The American Institute of CPAs crossed swords with Bush Administration officials during congressional hearings on legislation to make Subchapter S corporations more attractive to small businesses.
Testifying on behalf of AICPA’s Tax Executive Committee, PwC Partner Robert A. Zarzar urged the House Ways and Means Subcommittee on Select Revenue Measures to take action to remove some of what the Institute believes are anti-competitive limitations on the growth of existing S corps.
Removing such barriers would double the number of shareholders in an S corporation from 75 to 150, which the AICPA believes is good for small businesses and the economy.
But the White House said such a change would irrevocably alter the nature of S corps as the simplest of business systems for more than one owner.
