Guidance on Section 199A May Halt Benefitting Firms

The Treasury Department may issue guidance on section 199A in response to workarounds taken by law and accounting firms. The new section 199A provides a 20% deduction for qualifying pass-through businesses. Since its enactment, offices have been broken down into separate businesses to take advantage of the deduction; future guidance may halt this technique. According to an official at the Treasury Department, issuing guidance on section 199A is a top priority.

Read more here: Firms Mulling Spinoffs for 20 Percent Deduction: Think Twice.

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