Social Security - The S Corporation Association

AMT Plan Imminent — House & Senate Moving in Different Directions

The Ways & Means held a hearing yesterday on the Alternative Minimum Tax. While there is broad consensus in the tax world that the AMT is broken, there is little common ground on exactly how to go about fixing it. To date, Congress and the Administration have confined their efforts to temporary, one or two year “patches” that raised the AMT exemption just enough to limit the growth of AMT taxpayers. The current higher exemption runs through 2006, however, so Congress needs to act in the next …

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admin2019-02-06T18:46:05+00:00March 8, 2007|

TAX BILL IN LAME DUCK?

Real quick, here’s what we’re hearing on the prospects of tax legislation moving when Congress returns next week:

Congressmen Hastert, Boehner, and Thomas are gathering today to decide what the House tax bill should look like. As we’ve previously reported, the best guess is a narrow bill that extends for a couple years expiring tax provisions like the R&D tax credit, together with some non-controversial trade proposals. Targeted provisions outside the usual extenders may get included, but that’s not clear right now.

On the Senate side, the limiting factor appears to be whatever can get adopted by voice vote. With the Senate …

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admin2019-02-06T18:47:18+00:00December 1, 2006|

Congressional Efforts to Close Tax Gap Means S Corp Payroll Tax Increase Is Still A Threat

Today the Senate Budget Committee held a hearing on “the causes of and solutions for addressing the federal tax gap.” Witnesses included IRS Commissioner Mark Everson, Government Accountability Office Comptroller General David Walker, and Nina Olson, National Taxpayer Advocate. The tax gap is the difference between what taxpayers owe and what they pay (or at least, what they pay on a timely basis).

This hearing stems from the release of the President’s FY07 budget (which makes funding recommendations for the IRS and includes other proposals to improve disclosure and tax administration) and the IRS’ announcement yesterday that the 2001 tax gap …

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admin2019-02-06T18:48:17+00:00February 15, 2006|

S-CORP Fights Proposed Tax Increases As Congress Searches for Revenue

As S-CORP members will recall, this year began with a Joint Committee on Taxation (JCT) proposal to impose a nearly 3 percent additional tax on the full distributable share of profits for S corporation shareholders. The proposed tax would raise an astonishing $57.4 billion over ten years by applying to shareholders of S corporations as well as to partnerships. Then in May, the Department of Treasury’s Inspector General for Tax Administration in testimony before the Senate Finance Committee (May 25, 2005) also endorsed the proposition that the net earnings of S corporations should be subject to payroll taxes. This was …

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admin2019-02-06T18:48:18+00:00October 12, 2005|

S CORP ALLIANCE LETTER: 36 SIGNORS AND COUNTING!

Good news! We’re up to 36 groups on the S Corp Alliance letter (see attached). Thanks to all who signed on in the last week: American Council of Engineering Companies, Associated Builders and Contractors, Associated Industries of Massachusetts, Delaware State Chamber of Commerce, Independent Community Bankers of America, Indiana Manufacturers Association, Louisiana Association of Business and Industry, Michigan Manufacturers Association, Mississippi Manufacturers Association, Nebraska Chamber of Commerce & Industry, Non-ferrous Founders’ Society, Oklahoma State Chamber of Commerce, Utah Manufacturers Association, and Wisconsin Manufacturers & Commerce.

Please remember we’re keeping the letter open, so if you know of any organization that would …

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admin2019-02-06T18:48:18+00:00July 1, 2005|