I wrote this on November 8 on the first draft of the conclusion of my five-part series on the Republican Party's tax reform:
Do I think that a tax bill of this magnitude will be passed in two months? Not a chance. There may be certain provisions that get passed, but as for the entire bill, no way. The Tax Cuts and Jobs Act is almost too ambitious to be passed before year end. However, I would like to discuss some provisions of the bill.
When you are wrong, you are wrong. The bill has passed the House and is up for a vote in the Senate. The Senate’s version will probably pass after Thanksgiving. The bill will go back to the House, this deal will be made, and that deal will be made, and BAM, we have a bill that goes to the president to sign — all of which will probably happen before the end of the year. After the Republicans' crushing defeat of healthcare, they need something.
So, without this interruption, back to what I wrote.
Corporate Tax Reform
I think this is the most interesting part of tax reform. If C-Corporations are taxed at a flat 20% and S-Corporations at a flat 25 percent, then it would appear that the C-Corporation would become the business of choice.
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With S-Corporations, you lose some things like fringe benefits, plus you have to pay reasonable compensation and deal with the other restrictions of the S-Corporation.
About Craig W. Smalley, EA
Craig W. Smalley, MST, EA, has been in practice for almost 23 years. He has been admitted to practice before the IRS as an enrolled agent and has a master's in taxation. He is well-versed in US tax law and US Tax Court cases. He specializes in taxation, entity structuring and restructuring, corporations, partnerships, and individual taxation, as well as representation before the IRS regarding negotiations, audits, and appeals. In his many years of practice, he has been exposed to a variety of businesses and has an excellent knowledge of most industries. He is the CEO and co-founder of CWSEAPA PLLC and Tax Crisis Center LLC; both business have locations in Florida, Delaware, and Nevada. Craig is the current Google small business accounting advisor for the Google Small Business Community. He is a contributor to AccountingWEB and Accounting Today, and has had 12 books published on various topics in taxation. His articles have also been featured in the Chicago Tribune, New York Times, Yahoo Finance, Nasdaq, and several other newspapers, periodicals, and magazines. He has been interviewed and been a featured guest on many radio shows and podcasts. Finally, he is the co-host of Tax Avoidance is Legal, which is a nationally broadcast weekly Internet radio show.