ron Wyden (D-OR) and Jason Smith (R-MO). Less than two weeks after sailing through the Ways & Means Committee, the bill passed the full House 357-70 and now heads to the Senate. Below is a look at what’s inside the bill, its prospects in the upper chamber, and what it means for the Main Street business community.

Bill’s Provisions

The Tax Relief for American Families and Workers Act is centered on reversing several of the TCJA’s key revenue raisers. The bill allows for immediate expensing …

(Read More)

admin2024-02-01T14:46:15+00:00February 1, 2024|

2024 Tax Policy Outlook

It still feels like the calm before the storm, but federal lawmakers are back in town to kick off what could be a surprisingly interesting year for tax policy. Below are a few items we’ll be watching closely on behalf of the pass-through business community.

Tax Package in the Funding Deal?

The big news this weekend was the deal reached by party leaders to keep the federal government funded through 2024. The deal calls for modest increases in defense spending while keeping non-defense outlays at current levels. It also executes some of the targeted spending cuts that were agreed to in …

(Read More)

admin2024-01-10T00:38:41+00:00January 10, 2024|

No One is Ready for the CTA

Just in time for Thanksgiving, Sunday’s Wall Street Journal’s editorial page highlighted our Main Street letter calling for a one-year delay of the Corporate Transparency Act’s reporting requirements. Appropriately titled The Coming Deluge for Small Business, the article reads:

The CTA assigns the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) with identifying shell companies used for illegal transactions and creating a registry of businesses with less than $5 million in annual sales and fewer than 20 employees.

That describes most small businesses in the country. In a Nov. 16 letter to Congressional leaders, 69 groups representing millions of small …

(Read More)

admin2023-11-21T15:48:38+00:00November 21, 2023|

Congress Can Still Prevent a Regulatory Trainwreck

With just a month to go before the Corporate Transparency Act’s reporting requirements take effect, it’s abundantly clear – not to mention extremely worrying – that federal regulators simply do not have their act together when it comes to implementing the new law.

Recognizing this, the Main Street business community today called on lawmakers to delay the Corporate Transparency Act’s reporting requirements by one year, which would give the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) enough time to finish its work on the regulatory and education fronts.

The letter, which was signed by 70 trade associations including the National Federation …

(Read More)

admin2023-11-21T14:05:58+00:00November 16, 2023|