Printer Friendly

Taxing all corporate income.

Here's an issue many corporate treasurers and accountants haven't heard about. Not only is Congress likely to increase taxes on the corporate income that the IRS is aware of, but there's a likelihood that Congress will also give the IRS a new tool with which to ensure that companies are reporting all income they receive. Look for a proposal this year to require small businesses who file 1099-MISC forms--reporting payments they have made to independent contractors and others--to also file 1099-MISCs for payments made to corporations. Those payments are currently exempt, but the Government Accountability Office (GAO) has reported over the years that it would be easier for the IRS to ensure corporations are paying their fair share of taxes if the IRS had 1099-MISCs for payments to corporations. The latest GAO report, hitting the same notes as previous ones, landed in the Senate Finance Committee in February. The Bush administration had asked Congress to require 1099-MISC reporting for payments to corporations as part of its fiscal 2008 and 2009 budget proposals, but it demurred then. Now facing a $1.5 trillion deficit, Congress may be much more amenable to helping the IRS identify unreported corporate income.
COPYRIGHT 2009 Institute of Management Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:GOVERNMENT
Author:Barlas, Stephen; Beresford, Dennis; Brenne, Gordie; Osheroff, Mike; Williams, Kathy
Publication:Strategic Finance
Article Type:Brief article
Geographic Code:1USA
Date:Apr 1, 2009
Words:197
Previous Article:Obama budget lowers boom on business.
Next Article:CDS bill moves forward.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters