Tuesday, September 26, 2006

Workers Comp Rate Reduction/ IRS Targets Small Business/ Regulatory Fairness Hearing

From: Scott Hauge
Sent: Monday, September 11, 2006 6:25 AM
To: Small Business California
Subject: Workers Comp Rate Reduction/ IRS Targets Small Business/ Regulatory Fairness Hearing

Last week the Workers Compensation Insurance Rating Bureau announced that they are considering a 6% decrease in pure premium rates January 1 2007.If the WCIRB governing committee accepts this it will be sent to the Insurance Commissioner who will hold a public hearing September 28.
This all could change however if SB 815 gets signed by the Governor. In my email last week I mentioned that this would increase the Permanent Partial Disability schedules and result in an expected 16%plus increase in cost to the workers compensation system over a three year time period. I ask again that you send an email opposing SB815 to michael.prosio@gov.ca.gov and copy Dennis Trinidad at Dennis.Trinidad@OPR.CA.GOV. Please ask them to tell the Governor to veto this bill.
The IRS is targeting small businesses for tax audits. The so called "Tax Gap" is because the IRS believes that self employed and pass through small businesses are not paying what is legally due the IRS.
I was at a board meeting for the National Small Business Association[ NSBA] awhile back and an IRS representative said that he felt over $300 million could be recovered if small businesses were paying the proper IRS taxes.
While I certainly believe that small businesses that are not paying their taxes should do so I and the NSBA are concerned about harassment and intimidation by auditors. The NSBA over the next few months is beginning an initiative to raise awareness about the potential threat to small businesses around the country and will be providing information to inform small businesses about common mistakes in tax preparation. If you have been audited recently please let me know.
I also mentioned in a prior email the Regulatory Fairness Hearing in Sacramento. I just received a correction on this. It will be September 29 at the Sacramento Convention Center at 1401 J Street, Room 101 Sacramento. The registration is at 1:30 and the hearing from 2to 4. If you want to testify or submit something in writing you can contact Mary Conway-Jespen of the SBA Sacramento District Office at 916-930-3712 or email her at mary.conway-jespen@sba.gov

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