Propel Your Business Forward Pass-Through Entities and IRS Compliance Strategies

The 2017 tax law created a new deduction for certain income that owners of pass-through businesses (partnerships, S corporations, and sole ... A pass-through business is a sole proprietorship, partnership, or S corporation that reports its income on individual income tax returns. Pass-through income is the profits earned by a business that are distributed to owners and shareholders without the entity paying taxes. Taxes ... The defining characteristic of a pass-through entity (PTE), for tax purposes, is how it “passes” its income through to its owners to be taxed on ... This notice alerts taxpayers and their representatives that the tax benefits purportedly generated by these transactions are not allowable for federal income ... Requires that the pass-through entity file an income tax return and pay the tax on behalf of nonresident members. · Eliminates the option of standard or ... This leaves no deduction at the federal level for any state income taxes. The IRS issued Notice 2020-75 in November 2020, saying that it ... (c) a disregarded entity is not subject to the taxes imposed in Title 15, chapter 30 or 31. (2) Except as otherwise provided, each partner of a partnership ... ... entity's margin and is computed in one of the following ways: ... Total revenue is determined from revenue amounts reported for federal income tax minus statutory ... The deduction allows eligible taxpayers to deduct up to 20 percent of their QBI, plus 20 percent of qualified real estate investment trust (REIT) dividends.