The Washington Wire Archive

/The Washington Wire Archive

S-Corp Member Survey 2019

S-Corp sent its members a new survey this Spring.  The goal was to follow up the survey we did just after tax reform was enacted to see how things had evolved.  Now that our members had a year to digest the new rules, where did they stand?  Here are the key takeaways – Seven out of ten say their taxes went down or stayed about the same; Four out of five say making permanent the 20-percent 199A deduction is a priority; and Seven out of ten plan to remain S corporations in the near future. That’s not bad, considering where ...

(Read More)

S-Corp Member Survey 20192019-07-30T15:41:30+00:00

The Myth of Corporate Decline

The visual economist issued another great chart last month, this time showing the largest public companies by market cap. Our first reaction is, wait, Microsoft is number one?  When did that happen?  All the focus on FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) and stodgy old Microsoft is bigger?  Go figure. Our second reaction is “Gee Grandmother, what big market caps you have.”  These companies are huge!  And that’s not limited to the ten companies illustrated here.  Measured against GDP, the market cap of all public companies in the US has tripled since 1986. The irony is that this ...

(Read More)

The Myth of Corporate Decline2019-07-26T16:50:37+00:00

Joe Biden’s S-Corp

What is it about Presidential candidates and S corporations?  First John Edwards made the practice of abusing the S corporation structure infamous back in 2004.  Then we learned Newt Gingrich did the same thing when he ran in 2012.  And now Joe Biden.  At some point, these candidates are going to realize that saving 3.8 percent on your taxes isn’t worth the political pain it will cost you.  (Hat tip to Bernie Sanders and former President Obama.) For those not up to speed, the former Vice President and his wife released their tax returns this week.  Focusing on his 2017 ...

(Read More)

Joe Biden’s S-Corp2019-07-11T18:27:43+00:00

Progress on S-Corp SALT Parity Efforts

The House Select Revenue Subcommittee held a hearing today entitled “How Recent Limitations to the SALT Deduction Harm Communities, Schools, First Responders, and Housing Values.” Missing from the list are Main Street Employers, many of whom lost the ability to deduct the State and local taxes they pay on their business income. That’s because tax reform subjected deductions on state and local taxes (SALT) paid by pass-through business owners to the same $10,000 cap as taxes paid on wages and property.  Taxes paid by the business entities themselves, like C corporations, remain fully deductible. Since most states tax pass-through businesses ...

(Read More)

Progress on S-Corp SALT Parity Efforts2019-06-25T21:54:41+00:00

S-Corp Comments on Section 4960 Excise Tax

The S Corporation Association sent comments to the Department of Treasury today raising concerns that recent guidance it published has the potential to impose the new, Section 4960 excise tax onto private operating companies. The tax is supposed to be targeted at big non-profits and universities that pay their executives and coaches salaries in excess of $1 million per year, but due to expansive definitions of “employee” and “related organization” included in the department’s guidance (Notice 2019-09), the tax could be paid by many family businesses with related foundations and other charities instead. Worse, the new law is written in ...

(Read More)

S-Corp Comments on Section 4960 Excise Tax2019-05-29T14:58:59+00:00