The House Ways & Means Committee holds a hearing today on The Treatment of Closely-Held Businesses in the Context of Tax Reform:
The hearing will examine how the tax code affects closely-held businesses in particular, and how tax reform might improve their ability to grow and create jobs. To this end, the hearing will consider how and under which sets of rules closely-held entities should be taxed, as well as general burdens imposed on closely-held businesses such as high compliance costs and tax rates.
- Jeffrey L. Kwall (Professor, Loyola University School of Law)
- Dewey W. Martin (CPA)
- Tom Nichols (Meissner Tierney Fisher & Nichols)
- Mark Smetana (Chief Financial Officer, Eby-Brown Company)
- Martin A. Sullivan (Contributing Editor, Tax Analysts)
- Stefan F. Tucker (Partner, Venable)
In connection with the hearing, the Joint Committee on Taxation has released Selected Issues Relating to Choice of Business Entity (JCX-20-12):
This document … sets forth data, present Federal tax law, and history, and provides analysis of selected issues relating to taxpayers’ choices of business entities. The first part of this document provides data on passthrough entities and C corporations. The second part of the this document describes present law relating to C corporations along with the types of passthrough entities provided for tax purposes, as well as the current rate structure for individuals and C corporations and the rules relating to social insurance taxes. The second part also provides a chart comparing the features of S corporations3 and partnerships. The third part of this document provides historical background with respect to business entity classification issues. The fourth part of this document analyzes selected issues relating to choice of business entity.
