Federal Legislation Proposed Impacting Pass-Through Entity Tax

Alongside the AICPA, the OSCPA has issued a critical member call to action in response to proposed federal legislation on the Pass-Through Entity Tax (PTET) that could have serious implications for the CPA profession.

As currently written, the billwould subject specified service trades or businesses (SSTBs)—including accountants, attorneys, dentists, and physicians—to the individual cap on state and local income tax deductions, even through PTET elections. This would apply across all income levels and regardless of where the taxpayer resides, effectively penalizing thousands of professionals and business owners nationwide by increasing taxes on the partners/owners of many service-based businesses, such as accounting firms, discourage the creation and growth of such businesses, and further expand the disparity between C corporations and pass-through entities.

Your Voice is Needed

Members are urged to take immediate action by contacting members of the U.S. Congress and voicing strong opposition to the bill in its current form. 

Learn more about these efforts from the AICPA, download a sample email, and take action by contacting U.S. Congressional members today.