By Stephen L. Nelson –
The new Section 199A deduction surely counts as both a “good news” and a “bad news” story—at least for tax accountants.
The Bad News First.
The bad news about Section 199A? The new deduction, according to the Internal Revenue Service, annually requires 25 million (that’s 25,000,000) hours of additional work for the tax returns of 10 million (10,000,000) small businesses and investors. Further, the statute and just the first wave of proposed regulations confront taxpayers with striking complexity. The statute itself takes ten pages just to describe a tax break for unincorporated taxpayers equal to… read article…