Home/Tag: tax gap

President’s Budget is Good for S Corporations, Too Bad Congress will Ignore It

The President’Fs fiscal year 2009 budget was released this morning together with the “Blue Book“ describing his proposed tax policies. Here are a couple thoughts as Congress begins the process of putting together its tax and spending bills for the coming year.

First, the whole process of the President’s budget has a strong element of unfairness to it. For the past three decades, every President has put together a comprehensive annual budget and sent it up to the

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2019-02-06T18:43:58+00:00February 4, 2008|

Accountants Weigh in on Tax Gap

First, the “Big Four” accounting firms weighed in on the Tax Gap. Now, the American Institute of Certified Public Accountants, the trade association for the accounting community, has added its input.

While only 1.3 percent of accountants believe that honest errors are the main source of the Tax Gap — no surprise there, since these are the same folks who prepare our taxes — nearly half suggested the small business community was responsible for the underpayment of the remainder of taxes owed.

The survey is on their website, but just one more reason for the small

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2019-02-06T18:44:37+00:00July 10, 2007|

Tax Bill Offset Tally

To simplify tracking of the various tax bills under consideration by Congress, we’ve put together a chart of what’s moving and what’s being discussed, including separate tax bills on the AMT, energy production, education, housing, family tax relief, children’s health insurance, and international tax provisions.

As you can see, the total cost of the bills contemplated could exceed $1 trillion (!) over ten years. That’s a lot of offsets for Congress to generate, which suggests many of these bills will be delayed and/or scrapped as Congress weighs the benefits of action

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2019-02-06T18:44:38+00:00June 11, 2007|

Another Tax Gap Hearing, Another Standoff

In case you didn’t already catch the Senate Finance Committee hearing featuring Treasury Secretary Henry Paulson yesterday, here’s a quick summary.

The hearing itself was pretty entertaining and highlighted the on-going stand-off between Paulson and Finance Chairman Baucus. Baucus set a timetable for results saying that he wants a 90% voluntary compliance rate by the year 2017 – placing the responsibility on the Treasury to come up with this plan and deliver it in 90 days – July 18th – to the Committee. Paulson responded that he would be more than happy to come

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2019-02-06T18:46:05+00:00April 19, 2007|

Small Business Tax Package Passes Senate for Second Time

It’s getting so you can’t tell the tax bills without a program. The Small Business Tax package that includes the S Corporation Reform tax title has been adopted by the Senate for the second time, this time as a Baucus/Grassley amendment to the Iraqi War supplemental.

An earlier version of this package was adopted as part of the effort to raise the minimum wage. Differences between the House and the Senate stalled that bill, and the House attached its version to the supplemental as a means of breaking the stalemate. What happens now is

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2019-02-06T18:46:05+00:00March 29, 2007|