Tax cuts bill moving
Article Abstract:
The US House of Representatives unanimously passed a tax cut bill with a few benefits for corporations on May 22, 1996. It is still unclear whether the Senate will add more federal revenue-draining provisions that will make the bill unpalatable to the Clinton administration. Another question is whether a second tax cut bill will be introduced later in the summer of 1996. The bill, H.R. 3448, is being promoted as a scheme aimed at addressing the needs of small businesses, particularly on such areas as pension simplification, greater expensing of equipment and Subchapter S corporations. Big corporations also benefit because the bill extends an expired provision allowing employees to omit a maximum of $5,250 paid by their employers for trade school, college or graduate courses from their taxable income fees. Fees toward graduate courses would be ineligible for tax years beginning on Dec. 31, 1995. The bill also revives the targeted jobs tax credit.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1996
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Seek compromise on independent contractors
Article Abstract:
The US Congress House Ways and Means Subcommittee on Oversight conducted the first of a series of hearings on the independent contractor issue on June 4, 1996. The hearings, chaired by subcommittee chairperson Nancy Johnson, are being held in response to complaints from small and large businesses that the IRS has not been complying with the law when it hit companies with back-tax assessments for misclassifying independent contractors as employees. In theory, employers are cleared if they follow one of two standards: the safe harbor established in Sec. 530 and the 20-factor test. Two bills have already been introduced to clarify the matter but neither one was passed. Rep. Jon Christensen offered an alternative to the safe harbor and 20-factor tests while Rep. Jay Kim proposes stiffer penalties for companies failing to submit Form 1099.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1996
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Wyatt in chief accountant's office
Article Abstract:
Arthur Wyatt has been appointed as senior policy advisor in the chief accountant's office in the SEC. The ex-chairman of the International Accounting Standards Committee (IASC) and former executive at Arthur Andersen will concentrate on issues pertaining to international accounting standards. More particularly, his responsibility will be on determining the extent to which the SEC should recognize financial statements of foreign companies that are based on the financial statement requirements of the IASC and not of the SEC. Wyatt comments that revisions are actually being made to the IASC standards although he admits that the areas of quality and disclosure still needs further improving.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1996
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