Business News
Congressman Aaron Schock (R-IL) and Congressman Mike Thompson (D-CA), both of the Ways & Means Committee, on Tuesday praised the inclusion of the Small Business Accounting and Tax Simplification Act in the House Ways and Means small business tax reform discussion draft.
The Schock-Thompson legislation, H.R. 947, would allow small businesses with up to $10 million in gross receipts to be eligible for a more simplified accounting and tax filing method with the Internal Revenue Service (IRS).
Under current law, most businesses are required to use accrual accounting when filing their taxes with the IRS.
For many small businesses, the alternative cash-basis method offers more flexibility in tax planning, since cash accounting is a simplified method that more accurately reflects the way a business collects income and claims expenses for business purposes.
“With a bloated tax code, which stands at over 70,000 pages, small businesses are put at a disadvantage when it comes to dealing with the IRS,” said Schock. “By expanding the eligibility for small businesses to use cash accounting, we will provide them with a vital tool to save time and money, and allow these entrepreneurs to focus more on growing their business than complying with complex IRS regulations.”
“No matter which side of the aisle you’re on, we should all be able to agree that simplifying taxes for small businesses is good policy,” said Thompson. “That’s what our bill is about. It will save small businesses time, paperwork and headaches during tax season by expanding cash accounting, allowing them to focus their efforts on what they do best – growing their business – not on complicated accounting practices.”
“One key provision included in today’s discussion draft is based on a provision championed by Congressmen Schock and Thompson that is aimed at simplifying and expanding the use of cash accounting for small businesses. Allowing businesses with $10 million or less in gross receipts to use cash accounting can simplify their tax compliance efforts so that they can use their time, energy and resources in a more effective way – toward growing their business. Aaron and Mike’s commonsense proposal will ease the burden that too many face as they struggle with today’s broken tax code and is a step toward the fairness and simplicity that small businesses need and want,” said Chairman Camp.
According to the National Federation of Independent Business small businesses spend annually between 1.7 billion and 1.8 billion hours on tax compliance and $18 billion to $19 billion on compliance costs.
The result is that 88 percent of small business owners hire a paid tax preparer to complete their returns.
“This expansion of the availability of cash accounting for tax purposes will help simplify tax filing and reduce the paperwork burden for many small businesses,” said Dan Danner, president and CEO of the National Federation of Independent Business. “NFIB and its members would like to thank Congressmen Schock and Thompson for this common-sense approach to helping job creators operate as efficiently as possible during this time of economic recovery. It will certainly help make it easier for many small businesses to grow and create jobs.”
As part of the Ways and Means committee’s broader effort on comprehensive tax reform, Chairman Dave Camp (R-MI) on Tuesday released the small business tax reform discussion draft. Reforming the tax code for small business will be a significant part of any tax reform package.
Eight out of 10 businesses file their taxes as individuals, not as corporations and the pass-through model of small businesses (Sole proprietorships, S-corps, LLCs and Partnerships) has tripled from 10.9 to 30 million over the past 30 years. These pass-through businesses should be afforded flexible tax and accounting rules that reflect their needs for current cash flow to finance operations.
“One key provision included in today’s discussion draft is based on a provision championed by Congressmen Schock and Thompson that is aimed at simplifying and expanding the use of cash accounting for small businesses. Allowing businesses with $10 million or less in gross receipts to use cash accounting can simplify their tax compliance efforts so that they can use their time, energy and resources in a more effective way – toward growing their business. Aaron and Mike’s commonsense proposal will ease the burden that too many face as they struggle with today’s broken tax code and is a step toward the fairness and simplicity that small businesses need and want,” said Chairman Dave Camp.
“Employers who pay their business taxes as individuals account for 54 percent of all private sector employment in the U.S. Our country’s ability to put people back to work is proportional to how we treat small businesses under the tax code and how we provide employers with the flexibility they need to focus on building a business’s versus dealing with a burdensome tax system. This discussion draft will allow the committee to continue its work toward creating a fairer tax system that doesn’t penalize success and will help grow our economy at the same time,” added Schock.
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KELSEYVILLE, Calif. – While chilly temperatures are a reminder that summer is still a few months away, a new wine-oriented promotion invites adults to experience “Summertime in a Glass.”
The Lake County Winegrape Commission is working closely with Bryan Dias, a marketing consultant with Dias Associates Consulting, to launch the marketing campaign focusing on the Sauvignon Blanc varietal.
Dias obtained a Specialty Crop Block Grant from the California Department of Food and Agriculture to help fund activities of a newly formed advocacy organization entitled “Summertime in a Glass.”
The group was founded with the idea of a campaign to raise awareness for California’s Sauvignon Blanc winegrapes, he said.
“Increased competition from foreign producers, such as Chile and New Zealand, coupled with a competitive price point from these areas, has caused strain on California Sauvignon Blanc,” Dias wrote in the grant proposal. “It’s a misunderstood varietal by consumers, often perceived as a ‘food-only’ wine and not a ‘porch’ or ‘cocktail’ wine. Similarly, outside of a few local regions, it is not seen as popular or economically competitive or desirable by wineries. This project seeks to address these issues through education and awareness for California Sauvignon Blanc.”
Lake County has served as a pilot region for the “Summertime in a Glass” campaign, and the Winegrape Commission is committing in-kind support to the promotional effort.
“We are excited to be involved in this project,” said Lake County Winegrape Commission President Debra Sommerfield. “It promises to be beneficial to our Sauvignon Blanc winegrape growers as well as the wine industry as a whole. We are optimistic about the economic benefits to our region and to other California winegrape regions.”
Dias stated, “Though much of our initial focus will be centered on California and Lake County, in particular, it is hoped that the organization and campaign will grow to encompass, support and appeal to a broader world of Sauvignon Blanc.”
“Summertime in a Glass” appeals to both the industry and consumer sides of the product, he said. “We are looking to rebrand the varietal, to get it out there with events, social media, the Internet.”
The three- to five-year plan will use cost-effective marketing, education and outreach programs including electronic media, targeted events and a media campaign, Dias said.
“We will seek to educate consumers about the wine through interesting and useful content, such as wine reviews, food pairing tips and wine enthusiast tailored information about the varietal and its diversity,” Dias wrote in the grant application. “For the wine industry, we will educate wineries on promoting the varietal, differences in style and approach in winemaking and market/industry trends that can be used in business development, planning and strategy. We will also, eventually, seek to raise awareness in non-California wineries about the varietal in order to promote out-of-state sales of Sauvignon Blanc.”
To implement the plan, an advisory board will be formed.
Since Lake County is a primary partner in the project, potential board members are sought from the area, said Dias.
“We want to work with people who share the vision,” he said.
In addition, Dias seeks an intern to assist with the campaign’s promotional activities. A job description is available via the “Summertime in a Glass” Web site.
For more information about the campaign, visit the Web site, www.SummertimeInAGlass.org .
For additional information about the Lake County Winegrape Commission, visit the agency’s Web site at www.lakecountywinegrape.org or call the commission office, 707-279-2633.
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- Written by: Lake County News Reports
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