Impact of Recent Tax Legislation on Small Business

Authors

  • Howard R. Tool San Diego State University
  • James E. Williamson San Diego State University
  • Gerald E. Whittenburg San Diego State University

Abstract

This paper discusses selected changes in the tax laws, made in the Summer of J 996, which are expected to have significant impact on small businesses.  The general areas discussed are 1) S Corporations, 2) SIM PLE pension plans, 3) independent contractors, 4) leased employees, 5) expensing qualified small business assets, 6) the work opportunity tax credit, 7) life insurance policy loans, and 8) medical savings accounts. In each case, we first discuss the basic importance of the issue to small business and then briefly discuss some of the technical issues involved in applying the new laws.

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§ 1361(b)( l )(A).

§ 1361(c)( I ).

§ 1361(c)(2)(A)(v).

§ 1361(b)(l )(B).

§ 1361(b)(3).

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1. § 1377(a)(2).

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§ 408(p)( I ).

§ 408(p)(2)(A)(ii).

§ 408(p)(2)(B).

§ 408(p)(3).

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§ 408(p)(5)(C).

§ 40 I (k)(1 1)(A).

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Taxpayers may not rely on a prior audit for tax years after 1 996 unless the audit examined the

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Published

1997-06-16

Issue

Vol. 8 No. 2 (1997)

Section

Articles

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How to Cite

Impact of Recent Tax Legislation on Small Business. (1997). Journal of Small Business Strategy (archive Only), 8(2), 79-91. https://libjournals.mtsu.edu/index.php/jsbs/article/view/371

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