The Washington Wire - The S Corporation Association

Business Community Rallies to Defend NOL Relief

On February 2^nd – Groundhog Day, appropriately enough – dozens of Senators and Representatives called on Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer to retroactively repeal the net operating loss (NOL) relief included in last year’s CARES Act.

Their letter claims the NOL relief was a “special-interest” giveaway that was “tucked” into the CARES Act. Neither of these claims is true, as made clear in the most recent business community letter released today and signed by more than 80 trade associations. The provision was requested by the business community, it was widely discussed and understood prior to …

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admin2021-03-05T18:46:33+00:00February 5, 2021|

Bloomberg Is Wrong About Tax Rates

Where does fairness lie? At a time when Main Street is struggling to stay open while Wall Street flies high, you might be surprised that Bloomberg thinks it’s private companies organized as S corporations and partnerships that have the advantage, at least when it comes to taxes.

The Bloomberg story at issue reviewed the 2017 Tax Cuts and Jobs Act and whether it lived up to the promises made by its sponsors, including the goal of balancing out the tax treatment of private and public companies. Here’s the key graph:

“Just in …

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admin2021-03-05T18:46:47+00:00February 1, 2021|

S-Corp Supports MN SALT Parity

The Tax Committee of the Minnesota Senate held a hearing today to discuss legislation (S.F. 263) to restore the full SALT deduction for pass-through businesses. If adopted, Minnesota would become the eighth state to enact our SALT Parity reform.

Among the hearing’s witnesses was S-Corp’s own Tom Nichols, President at Milwaukee-based law firm Meissner Tierney Fisher & Nichols and author of the SALT Parity …

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admin2021-03-05T18:47:00+00:00January 26, 2021|

New York Joins SALT Parity Effort

The good news on SALT Parity keeps rolling in. Just days after California’s Governor signaled his support, New York Governor Andrew Cuomo followed suit and included our pass-through SALT Parity language in his 2022 fiscal year budget proposal.

Since 2018, deductions on state and local taxes (SALT) paid by pass-through business owners have been capped at $10,000. C corporations, on the other hand, are allowed to fully deduct these same expenses. In those states that tax pass-through firms at the owner level, the disparate treatment puts them at a significant disadvantage compared to C corporations.

As S-Corp readers know, beginning …

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admin2021-03-05T18:47:13+00:00January 21, 2021|

CA Governor’s Budget Includes SALT Parity

More good news on the pass-through SALT Parity front: California Gavin Newsom has included our SALT Parity proposal in his budget proposal for 2021.

This news comes on the heels of IRS Notice 2020-75 that confirmed our efforts and made clear to states and businesses that they could adopt SALT Parity legislation without worrying about future regulatory actions.

Seven states have adopted our reform to date (Connecticut, Wisconsin, Oklahoma, Louisiana, Rhode Island, New Jersey, and Maryland). Helped by this announcement, we expect that more than a dozen states will join California in taking up SALT Parity legislation this year. It is …

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admin2021-03-05T18:47:18+00:00January 18, 2021|