Will LLC tax late payers catch a break?
THERE WERE lots of suggestions at a public hearing last week on rules for collecting the so-called LLC tax. The idea that the state defer interest and penalties for late payers is getting a real close look from Revenue Administration Commissioner Kevin Clougherty. More than 200 people turned out in bitter cold to give Clougherty a piece of their mind. Others gave him valuable advice, he said. “I was delighted with it. We heard from a lot of practitioners, and a lot of people we listened to had plights we hadn’t considered, but they will probably never be affected by this tax,” Clougherty said. As for suspending penalties and interest, he said he’s looking at it seriously, and asked his staff to make sure he has the power to take that action. “In times like this we should be reasonable on issues like that,” he said. The LLC tax is really an extension of the interest and dividends tax, and will apply to money paid out of limited liability companies and partnerships. Salary, or “reasonabl
