We’ve been patiently (or maybe not so patiently!) awaiting guidance for many of the key provisions in the Tax Cuts & Jobs Act for months now. As July turns to August, we continue the wait.
Of course, IRC § 199A is perhaps the provision that presents the most planning opportunities for many businesses of all sizes. But without guidance for 199A, which provides a 20 percent deduction for “qualified business income” from a “qualified trade or business,” we’re left scratching our heads when it comes to many decisions. We don’t even know halfway through the year what those phrases mean.
It does appear that IRS and Treasury sent three sections of guidance on § 199A to the Office of Management and Budget & Review on July 23. Only one section of that guidance, however, the Computational guidance, shows as “pending review” before the OMB. The other two sections—Anti-abuse and Definitions—(yes, the ones we’re really waiting for) show no such status. It appears that the computational guidance may qualify for an expedited review, which is supposed to be kept to 10 days. We shall see, and will continue to post updates as we get them!
In the meantime, July has brought several less pressing, but still useful, directives:
Don't forget to check our Tax Reform Resources page for a comprehensive look at our resources. It's going to be a busy fall!
Stay tuned!