Tim Sundstrom, a member of the NSA Federal Taxation Committee and John Ams, NSA Executive VP, met with IRS officials including Acting Commissioner Dave Kautter to urge them to issue guidance on issues raised in the tax reform bill as soon as possible, particularly with respect to the much-discussed Section 199A.
Sundstrom raised a number of technical issues about the application of the 20% rule as well as how to determine whether an entity’s principal asset is the skill or reputation of one or more of its owners or employees. Ams pointed out that many small businesses could be disqualified from claiming the deduction unless the determination of skill or reputation is defined objectively and not subject to the opinion of an IRS auditor.
Kautter mentioned that Treasury was preparing to ask for $397 million to implement tax reform and that guidance on Section 199A would likely be issued in the summer. Ams pointed out that the positions taken in such guidance could be a determining factor in a taxpayer’s election to conduct business as a C corporation or some form of passthrough entity. Since such elections need be made by March 15; well before Section 199A guidance is issued, Ams requested an extension of time to make entity election until September 15.
The US Court of Appeals for the DC Circuit today upheld the IRS Annual Filing Season Program, finding that the IRS had the legislative authority to develop and implement the Program under existing statute. ...
Notice 2018-64 proposes a revenue procedure that provides guidance on methods for calculating W-2 wages for purposes of section 199A of the Internal Revenue Code (Code) and proposed §§ 1.199A-1 through ...
The IRS released the long-awaited guidance for 199-A, Qualified Business Income (QBI), this morning. This release contains proposed regulations concerning the 20% QBI deduction that impacts small businesses, ...
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