Proposal That Would Penalize S Corps Dropped From Senate Tax Bill

摘要

A legislative provision that would have increased payroll taxes for small businesses filing as S corporations-including many architecture firms-was eliminated in early August from a bill that sought to boost job creation, close tax loopholes, ensure corporate accountability, and extend unemployment insurance and health benefits.rnThe American Jobs and Closing Tax Loopholes Act of 2010, which has failed to pass in the U.S. Senate several times, has gone through numerous permutations. Most recently, the section addressing professional service S corporation payroll taxes was dropped in an effort to advance the bill.