The Washington Wire - The S Corporation Association

Talking Taxes in a Truck Episode 32: The State of State Taxes

Congress may have skipped tax policy this year, but the states have been busy. To get an idea of where things stand both good and bad, we talked to Jared Walczak, Vice President of State Projects at the Tax Foundation and one of the more active players in this space. Our conversation starts with the wealth taxes several states have proposed in recent months, the important but ignored Antio case moving through the Washington State courts (look out investors!), and a quick review of the record number of states implementing rate cuts reforms this year (go states!). We close by …

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admin2023-12-09T12:11:35+00:00December 9, 2023|

Join Us: Fines, Jail Time, and Headaches – CTA Compliance Challenges for Main Street Businesses

The Corporate Transparency Act is the most far-reaching data collection mandate you’ve never heard of. Starting January, the new law will require more than 32 million businesses and other legal entities to report the personal information of their owners, key employees, and other individuals to the federal government. 32 million!

The CTA is as complex as it is expansive, yet with less than a month to go, most Main Street businesses remain in the dark about the law’s existence or what they need to do to comply.

Is your landlord a beneficial owner? …

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admin2023-12-08T18:05:34+00:00December 8, 2023|

Save the Tax Code, Save the Country

Save the Tax Code, Save the Country

This week’s Ways and Means hearing adds to the growing conversation focused on “what comes next” for the tax code. Like the residents of a dying planet, the DC tax crowd appears to instinctively understand that something big needs to change if we’re going to survive the decade.

Rumor has it that the hearing was a promise then-Speaker McCarthy made to the Freedom Caucus in exchange for their support of a past effort. The challenge is consumption taxes – the focus of Wednesday’s hearing – are problematic for everybody. On the left, their …

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admin2023-12-07T20:28:33+00:00December 7, 2023|

Crapo on Tax Gap

Senator Mike Crapo, Ranking Member of the Finance Committee, is out with a piece in Tax Notes that highlights the various flaws in recent tax gap estimates. It’s a useful reminder that while these figures are great at generating headlines, they’re a lousy framework on which to base tax policy.

As longtime readers know, we’ve been skeptical of these figures for years. While S-Corp strongly supports policing illegal tax evasion, our message to policymakers has been that it’s wrong and counterproductive to characterize the entire gap as willful evasion.

Senator Crapo shares that skepticism. On the newly-released tax gap …

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admin2023-11-30T17:58:40+00:00November 30, 2023|

No One is Ready for the CTA

Just in time for Thanksgiving, Sunday’s Wall Street Journal’s editorial page highlighted our Main Street letter calling for a one-year delay of the Corporate Transparency Act’s reporting requirements. Appropriately titled The Coming Deluge for Small Business, the article reads:

The CTA assigns the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) with identifying shell companies used for illegal transactions and creating a registry of businesses with less than $5 million in annual sales and fewer than 20 employees.

That describes most small businesses in the country. In a Nov. 16 letter to Congressional leaders, 69 groups representing millions of small …

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admin2023-11-21T15:48:38+00:00November 21, 2023|