HR4213 passed the Senate and heads back to the House for approval. I am shocked that so little has been said about its Section 413, which would hit many small businesses with a huge tax increase next year.
The bill supposedly targets “professional services” — its proponents cite doctors and lawyers who are using Subchapter S corporations to pay little or no FICA tax. But, as written, the bill would hit bookkeepers and tax preparers, in-home nurses and nutritionists, paralegals and process servers, freelance computer consultants and athletic trainers. Literally thousands of small service businesses, many of which (like mine) are on the lower end of the income scale, will be faced with as much as double the tax we owed in previous years.
The American Institute of CPAs (AICPA) opposes this change. It notes that the IRS already has the tools it needs to prevent abuse – - it just hasn’t used them.
Small businesses are the backbone of our economy. Hitting us with a tax increase in the middle of a recession is just plain wrong.
Protect small businesses
Deseret News (Salt Lake City), Jul 26, 2010
HR4213 passed the Senate and heads back to the House for approval. I am shocked that so little has been said about its Section 413, which would hit many small businesses with a huge tax increase next year.
The bill supposedly targets “professional services” — its proponents cite doctors and lawyers who are using Subchapter S corporations to pay little or no FICA tax. But, as written, the bill would hit bookkeepers and tax preparers, in-home nurses and nutritionists, paralegals and process servers, freelance computer consultants and athletic trainers. Literally thousands of small service businesses, many of which (like mine) are on the lower end of the income scale, will be faced with as much as double the tax we owed in previous years.
The American Institute of CPAs (AICPA) opposes this change. It notes that the IRS already has the tools it needs to prevent abuse – - it just hasn’t used them.
Small businesses are the backbone of our economy. Hitting us with a tax increase in the middle of a recession is just plain wrong.
D.J
paralegal career