Officials recently held a public hearing on the 20 percent pass-through tax deduction.
The IRS Held A Public Hearing About The New 20 Percent Pass-Through Deduction
The IRS held a public hearing about the new 20 percent deduction for certain “pass-through” businesses. In attendance were representatives from the American Institute of CPAs and the National Association of Realtors. Both industries are still unsure about positioning under the new code.
Small banks are also apprehensive about aspects of the tax code. Steve Lewis, a bank chairman, explained:
“If we are not able to include revenue from…core banking services [such as loan sales and trust and investment-management services] in [the] qualified business income deduction, it would clearly place our bank and our holding company at a disadvantage to those C-corporation banks that are taxed at a 21-percent corporate tax rate.”
Representatives from the human resources industry also spoke at the event. As was the case with many attendees, their primary concern was 20 percent pass-through qualifications.
Spokespeople for the American Veterinary Medical Association lobbied that vets are different than human doctors, have different costs, and should therefore be eligible for the deduction.
The IRS has promised to publish clarifying remarks by the end of the year.
Connect With An Illinois Tax Lawyer
In the meantime, if you’re an Illinoisan with questions about the new tax code, give us a call. Gordon Law Group works with individuals and businesses on all manners of tax issues. Whether you just need help with regular filings or you’re grappling with a debt or IRS investigation, we’re here to help.