Reforming the tax code to assist small businesses: hearing before the Committee on Small Business, House of Representatives, One Hundred Ninth Congress, first session, Washington, DC, September 21, 2005 |
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2004 Annual Report Advocate 2004 Annual Alternative Minimum Tax Assist Small Businesses audit benefit BORDALLO Chairman MANZULLO Committee complexity compliance costs comply corporations economy employees Employer Tax Relief employment tax entrepreneurs Federal Tax Fortenberry health insurance premiums Health Savings Accounts healthcare Hurricane Katrina incentives income tax increased Internal Revenue Code Internal Revenue Service investment issues JEFF FORTENBERRY legislation marginal rates marginal tax rates Mark Everson Medicare micro-businesses million NASE National Taxpayer Advocate NSBA Office of Advocacy partnerships payroll tax penalties percent permanent problems proposals Ranking Member Velazquez Reforming the Tax repeal Report to Congress Section 179 self-employed individuals self-employment tax Small Business Administration small business community small business owners Small Business Tax Small Employer Tax small firms Social Security Sullivan Tax Code Tax Credit tax cut tax policy tax reform Tax Relief Act tax returns Taxpayer Advocate 2004 testimony Thank
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Page 53 - Practice before the Internal Revenue Service" comprehends all matters connected with presentation to the Internal Revenue Service or any of its officers or employees relating to a client's rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service.
Page 35 - Manzullo and Members of the Committee, good afternoon and thank you for giving me the opportunity to appear before you today. My name is Thomas M. Sullivan and I am the Chief Counsel for Advocacy at the US Small Business Administration (SBA).
Page 49 - Corporation (Under section 1 362 of the Internal Revenue Code) >• See Parts II and III on back and the separate instructions. The corporation may either send or fax this form to the IRS. See page 2 of the instructions. OMB No. 1545-0146 Notes: 1 . Do not file Form 1 120S, US Income Tax Return for an S Corporation, for any tax year before the year the election takes effect. 2. This election to be an S corporation can be accepted only if all the tests are met under Who May Elect on page 1 of the...
Page 49 - Subchapter S of the Internal Revenue Code provides for the taxation of closely held incorporated businesses, including the pass-through reporting of certain items to shareholders. To be treated as an S corporation, an incorporated business otherwise meeting the eligibility criteria must make an election on the prescribed form on or before the 15th day of the 3rd month of its tax year. If this election is not made by the statutory date, it is deemed made solely for the succeeding years unless the...
Page 35 - ... determine the impact of the tax structure on small businesses and make legislative and other proposals for altering the tax structure to enable all small businesses to realize their potential for contributing to the improvement of the Nation's economic well-being...
Page 61 - Alternative Minimum Tax Originally designed to ensure that all taxpayers pay a minimum amount of taxes, the Alternative Minimum Tax (AMT) unfairly penalizes businesses that invest heavily in plant, machinery, equipment and other assets. The AMT significantly increases the cost of capital and discourages investment in productivity-enhancing assets by negating many of the capital formation incentives provided under the "regular" tax system, most notably accelerated depreciation. To make matters worse,...
Page 42 - The Office of the Taxpayer Advocate Congress greatly expanded the authority of the Office of the Taxpayer Advocate and the National Taxpayer Advocate in the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98).
Page 60 - ... in-tact, and not affect those employers who have relied on the current statute. One of the most counterproductive taxes currently in existence is the alternative minimum tax. Originally envisioned as a method to ensure that all taxpayers pay a minimum amount of tax, the indi-vidual and corporate AMT penalizes businesses that invest heavily in plant, machinery, equipment, and other assets. To make matters worse, many capital-intensive businesses are perpetually trapped in AMT, as they are unable...
Page 54 - ... such a certification requirement would be costly, and I acknowledge that there would be certain start-up and other costs. However, our recommendation will not require a significant investment in enforcement personnel. We envision a consumer education campaign that utilizes paid advertising, outreach, and partnering with other organizations to deliver two simple messages to tax consumers, who will enforce the program through their market behavior • If you pay for tax preparation, ask to see...
Page 74 - Deduction Increasingly, entrepreneurs are utilizing their home as a primary place of business. According to research commissioned by the SBA Office of Advocacy, home-based businesses represent 52 percent of all firms and provide 10 percent of the total revenue of the economy. Many homebased business owners do not make use of the home office deduction due to the complexity of the deduction and stringent criteria they must meet. The form for the home office deduction is very complicated. The taxpayer...