Lawmakers, businesses await guidance on tax law
Various groups await a guidance package from the Treasury Department and IRS on a key deduction in the new tax-cut law. This deduction plays a major role in determining how much some business owners can reduce their tax bills.
The guidance is for the 20 percent deduction for income from noncorporate businesses known as “pass-throughs.”
The deduction is complicated, leaving stakeholders unclear how exactly to calculate it and wondering how the IRS will police it.
And there’s a growing need for the guidance to be issued as soon as possible so businesses can plan to find the best way to benefit from the deduction.
“We’re hoping that guidance gets out quickly so that taxpayers can plan how to capture the benefits and to facilitate compliance,” said Debbie Fields, partner-in-charge of the pass-throughs group in the Washington national tax practice of KPMG.