Uncategorized - The S Corporation Association

The Tax Foundation Gets it Right (Sort Of)

The Tax Foundation published its annual piece on pass through businesses this week, and as usual, there’s lots of great material in there. To begin, the Foundation updates its numbers on pass through employment and marginal tax rates. As in past years, pass through businesses employ the majority of private sector workers even though they face marginal tax rates that often exceed 50 percent! Talk about shooting yourself in the foot, economically speaking.

Robert Samuelson at the Washington Post noticed. In an op-ed last week, he highlighted some of the key metrics found in the Foundation’s report:

“Here are some …

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admin2019-01-31T22:50:18+00:00January 26, 2017|

Our Chairman’s 2017 New Year Message

Dear S-CORP Member:

Perhaps no election more than this one embraced the notion that the only constant is change. What a difference a few electoral votes make!

Under the widely-expected Clinton Administration, we were bracing to do battle on one major issue after another. Higher tax rates, more harmful regulations, more hostility towards markets. 2016 was the “Year of Playing Defense” and 2017 promised to be more of the same.

Not that we were ready to throw in the towel. A little preparation and lots of shoe leather advocacy can do wonders. In 2016, we continued to establish our Parity for Main Street …

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admin2017-01-12T15:01:15+00:00January 12, 2017|

S-CORP Testifies at IRS

Last month’s elections so dramatically changed the outlook for tax policy in 2017 that we’re still trying to catch up. The outlook for the proposed 2704 regulations in particular has done an about-face, going from appearing almost inevitable to having the Chairman of the Ways and Means Committee, along with others, targeting them for elimination quickly next year.

But they are not dead yet, and the regulatory process moves on. Today, the IRS hosted its public hearing on the proposed rules, and the family business community arrived in force—S-CORP in particular. We submitted our formal comments back on October 17th, …

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admin2019-02-01T19:49:54+00:00December 1, 2016|

The Short, Unhappy Life of the 2704 Valuation Rules

Do family businesses still need to worry about the 2704 valuation rules? These rules have consumed the attention and resources of family businesses nationwide since they were first proposed back in August. While we have been assured there is no plan to finalize the rules before the end of the current administration, many families are still wary of their potential impact if they were allowed to take effect. So, will the rules move forward in 2017? Or will the new tax leadership taking control ensure they go away?

Ways & Means Chairman Kevin Brady (R-TX) helped provide clarity on that question …

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admin2019-02-01T19:49:54+00:00November 22, 2016|

Tax Reform Front and Center

Last week’s election changed everything in the tax world, from who’s running Treasury to the prospects for tax reform. We’re still trying to get our heads around all the implications, but the short summary is that S-Corp just went from playing defense all the time (which is not fun, as you can imagine) to being able to focus our efforts on a more positive and proactive agenda (which is much better).

First and foremost, comprehensive tax reform is now on the table, whereas before it was simply not going to happen. Sure, people talked about doing tax reform under a prospective …

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admin2019-02-01T19:49:54+00:00November 18, 2016|