AMT relief - The S Corporation Association

Lessons from the Failed Senate Energy Tax Package

As reported in the press, last week the Senate failed to add a sizable energy tax package to its comprehensive energy bill prior to adoption.

The Senate voted 57-36 not to end debate (60 votes are needed) on the tax package that was offered as an amendment to the broader energy bill. This vote fell short despite the fact the Finance Committee reported the package out by a bipartisan vote of 15-5 vote just a few days earlier.

While the package itself has little directly affecting S corporations, there are a couple lessons to draw from the challenge Senate leadership is having …

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Small Business Tax Package Signed Into Law

Congress returns this week following its Memorial Day recess. As expected, the Small Business tax package was signed into law along with the Iraqi War funding just before they left. This package included a number of S corporation reforms that we have been working on for years, and represents a significant improvement to the rules governing how S corporations operate.

Key reforms included relief from the dreaded “sting tax” as well as allowing trusts that hold S corporation stock to deduct their interest expenses, something other trusts have long been allowed to do. And while we did not get everything we …

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