Treasury has its hands full with the new tax overhaul.  As technical comments from the US Chamber, AICPA and S-Corp make clear, the list of necessary guidance for the business community is long and growing.

Common to all three lists is the issue of aggregation.  This technical sounding challenge looms large for businesses trying to calculate their pass-through deduction for 2018.  For many of them, the question of whether to aggregate or not could mean the difference between getting the full 20-percent deduction or not.

To emphasize the importance of this issue, more than 40 trade groups, including the …

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2018 will be a pivotal year for Main Street businesses and the trade groups that represent them.  The 20-percent pass-through deduction is helpful to those businesses that qualify, but it’s availability is limited by income, industry, location, and other “guardrails” so complicated even tax experts are scratching their heads.

Meanwhile, the new federal law precludes most pass-through businesses from deducting their state and local income taxes.  And finally, the 20-percent deduction is scheduled to sunset in a few years, threatening many pass-through businesses with a tax hike in future years.

To help provide policymakers with a better sense of how the Main …

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On Tuesday the Urban-Brookings Tax Policy Center held a forum on the new tax bill entitled “The Tax Cuts and Jobs Act: The new business tax landscape.”  The forum focused on two of the more confusing aspects of the new law – the treatment of pass-through businesses and the treatment of international income.

S-Corp was represented on a panel discussion devoted to the pass-through issues, with S-Corp President Brian Reardon joining Lilian Faulhaber of Georgetown Law and Joseph Rosenberg of the Tax Policy Center.  Reardon made a strong case for the pass-through structure as a preferred mode of business taxation, and …

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Dear S-CORP Member:

Well that was a roller coaster ride.  In just ten weeks, Congress went from being nowhere on tax reform to seeing a massive rewrite of the Tax Code enacted into law.  It was a remarkable accomplishment whose benefits are already being felt in the job and equity markets.  The stock markets like the new tax bill.

But does the new tax bill like Main Street?  That’s a little more complicated.

Thanks to the efforts of your S-Corp team and allies, the final version of the bill is a dramatic improvement over earlier drafts – the new pass-through deduction is larger, …

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