Firms Pass Up Tax Breaks, Citing Hassles, Complexity .

My office took the tax credit for providing our employees health-care coverage.  But wow!  What an effort getting up all of the information required on the Form 1120S.

From The Wall Street Journal:

For years, politicians have used targeted tax breaks to try to influence corporate behavior, offering lower tax bills as an incentive to hire more workers, boost energy efficiency and buy more equipment, among other things.

But executives, particularly at small and medium-size companies, complain that many of the tax deductions are either too cumbersome or too confusing.

The result: many companies are saying "no, thanks" and are likely paying more taxes than legally required. And corporate breaks that Washington hopes will boost the economy often prove ineffective.

A tax credit that Congress enacted in 2010—for small businesses providing health-care coverage—was claimed by only about 170,300 employers, out of an eligible pool of between 1.4 million and four million businesses, according to the Government Accountability Office.

"The calculation was ridiculous," says Barbara Webber, property manager for Presidential Estates in Quincy, Mass., an owner of apartment complexes. Despite an accounting background, she said, "I struggled with it." In the end, she says, she didn't qualify due to IRS wage restrictions.