Treasury Looks To Ease Installment Tax Impact On Agents.(U.S. Treasury Department )(Brief Article)

National Underwriter Property & Casualty-Risk & Benefits Management, March, 2000 by BROSTOFF, STEVEN

The U.S. Treasury Department said it is ready to work with Congress to find a way to ease the impact of a recently enacted tax provision that significantly reduces the sale value of certain insurance agencies and other businesses. "Overall, we believe the policy underlying the legislation is appropriate," said Joseph Mikrut, tax legislative counsel for Treasury.

The law at issue bars accrual-basis taxpayers from deferring income on the sale of a business sold on an installment basis. Mr. Mikrut said Treasury still believes that the installment method is inconsistent with accrual accounting. "However, we now understand that the legislation has imposed financial burdens on small businesses that override this basic tax policy concern," he said last week at a...

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