Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: May 13, 2015
The Firm
201-896-4100 info@sh-law.comWhile many advocate creating effective tax reform, a wide range of businesses have sharply reduced their tax liabilities either by not repatriating their active income earned overseas or by harnessing tax breaks, The Fiscal Times reported.
In addition, many companies have changed their corporate structure to become pass through entities – including partnerships, sole proprietorships and S-corporations – in order to lower their tax rates, according to the news source. After making such a shift, organizations must pay individual income tax rates on their earnings, which are lower than those that corporations pay on their profits.
As a rising number of organizations have taken advantage of this opportunity, the tax base has shifted. A Joint Committee on Taxation review produced earlier this year detailed these changes, stating that in fiscal year 2014, corporate income tax receipts were 1.9 percent of gross domestic product. While this figure was slightly higher than the last two years, it fell short of the average fraction since 1950, which is 2.6 percent, according to Reuters.
The JCT report also revealed that businesses filed 1.64 U.S. corporate tax returns in 2012, compared to 2.18 million in 2000, the media outlet reported.
While the number of corporate tax returns has declined over roughly the last 15 years, the IRS has been receiving more returns from sole proprietorships, and these organizations filed 23.5 million such returns in 2012, compared to 17.9 million in 2000, according to the news source. In addition, the returns filed by S-corporations and partnerships increased.
The change in tax revenue provided by these organizations has also been significant, The Fiscal Times reported. Pass through entities generated $1.4 trillion in revenue by 2010, a sharp increase from the figure of $100 billion a year in the 1980s. Urban Institute economist Joe Rosenberg analyzed IRS data, and discovered that business income provided $850 billion worth of adjusted gross income on individual returns.
“It’s really kind of changed the landscape, and it’s made the whole issue of what is the composition of individual taxes very different,” Howard Gleckman, who works for the Urban Institute as a Resident Fellow and is an expert on tax policy, told the news source.
During a recent interview, he emphasized that it is often challenging to differentiate business taxation from the individual tax code, the media outlet reported. Gleckman – and other experts – have stated that because so many businesses have changed their structures, any attempt in creating effective tax reform proposals must account for the shifting landscape.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!