Small Business Tax Simplification Act of 1983

Summary

Small Business Tax Simplification Act of 1983 - Amends the Internal Revenue Code to allow employers who withhold an aggregate amount of FICA and income taxes of less than $5,000 per month to make deposits of such taxes once per month. (Present regulations require deposits eight times per month for employers who withhold an amount of such taxes in excess of $3,000 per month.) Allows a taxpayer to elect to use the cash receipts and disbursements method of accounting without regard to any requirement to use inventories if such taxpayer is a qualified small business for the taxable year and the two preceding taxable years. Defines "qualified small businesses" as any person engaged in a trade or business if: (1) the average annual gross receipts do not exceed $2,000,000; and (2) the active participants in such trade or business own 50 percent of its capital and profits interests or, in the case of a corporation, at least 50 percent of its stock. Limits such election to taxpayers whose inventories do not exceed the reasonable needs of the business. Allows such qualified small businesses to deduct in the current tax year up to $100,000 of its depreciable business assets.

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Timeline

1. 2 November 1983

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 2 November 1983

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 8 November 1983

   Committee

   Committee on Finance requested executive comment from OMB, Treasury Department.

   Source: Committee

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 2 November 1983

  Open at official source

Sponsors

• Rep. Baucus, Max [D-MT-1] · D · Sponsor
• · ssfi00 · Standing

Related records

• related to → Small Business Tax Simplification Act of 1983