Washington (July 25, 2002) -- Senator Kit Bond said the Treasury Department has hit a home-run for small businesses by agreeing to issue guidance exempting light trucks and vans used in business from current depreciation limits, but urged regulators drafting the new rules to make them broad-based, simple and straightforward.
"American taxpayers, and small enterprises in particular, already are struggling with an abominably complex tax code," said Bond, ranking member of the Senate Committee on Small Business and Entrepreneurship. "This eagerly-awaited guidance is a great opportunity to turn the tide toward simplicity."
In a letter to Pamela Olson, Acting Assistant Treasury Secretary for Tax Policy, and IRS Commissioner Charles O. Rossotti, Bond said the rule needs to be as simple and straight forward as possible. He also urged adopting a rule that will cover as many light trucks and vans used in business as possible, saying: "A broad rule will benefit more small firms by eliminating the depreciation limitations, burdensome calculations, and record keeping imposed by section 280F. Moreover, a broad-based exemption will enable small enterprises to qualify without wrestling with a long list of narrow requirements."
"For small firms such as florists, sales representatives, and contractors, a pick-up truck or van is the heart of the business. With the current cost of automobiles, light trucks, and vans far exceeding current limits, businesses are barred from claiming large amounts of vehicle expenses each year, resulting in significantly higher tax bills," he added.
-- Electronic Accountant Newswire staff
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