The Washington Wire Archive - The S Corporation Association

Congressional Efforts to Close Tax Gap Means S Corp Payroll Tax Increase Is Still A Threat

Today the Senate Budget Committee held a hearing on “the causes of and solutions for addressing the federal tax gap.” Witnesses included IRS Commissioner Mark Everson, Government Accountability Office Comptroller General David Walker, and Nina Olson, National Taxpayer Advocate. The tax gap is the difference between what taxpayers owe and what they pay (or at least, what they pay on a timely basis).

This hearing stems from the release of the President’s FY07 budget (which makes funding recommendations for the IRS and includes other proposals to improve disclosure and tax administration) and the IRS’ announcement yesterday that the 2001 tax gap …

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admin2019-02-06T18:48:17+00:00February 15, 2006|

The President’s Budget

One of the challenges of political advocacy is to separate real from imagined threats. For S Corps, the threat of increasing payroll taxes on S Corp profits continues to be very real indeed, despite the best efforts of a broad coalition of business groups to educate policy makers on why the proposals on the table are bad policy and bad economics. For example, the attached BNA story is about a relatively narrow proposal in the President’s new budget to increase collections of payroll taxes from companies that lease employees to other businesses.

At first blush, it’s not really about S Corps. …

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admin2019-02-06T18:48:17+00:00February 10, 2006|

Political Landscape of 2nd Session of the 109th Congress

The second session of the 109th Congress has begun! The Senate was in session for a portion of January to consider President Bush’s nomination of Samuel Alito to the Supreme Court with the final vote to confirm him occurring on January 31st. Both the House and the Senate returned in earnest to legislative business that day which was also the day of the President’s State of the Union address. This week the President unveils his FY 2007 budget proposal which is likely to include new initiatives for energy independence and healthcare affordability.
First and foremost on the minds of House Republicans …

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admin2019-02-06T18:48:17+00:00February 6, 2006|

S-CORP Marked Key Legislative Successes in 2005, Though Major Battles Loom in 2006

With Congress finally home for the holidays, S-CORP has begun to focus on its 2006 agenda. Before we embark on the year ahead, however, we wanted to take a moment to recap for member companies some of our 2005 milestones. The year was extremely active and largely positive for S-CORP and our members. Among the most noteworthy developments we marked were:

Blocking Proposed Payroll Tax Hikes on S Corp Shareholders

As members recall, we began the year with a very real threat to S corporations in the form of two proposals - one from the Treasury Department and another from …

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admin2019-02-06T18:48:17+00:00December 30, 2005|

S-CORP Victory in Senate Tax Bill; S Corporation Reform Legislation Introduced in the House!

November has been an active and exciting month for the S Corporation Association and we have much to be thankful for:

TWO S corporation modernization provisions approved by the Senate as part of a larger tax package
Efforts to oppose increased payroll taxes on S corporations continue to be successful
Congressman Clay Shaw along with Congressman Jim Ramstad introduce S corporation reform legislation in the House
Joint Committee on Taxation estimates revenue loss on built-in gains tax relief legislation

Before adjourning for a three-week recess, the Senate approved its reconciliation tax package that includes two provisions from the Subchapter S modernization and reform bill that …

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admin2019-02-06T18:48:18+00:00November 29, 2005|