Tax Policy - The S Corporation Association

S-CORP Weighs in On Corporate Tax Reform

It’s his last term in Congress, and Ways and Means Chairman Bill Thomas (R-CA) is working hard right up until the end. While few observers think tax reform will make tangible progress before November’s mid-term elections, the Select Revenue Measures Subcommittee is churning through the myriad of issues involved in reforming the tax code for businesses operating domestically and internationally, laying the groundwork for future legislative action.

S-CORP is engaged, submitting comments to the Committee on the importance of preserving the unique tax treatment of S corporations while outlining its concerns with the recommendations put forward by the President’s Advisory Panel …

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admin2019-02-06T18:47:19+00:00May 25, 2006|

President Signs Tax Bill

Before a South Lawn crowd today, President Bush signed into law H.R. 4297, the “Tax Increase Prevention and Reconciliation Act of 2005″. Cumbersome name aside, the bill is a relatively streamlined effort to extend several expiring tax provisions, including the lower tax rates on capital gains and dividends, and middle-class protection from the Alternative Minimum Tax.

S-CORP’s focus now turns to the second tax bill, known in tax circles as the “trailer package”, and the open question of which of the provisions excluded from the first bill will make it into the second (“trailer trash”). S-CORP continues to work with friends …

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admin2019-02-06T18:47:19+00:00May 17, 2006|

No Agreement on H.R. 4297

House and Senate tax writers failed to reach an agreement this week on a final tax reconciliation conference report (H.R. 4297), despite earlier predictions that a final bill would be unveiled this week. It appears that the final bill will include both the AMT relief the Senate wants and the extension of the lower rates on investment income the House wants, as well as provisions necessary to cover the out-year revenue losses of the lower rates. According to Senate Finance Committee Chairman Grassley, these items add up to $74 billion over five years, $4 billion more than the budget limit. …

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admin2019-02-06T18:47:20+00:00April 28, 2006|

Tax Relief Bill Negotiations Proceed

Today’s Congress Daily includes a number of points about the conference between House and Senate negotiators:

“One source said April 25 it appears House negotiators will be willing to accept at least some of the offsets that were included in the Senate’s bill.”
“It also appears that negotiators are simultaneously working out the details of a second bill of tax break extenders that will be dropped from the reconciliation bill, the source said.”
“Pressure from the leadership and administration remains on conferees, Senate Finance Committee Chairman Charles Grassley (R-Iowa) said April 24, but he added that it was unclear whether a deal could …

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admin2019-02-06T18:47:20+00:00April 26, 2006|

IRS Considering More S Corp Guidance

The 2004 American Jobs Creation Act contained numerous S Corp friendly provisions, including increasing the number of allowable S Corp shareholders from 75 to 100 and expanding the definition of a single shareholder to include large families.

According to BNA, the IRS is actively considering issuing additional guidance for some of the provisions (Sections 231 through 240 of the bill), including additional guidance on Section 231 of the Act, which defines which members of a family may be treated as a single S corporation shareholder. This additional guidance was part of the IRS’s business plan for 2005/2006 business year, which ends …

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admin2019-02-06T18:47:20+00:00April 20, 2006|