The Washington Wire Archive - The S Corporation Association

S-Corp in WSJ

S-Corp President Brian Reardon and Advisory Committee Chair Tom Nichols made the pass-through tax reform case in the pages of the Wall Street Journal on Friday.

The core message of the piece is that businesses both large and small have already voted against the concept of double-taxing business income, and it’s time for the tax code to catch up. As the piece notes:

On paper, the U.S. has a world-wide tax system that imposes two layers of tax on overseas business income—an initial foreign tax when the money is earned and a second U.S. tax when the money is repatriated. In …

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admin2019-02-01T19:56:25+00:00March 1, 2016|

More on the Administration’s Budget

We weren’t the only ones who noticed the President’s budget for 2017 is bad for Main Street Employers. Numerous outlets ran stories (CQ, Bloomberg, and Morningstar) focusing on the negative impact the President’s tax proposals would have on S corporations and other pass-through businesses. As our friends from NFIB noted about the Administration’s proposal to expand the Net Investment Income Tax (NIIT) to all pass-through business owners:

“It’s not closing any gap,” said Nick Karellas, tax counsel at the National Federation of Independent Business. “It’s just blatantly a revenue grab on small-business owners who are actively participating in …

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admin2019-02-01T19:56:25+00:00February 19, 2016|

Administration Budget

The President’s budget is out and, as usual, it includes a number of retread proposals to hike taxes on pass-through businesses, including the Buffett Tax and a big hike in the capital gains tax. We’ve dealt with these in the past.

There is, however, a new tax hike directly targeted at the Main Street Employer next door – an expansion of the Net Investment Income Tax (NIIT) to include all S corporation shareholders and other pass-through business owners.

The NIIT was enacted to help pay for the Affordable Care Act and is designed to tax the investment income of taxpayers …

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admin2019-02-01T19:56:25+00:00February 9, 2016|

Permanent Built-In Gains Relief Passes Congress!

After fifteen years of advocacy, one stimulus bill and three extenders, permanent built-in gains relief is just one short ride down Pennsylvania Avenue away from becoming law!

That’s because the Senate just voted 65-33 on passage of a tax extender bill that included numerous provisions important to the Main Street business community, clearing the way for it to go to the President’s desk, where he plans to sign it.

Getting these provisions made permanent is, to paraphrase Donald Trump, a HUGE deal, and should be the cause of celebration for businesses and tax professionals alike at holiday time. As Politico noted …

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admin2019-02-01T19:59:03+00:00December 18, 2015|

Permanent Built-In Gains in Extender Package

Negotiators agreed to a package of tax and a package of spending provisions last night, and the big news (pun intended) is that the 5-year recognition period for built-in gains (BIG) – something S-Corp has been championing for more than a decade – is made permanent in the tax package! We’re also happy to see that another priority, a basis adjustment to ensure S corporation owners can receive full charitable deductions on contributions, is also made permanent in this package!

The process from here is that the packages introduced last night will be held over for a couple days so members …

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admin2019-02-01T19:59:03+00:00December 16, 2015|