tax reform - The S Corporation Association

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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admin2019-02-06T18:46:05+00:00April 19, 2007|

S Corps Wary of Tax Gap Report and Hunt for Revenue Offsets

This week Congress winds up legislative business so that Members can go home and campaign for re-election. Following Election Day, both the House and the Senate will come back for a “Lame Duck” session of Congress. Depending upon the results of the election, it could be a very interesting session.

During the recess, S-CORP will continue educating congressional staff promoting and building support for the pro-S Corp bills introduced this Congress. If there’s an opportunity to include any of these provisions on moving legislation in the Lame Duck session, we want to be prepared!

Also of interest to S-CORP members, this week …

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admin2019-02-06T18:47:19+00:00September 29, 2006|

Senate Finance Committee Holds Tax Gap Hearing

S-CORP continues to closely monitor proposals to increase taxes on S corporations through increased payroll taxes or by repealing the LIFO method of inventory accounting.B On Tuesday, the Senate Finance Committee held a hearing entitled “A Tune-Up on Corporate Tax Issues: What’s Going on Under the Hood?” While most of the testimony focused on the Tax Gap, IRS enforcement, and broad reform of the corporation income tax, one witness focused his remarks and written testimony almost exclusively on why LIFO should be repealed.

Dr. George Plesko, Associate Professor at the University of Connecticut Business School, spent most of his time building …

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admin2019-02-06T18:47:19+00:00June 15, 2006|

IRS Considering More S Corp Guidance

The 2004 American Jobs Creation Act contained numerous S Corp friendly provisions, including increasing the number of allowable S Corp shareholders from 75 to 100 and expanding the definition of a single shareholder to include large families.

According to BNA, the IRS is actively considering issuing additional guidance for some of the provisions (Sections 231 through 240 of the bill), including additional guidance on Section 231 of the Act, which defines which members of a family may be treated as a single S corporation shareholder. This additional guidance was part of the IRS’s business plan for 2005/2006 business year, which ends …

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admin2019-02-06T18:47:20+00:00April 20, 2006|

S-CORP Marked Key Legislative Successes in 2005, Though Major Battles Loom in 2006

With Congress finally home for the holidays, S-CORP has begun to focus on its 2006 agenda. Before we embark on the year ahead, however, we wanted to take a moment to recap for member companies some of our 2005 milestones. The year was extremely active and largely positive for S-CORP and our members. Among the most noteworthy developments we marked were:

Blocking Proposed Payroll Tax Hikes on S Corp Shareholders

As members recall, we began the year with a very real threat to S corporations in the form of two proposals - one from the Treasury Department and another from …

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admin2019-02-06T18:48:17+00:00December 30, 2005|