Uncategorized - The S Corporation Association

Pass Through Tax Rates and the 70/30 Rule

Axios reported over the weekend that the tax plan to be rolled out by the “Big Six” Wednesday will call for a 35 percent top rate for individuals, 25 percent for pass through businesses, and 20 percent for corporations.

If true (that’s a big “if” these days with all the misinformation flying around), it’s great news. It would mean both Congress and the Administration have committed to treating Main Street businesses fairly in tax reform. That said, the devil is in the details here. As S-Corp readers know, the challenge in establishing a separate rate for pass through businesses is …

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admin2021-08-16T14:02:29+00:00September 25, 2017|

Tax Reform Plan Forthcoming

After months of meetings, the so-called Big Six are preparing to release some sort of summary of their work the weekend of the 23^rd. The Ways & Means Republicans have a retreat that weekend, and Chairman Brady intends to use the time to sell the plan. The idea is to get the Committee R’s comfortable, and then move on to the broader membership and the public.

What’s in the plan? Recent conflicting accounts over rates suggests it’s still a moving target, but there are a few areas that seem firm.

For starters, we expect it will include a combination of specifics, options, …

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admin2019-01-31T22:48:48+00:00September 15, 2017|

S-Corp Comments on 2704

Monday was the close of the comment period for Treasury Notice 2017-38, and the S Corporation Association joined several other trade groups in submitting our final comments on the pending Section 2704 rules, including our study highlighting the threat these rules pose to family businesses and their employees.

This comment period is the latest in a long saga and we hope it marks the beginning of the end. To recap:

August, 2016 – Treasury issues Notice 2017-38 targeting proposed rules under Section 2704;
November, 2016 – The official comment …

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admin2019-01-31T22:48:48+00:00August 14, 2017|

Tax Reform Statement & Pass Through Taxes

Just in time for the August recess, the House, Senate and the White House released a joint statement yesterday on the status of their tax reform talks and their plans moving forward. You can read the statement here. From our perspective, here are the key points:

“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.”

A primary purpose of the statement was to pivot the tax conversation away from the House Blueprint and the …

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admin2021-08-16T14:02:33+00:00August 1, 2017|

S-Corp Submits Comments

The S Corporation Association submitted the following comments to the Senate Finance Committee today as part of the Committee’s request for input:

The United States is unique among developed countries in the emphasis it places on pass-through business structures – S corporations, partnerships (including limited liability companies), and sole proprietorships. Pass-through businesses make up 95 percent of all U.S. businesses, they employ the majority of private sector workers, and they contribute the majority of business income to our GDP.

This reliance on pass-through businesses is not an accident or a byproduct of other priorities. Rather, it was done purposefully by successive Congresses …

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admin2019-01-31T22:48:48+00:00July 17, 2017|