Siding with certain banking trade groups, the Treasury Department and the Internal Revenue Service recently proposed rules and guidance stipulating that banks qualify for a tax deduction created by the enactment of the 2017 tax reform bill to help small businesses.
Treasury stated that “banking” and “financial services” are separate industries, with financial services qualifying as a specified service trade or business (SSTB), unable to access the 20 percent tax deduction for pass-through entities.
Learn what the distinction could mean for the nearly 2,000 banks registered as pass-through businesses.