Treasury Issues Proposed Regulations on New 20 Percent Deduction for Pass-Through Businesses

Washington—The U.S. Department of the Treasury (Read More) and Internal Revenue Service (IRS) issued proposed regulations  today implementing a significant provision of the Tax Cuts and Jobs Act, which allows owners of sole proprietorships, partnerships, trusts, and S corporations to deduct 20 percent of their qualified business income.  The proposed rules ensure that this historic tax cut will be available to the broadest spectrum of American businesses, consistent with the law, while minimizing compliance costs and streamlining the process for claiming the deduction.