Good things do come to small-business owners who wait long enough. In the last session of Congress, lawmakers finally delivered several choice tax benefits to many small companies.
Provisions in two recently enacted tax laws are the source of the good news. One major change, contained in the Small Business Job Protection Act of 1996, will make life easier for about 2 million small companies structured as subchapter S corporations. (We touched on this change in November's "Tax Talk" column but now explain it here in more detail.)
The other reason to cheer is the Taxpayer Bill of Rights II. It expands the arsenal of remedies small-business owners and individual taxpayers can use to resolve tax disputes with the IRS. The statute provides a new passel of rights that will be especially useful in audit situations.