No One’s Sure Who Qualifies for This $415 Billion U.S. Tax Deduction
- IRS guidance on pass-through break could miss June deadline
- Veterinarians, massage therapists among those in cross hairs
A woman walks out of the Internal Revenue Service (IRS) headquarters building in Washington.
Photographer: Andrew Harrer/Bloomberg
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Congressional Republicans created a juicy new tax break for business owners when they rewrote the U.S. tax code late last year. Three months later, hundreds of thousands of U.S. employers still don’t know if they qualify.
The Internal Revenue Service has said it will provide guidance detailing exactly who’s allowed to take the so-called pass-through deduction. With billions of dollars at stake, business groups are lobbying for the agency to open the doors to the deduction as widely as possible.