We are pleased to announce the publication of an article written by our Managing Partner, Stephen Wouch, CPA, CFF, entitled “The Tax Burden: Why Contractors Should Be Angry (And Do Something About It)”. This article appears in the May, 2011 issue of “Construction Executive”.
In the article, Steve describes several onerous tax updates that will clearly have a severe negative impact on contractors. Of primary concern is Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) which proposes a 3% government withholding from all payments for goods and services.
At the time of publication, Section 511 was set to become law in 2012. Since that time, however, due to the highly effective protest outlining the potentially devastating economic results of instituting such a withholding requirement, the implementation of this law was delayed until 2013.
Please take a moment to read Steve’s article which describes in plain language the challenges from a tax perspective that continue to be faced by the construction industry as it works to recover from the economic downturn. On the flip side, his article reminds the reader of various favorable estate tax and depreciation rules that should be considered to maximize the benefits of tax planning.
The following is a reprint from Construction Executive, May, 2011, a publication of Associated Builders and Contractors. Copyright 2011. All rights reserved.