The Washington Wire Archive - The S Corporation Association

Main Street Asks Treasury for CTA Relief

Over 120 trade associations today called on the Treasury Department to offer Main Street some relief and certainty by delaying the CTA through at least the end of this year. As the letter sent to Secretary Scott Bessent reads:

Despite massive public awareness campaigns by the groups represented here, as of December 1, 2024 – just one month before a year-end deadline – FinCEN had received less than 30 percent of the required filings. Had the courts not intervened, tens of millions of business owners would have been out of compliance and at risk of felony prosecutions.

The myriad of …

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admin2025-02-04T19:12:23+00:00February 4, 2025|

CTA Update | January 31, 2025

Notable Developments

FinCEN halts CTA enforcement
S-Corp Advisor in the WSJ
Our Latest Podcast with CIR Litigation Director
Delay Bill Reintroduced

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FinCEN Halts CTA Enforcement (Despite SCOTUS Ruling)

Last Friday the Financial Crimes Enforcement Network announced that businesses and covered entities are still not obligated to file under the CTA, so long as the ruling in Smith v. Treasury remains in place. Here’s the alert:

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop …

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admin2025-01-31T19:32:08+00:00January 31, 2025|

The Experts are Wrong (Part V)

Several months ago, we asked Penn Wharton to help us score some ideas on tax reform. They politely declined. Too busy analyzing the 199A deduction, apparently. Their new paper on the deduction makes two points — the first is wrong and the second, while interesting, is not particularly helpful.

Their first point is that “Section 199A provides a 20 percent reduction in the tax rate for qualified business income relative to ordinary income tax rates.” That’s wrong. The Section 199A deduction reduces a pass-through’s Qualified Business Income, not the tax rate. The deduction makes no claims on tax rates.

This mischaracterization …

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admin2025-01-30T17:32:11+00:00January 30, 2025|

Talking Taxes in a Truck Episode 40: Decoding the CTA Legal Fight with Caleb Kruckenberg

The Corporate Transparency Act enforcement has been on quite a roller coaster in the past two months, so Main Street businesses can be forgiven if they have lost track of their filing obligations. To help shed some light on the issue, we’re joined by Caleb Kruckenberg, the Center for Individual Rights’ Litigation Director. Caleb breaks down the latest rulings out of SCOTUS and the Texas Eastern District, the interplay between cases currently being appealed in the Eleventh and Fifth Circuits, additional challenges that have been filed across the country, and the Trump administration’s response.

This episode of Talking Taxes in a …

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admin2025-01-29T17:16:34+00:00January 29, 2025|

The Winds of Change (and Taxes)

The Senate confirmed Scott Bessent to run the Treasury Department yesterday, which means there’s a new sheriff in town. That’s good news for the millions of Main Street businesses targeted by the Biden Administration for higher taxes and more onerous regulations.

But Main Street didn’t have to wait for Bessent’s confirmation to see how the landscape has changed under Trump. We’ve already seen material differences that promise relief now and in the future.

Example one is their approach to Europe’s Pillar 2 minimum tax campaign. Pillar 2 is a poorly disguised effort by the EU to target large US multinationals …

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admin2025-01-28T17:22:04+00:00January 28, 2025|