ICBA Meets with White House, OMB on Sub S Deduction
ICBA met with staff from the White House and the Office of Management and Budget on the Treasury Department’s proposed regulation to implement a 20 percent tax deduction for shareholders in Subchapter S banks and other pass-through entities.
Section 199A of the Tax Cuts and Jobs Act generally provides that Sub S shareholders are eligible for the deduction on their qualified business income, though certain “specified services” enumerated in the law are not eligible. ICBA is advocating for a broad interpretation that would ensure all community bank activities are eligible—as it was assured by policymakers while the law was being crafted.
Treasury has submitted its proposal to the OMB before releasing it publicly. Under a new process, OMB has 10 days to review and revise tax regulations before they are published.