Vince Nardone: Tax and Controversy

Columbus Tax Attorney Vince Nardone Discusses the Worker, Homeownership, and Business Assistance Act of 2009.

On November 6th, Obama signed H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009'' (the Act) into law (P.L. 111-92).  The signing came just one day after the House passed it and two days after the Senate did. In typical Democratic fashion, Obama calls it the business assistance act; however, it is less than favorable.  As an example, the Act stiffens penalties for partnerships and S corporations.

Under the old law, civil penalties apply for failure to file a partnership and S corporation returns. The penalty is $89 times the number of partners or shareholders for each month (or fraction of a month) that the failure continues, up to a maximum of 12 months for returns required to be filed after December 31, 2008.   Under the Act, however, the base amount on which a penalty is computed for a failure with respect to filing either a partnership or S corporation return for a tax year beginning after Dec. 31, 2009, is increased to $195 per partner or shareholder.  According to RIA Checkpoint, “Over the fiscal period 2011 to 2019, this provision is projected to raise $642 million (partnership penalties) and $587 million (S corporation penalties).

Please see the full Act attached.Download Legislation - Worker's, Homeownership Tax Act - November 2009

Columbus Tax Attorney Vince Nardone Discusses the Worker, Homeownership, and Business Assistance Act of 2009.

On November 6th, Obama signed H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009'' (the Act) into law (P.L. 111-92).  The signing came just one day after the House passed it and two days after the Senate did. In typical Democratic fashion, Obama calls it the business assistance act; however, it is less than favorable.  As an example, the Act stiffens penalties for partnerships and S corporations.

Under the old law, civil penalties apply for failure to file a partnership and S corporation returns. The penalty is $89 times the number of partners or shareholders for each month (or fraction of a month) that the failure continues, up to a maximum of 12 months for returns required to be filed after December 31, 2008.   Under the Act, however, the base amount on which a penalty is computed for a failure with respect to filing either a partnership or S corporation return for a tax year beginning after Dec. 31, 2009, is increased to $195 per partner or shareholder.  According to RIA Checkpoint, “Over the fiscal period 2011 to 2019, this provision is projected to raise $642 million (partnership penalties) and $587 million (S corporation penalties).

Please see the full Act attached.Download Legislation - Worker's, Homeownership Tax Act - November 2009