Tax news for small businesses

Nov 8, 2007

Proposed revisons to the federal tax code may have big implications for freelancers, since some of the changes are directed at S corporations (sole proprietors). The New York Times reports that the Tax Reduction and Reform Act of 2007, which just passed through Congress, would reclassify some business income as personal income. Exactly what effect that will have on freelancers won't be clear for some time, since "the tax bill is unlikely to pass until after the presidential election next year."