Business owners — and their accountants — can rest a bit easier: the IRS has given them the long-anticipated final word on how they can claim one of the biggest perks in the 2017 Republican tax overhaul.
The regulations detailing the new 20% deduction for pass-through business owners are of critical importance to the operators of such entities, who range from mom-and-pop convenience store owners to private equity investors.
The guidance, issued Jan. 18 despite a four-week partial government shutdown that has many IRS employees on furlough, can cut those business owners' tax bills by as much as one-fifth. The rules would govern what many say is one of the most complex changes in President Donald Trump's tax law.
The IRS made a series of changes to make it simpler for businesses to determine if they can or can't get the tax break, a senior Treasury official said on a call with reporters.