NAIFA and Industry Partners Ask Congress to Clear Up Confusion Over the Tax Reform Law

NAIFA, the Council of Insurance Agents and Brokers, and the Independent Insurance Agents & Brokers of America submitted a statement to the House Ways and Means Committee asking Congress to clarify that the Tax Cuts and Jobs Act signed into law in December permits insurance businesses, including agents, can fully utilize the law’s 20 percent deduction on “qualified business income.”
 
Submitted as part of the record for the committee’s “Hearing on Tax Reform and Small Business: Growing Our Economy and Creating Jobs,” the statement lays out the case that it was the intent of Congress to exclude insurance businesses from the definition of a “specified service trade of business” for which the exemption is either phased out or excluded.
 
According to the associations, there is some “confusion over the proper application of this definition [that] is already creating problems for our members as they file quarterly estimated tax payments.”
 
The associations have also asked the IRS to issue clarification stating that the exclusion covers insurance businesses.
 
  • Posted May 31, 2018 IN


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