Today, Sen. David Vitter (R-La.), Chairman of the Senate Small Business and Entrepreneurship Committee, held a hearing entitled, “Targeted Tax Reform: Solutions to Relieve the Tax Compliance Burdens for America’s Small Businesses.” The hearing discussed various solutions to relieve the burden of tax compliance for small businesses.

Vitter also announced that he has introduced the Small Business Tax Compliance Relief Act, which would provide relief from tax code provisions frequently cited as overly restrictive or onerous for a small business. Vitter has worked directly with small businesses, small business advocacy groups, and pro-business organizations in writing this legislation.

Organizations supporting Vitter’s legislation have said:

“Small businesses collectively spend billions of hours on tax compliance and tens of billions of dollars on compliance costs,” said Nick Karellas, Tax Counsel for the National Federation of Independent Business. “We appreciate Sen. Vitter's work to simplify this process and make sure business owners can focus on their customers, not tax forms.”
“Small businesses, especially here in Louisiana, are our greatest job creators and the driving force behind our economy. Senator Vitter’s legislation will help remove some of the compliance burdens that shackle our small businesses from growing and thriving. Too much money is spent on accounting and navigating a confusing tax code, which is money that could be going into the pockets of new employees or expanded operations,” said Renee Amar with Louisiana Association of Business and Industry
“We applaud the introduction of the Small Business Tax Compliance Relief Act of 2015. These proposals will reduce unnecessary administrative burdens for small businesses and improve overall tax administration”, said Ronald A. Gritz II, CEO, Society of Louisiana Certified Public Accountants. “We also support the important modernization “fixes,” such as removing computer equipment from the definition of “listed property.” Such improvements should reduce small businesses’ compliance costs and encourage voluntary compliance through a simplification of the rules.”
“Everyone in Washington agrees that our tax code must be simpler and work better for small businesses. Senator Vitter's Small Business Tax Compliance Relief Act will make a real difference for small business owners and entrepreneurs who face costly burdens and uncertainty driven by the appalling tax system. We need action, and Senator Vitter's bill is packed with meaningful solutions that will provide true relief,” said Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council
“America’s small firms are clamoring for a more fair, simple and straightforward tax code, and Chairman Vitter’s bill, the Small Business Tax Compliance Relief Act, takes important steps toward that,” stated National Small Business Association President and CEO Todd McCracken. “From allowing the self-employed to fully deduct the cost of their health insurance to increasing cash accounting thresholds to requiring IRS small-business review panels, this legislation is good for small business.”
“As Chairman of the Senate Small Business and Entrepreneurship Committee, we appreciate your hard work to find new ways to increase investment in small businesses. The 1202 qualified small business stock tax provision encourages small business investors to make long term capital investments in small businesses. Modernization of this tax provision will increase opportunities for small businesses to attract capital. [The Small Business Investor Alliance] supports several reforms to the provision to make it more useful, and your legislation would make two of these changes,” said Brett Palmer, President, Small Business Investor Alliance
“The Small Business Tax Compliance Relief Act would reduce the current five year holding period on qualified small business investments to three years. This reduction in the holding period is a welcome change for angel investors and will ensure that early stage angel investors don’t delay a company’s growth trajectory because of a potential tax liability,” said Christopher Mirabile, Chairman, Angel Capital Association
“The AICPA applauds Chairman Vitter for his introduction of the Small Business Tax Compliance Relief Act of 2015,” Troy K. Lewis, chair of the American Institute of CPA’s Tax Executive Committee, stated. “We believe the bill can ease compliance costs and improve the overall tax system for small businesses across the country. These businesses and their tax practitioners are interested in, and need, this type of targeted tax reform.”

-30-