Why your company’s tax return got 39 pages longer

Set aside more time, and prep for more questions from the IRS

OPINION:

When it comes time to sign your company’s 2021 tax returns this year, you may notice something: It’s a little bit heftier. For that, you can thank Congress. As part of the 2017 tax overhaul, new filing rules impact just every small and mid-sized “pass-through” business in the country. According to the nonprofit Tax Foundation, more than 90% of U.S. companies are pass-through businesses, which means their earnings “pass-through” to their shareholders’ individual tax returns. Usually, a pass-through entity files a partnership or an “S-Corporation” return. To report those earnings, the shareholders or partners in that firm have traditionally received a Schedule K-1, which allocates to them the share of income they must include on their individual tax returns. But apparently, the company’s earnings are enough anymore. The IRS is now asking for more information to be reported to both shareholders … and the government. READ FULL ARTICLE>>