The Washington Wire - The S Corporation Association

S-Corp Modernization Introduced in the House

Good news for the S corporation community! Ways and Means Member Brad Wenstrup (R-OH) has introduced the S Corporation Modernization Act of 2024 (H.R. 8614). S-Corp Mod has a long history of simplifying the rules for Main Street businesses and helping the Main Street businesses be more competitive as they remain in the family.

The introduction of this year’s bill will help S-Corp move forward on a list of technical tax provisions important to the country’s 5 million S corporations, including:

Increasing their access to capital;
Expanding the list of eligible shareholders to include more employees, non-resident aliens, and retirement …

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admin2024-06-05T14:04:22+00:00June 5, 2024|

Wait, What???

Under the category of “Care to elaborate?” this month’s CBO analysis of the fiscal cliff costs includes estimates of the Section 461(l) excess loss provision that are, shall we say, significantly revised. The new numbers are much more believable, but they do beg the question of what took the JCT so long to rework their original estimates.

To review, the TCJA capped the ability of pass-through business owners to deduct their active business losses. Under the old rules, those losses could immediately offset other forms of owner income (wages, capital gains, investment income, other business income, etc.). This approach …

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admin2024-05-28T20:13:26+00:00May 28, 2024|

The Bull Case for a Bipartisan Fiscal Cliff Deal

For years we’ve been sounding the alarm over the 2025 “fiscal cliff,” a watershed moment that will force lawmakers to address a litany of expiring tax provisions or risk a massive tax hike on families and Main Street businesses. Below is a look at what’s at stake for Main Street businesses and our bull case for Congress taking action next year.

Sunsets and Families

One TCJA myth is that it benefited big corporates and billionaires only. That’s simply not true. Much of the tax relief targeted at corporations and wealthy individuals was paired with significant revenue raisers, while the tax relief targeting …

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admin2024-05-20T13:30:13+00:00May 20, 2024|

Talking Taxes in a Truck Episode 37: Carol Roth Explains Why It’s Time to Repeal the CTA

Our latest podcast guest is Carol Roth, a New York Times bestselling author, small business advocate and most recently, a staunch ally in the fight to repeal the burdensome and ill-conceived Corporate Transparency Act.

Carol starts by talking about how her time in the investment banking world exposed her to the uneven playing field between small businesses and larger corporations, and how that experience led her to become a Main Street advocate. Later she dives deep into the CTA and its onerous reporting requirements, her recent testimony on Capitol Hill that focused on the new statute, and the many compliance horror …

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admin2024-05-06T21:57:34+00:00May 6, 2024|

House Small Business on CTA

With the Corporate Transparency Act in effect for several months now, the House Small Business Committee convened to discuss how the rollout of the new law is going. The short answer – not so good.

The hearing featured testimony from three small business stakeholders who covered everything from compliance costs to legal and cybersecurity risks posed by the reporting requirements.

The first witness was Carol Roth, whose advocacy on behalf of the Main Street business community we’ve covered previously. Asked by Congressman Dan Meuser whether Treasury had reached out to affected …

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admin2024-04-30T20:51:56+00:00April 30, 2024|