Stressing the importance of clearing identifying qualifications Subchapter S banks must meet to be eligible for a pass-through tax deduction, multiple banking trade associations wrote to the Treasury Department with suggestions for its forthcoming guidance on the matter.
Such guidance will help the Treasury implement Section 199A of the Republican tax plan, which was enacted this past
December, which provides that an individual taxpayer generally can deduct 20 percent of qualified business income from a partnership, S corporation or sole proprietorship.
Read on to learn more about what suggestions the trades included in their letter.