There’s a concerted effort going on behind the scenes to reinstate the Pass Through Entity Tax Credit to the Senate Version of the One, Big Beautiful Tax Bill which was eliminated in the House Version. For those who don’t know, this is a bypass where owners of Pass Through Entities can deduct their state income tax expenses at the entity level.
Normally these deductions would be limited by the State and Local Tax Limitation on Schedule A of their Personal Income Tax Returns. But by deducting the State Taxes at the entity level, owners can also get a full federal deduction which further reduces their tax loads.
The American Institute of CPA’s and 53 different CPA Societies penned a letter to the ranking members of the Senate Finance Committee arguing that eliminating this loophole was discriminatory in nature. “At a time in which tax reform is focused on job creation and economic growth, this will have the opposite impact,” said the letter.
The letter further stated, “In fact, an analysis by the Tax Foundation shows that the House bill language eliminating the deduction for SSTBs will reduce GDP by 0.2 percent.”
I haven’t seen a concerted effort like this one to affect tax policy in decades. We normally see efforts from a few of the CPA Societies to change this or that in proposed legislation, but not all of them combined.
I will continue to write about this story as it progresses.
Let me leave you with this…
I just had a couple of conversations with new clients that had moved their accounting to our firm. What was interesting was how similar the conversations were.
Both clients basically said, “My business is in flux. Many things are changing with what’s happening in the economy. I have questions and need answers. My old accountant doesn’t know how to return a phone call. And when they do, I have to wait three weeks for them to say that they don’t know the answer and will get back to me. I can’t operate like that.”
What my new clients didn’t know was that I was returning their calls from a hotel in Barcelona.
We take customer service very seriously. I have a dedicated Customer Service Team whose only job is to return emails and telephone calls within fifteen minutes. We can’t always live up to that standard 100% of the time, but we usually do.
Like you, when we have a question, we don’t want to wait three weeks and then not get an answer. But do you actually know an accountant that returns his calls from the South of Spain while on a much needed after tax season vacation?
Whether Julie and I are cruising the Nile, enjoying the Colosseum, or glamping in the Sahara, our clients would never know it. Why? Because their needs are not only met but exceeded.
And isn’t that what customer service is supposed to be? If you have needs, we’d love to hear from you.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.