Email 1: To Secretary of Treasury & other senior officials
Send to: email@example.com; firstname.lastname@example.org; Daniel.M.McCall@irscounsel.treas.gov; email@example.com; firstname.lastname@example.org; Major.Clark@sba.gov; LafayetteChip.Harter@treasury.gov; email@example.com; firstname.lastname@example.org; John.M.Mulvaney@omb.eop.gov; email@example.com; Brent.McIntosh@treasury.gov
Subject: Small business owners demand relief from the draconian Transition/GILTI taxes
Dear Secretary Mnuchin & senior officials of the Treasury, IRS, Office of Management & Budget, Office of Information and Regulatory Affairs, and the Small Business Administration:
As you are well aware, the Transition & GILTI taxes are devastating hundreds of thousands of American small businesses. Knowing this, Treasury granted small businesses relief twice, once in March 2018 and once in June 2018. Yet in issuing the proposed regulations for these two taxes, your agencies knowingly and in bad faith violated the Regulatory Flexibility Act, the Paperwork Reduction Act, the Administration Procedures Act, the Small Business Administration Act, and a few executive orders. It is my understanding that these violations have been pointed out to each of you on numerous occasions. Furthermore, the long-standing violation of these laws by your agencies are confirmed by (i) the 2016 report issued by the U.S. Government Accounting Office (GAO), appropriately titled "Treasury and OMB Need to Reevaluate Long-standing Exemptions of Tax Regulations and Guidance," and the 2005 GAO report titled "Paperwork Reduction Act: New approach may be needed to reduce government burden on Public."
I understand that you and your agencies have repeatedly been offered a variety of ways to solve the 965/951A/962 issues, all which are devastating my business and the businesses of others similarly situated, but that your agencies have rejected or ignored each such offer.
As the final regulations will be published shortly, I ask that your agencies do the right thing.
Copy and paste the email addresses into an email. Sent an email once every two weeks! YES, every two weeks!
To see who these people are, see Step 3 below.
Send to: firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
cc: email@example.com; LafayetteChip.Harter@treasury.gov; firstname.lastname@example.org; john.M.Mulvaney@omb.eop.gov; Brent.McIntosh@treasury.gov; email@example.com; firstname.lastname@example.org
Subject: U.S. Treasury, Secretary Mnuchin personally, and the OIRA/OMB are grossly abusing their power in violation of three federal laws, and devastating hundreds of thousands of American small businesses.
Dear Congressman Cummings and Congresswomen Maloney and the House Oversight committee
I am an American small business owner. The 2017 Tax Cuts and Jobs Act created two new international taxes - the Transition and GILTI taxes. These two taxes were intended for the Googles and Apples of the world, but due to the rapid manner in which the TCJA was adopted, these taxes caught the tiniest one-person businesses in the same net. As a result, these two taxes are devastating hundreds of thousands of small business owners. We small business owners advised Treasury of the problem in early March 2018. Treasury granted us relief twice, in the form of extensions to file & pay these taxes. Secretary Mnuchin personallyapproved the second relief in June 2018.
But then, in August 2018, Treasury issued proposed regulations for these two taxes, in both cases, circumventing the requirements of the Regulatory Flexibility Act (RFA) by Secretary Mnuchin personally certifying in bad faith that the two regulations have no impact on small businesses. See email to Secretary Mnuchin and officers of Treasury/IRS/OMB/OIRA at https://drive.google.com/file/d/19Cz9Cq9QwBs_KqcGfm1fmvs19hFbVYW9/view?usp=sharing
The abusive conduct of the Treasury and other Federal agencies is not new and has in fact been the confirmed by two GAO reports: (i) the 2016 report issued by the U.S. Government Accounting Office (GAO), appropriately titled "Treasury and OMB Need to Reevaluate Long-standing Exemptions of Tax Regulations and Guidance," authored by Senator Hatch!, and (ii) the 2005 GAO report titled "Paperwork Reduction Act (PRA): New approach may be needed to reduce government burden on Public." The reports can be seen at these links. RFA violations:https://drive.google.com/file/d/10OyTZDFFodvlqEgSk_LvWr6TOMQyJVJ5/view?usp=sharing and PRA violations:https://drive.google.com/file/d/1k52yzukzrsLDnx54hLo0V2xAiDuonrNh/view?usp=sharing
We are small business owners. We cannot afford to hire high-paid lobbyists to protect us. We are little people who are completely vulnerable to the abusive conduct of Treasury, the OMB and OIRA. We have no resource but to hope that the House Oversight committee looks into this and makes sure that these agencies follow the RFA & PRA, and stop their unreasonable conduct as set forth in APA 5 USC 706 relating to conduct which is (i) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; (ii) without observance of procedure required by law; and (iii) unsupported by substantial evidence.
Our grassroots movement has generated a significant written record on the above matter and would be more than willing to share it with the committee upon request.
SendRobert_Gardner@schumer.senate.gov; Erin_Vaughn@schumer.senate.gov; Anna_Taylor@schumer.senate.gov; Kara.Getz@mail.house.gov
Subject: Hundreds of thousands of small business owners abroad and in the U.S. devastated by the Transition and GILTI taxes propose a simple free solution for the TCJA technical fix for the Lame Duck session
Dear Senator Schumer, Robert, Erin and Anna
I am an American small business owner. In 2017, the Republicans passed the 2017 Tax Cuts and Jobs Act which created two new international taxes - the Transition and GILTI taxes. These two taxes were intended for the Googles and Apples of the world, but due to the rapid manner in which the TCJA was adopted, these taxes caught the tiniest one-person businesses in the same net. As a result, these two taxes are devastating hundreds of thousands of small business owners. Our grassroots movement tried to get relief from the Republicans in congress and the Republican Treasury. They failed us.
We know that the Democrats did not create these problems, but we know that any technical fix that will be passed in the lame duck session will go through your office. We offer a very simple cost free solution to our problem that could be passed as part of the technical fix.
The solution is:
(i) That individual US shareholders get the same deferral enjoyed by individual shareholders who hold their interests in CFCs via an S corp. (See the terms of the deferral in IRC 965(i). We do not seek a de-minimis exemption, only the IRC 965(i) deferral).
(ii) That individual US shareholders who make the IRC 962 election get the same IRC 260 GILTI deductions that Google and Apple enjoy.
These two new taxes are devastating to us. But to get relief that you can easily sign off on, and which costs nothing, we are asking for the bare minimum that will allow our businesses to survive.
We cannot afford lobbyists. We have nothing but our voice. We hope that you will hear it.