Federal Legislation Proposed Impacting Pass-Through Entity Tax

Alongside the AICPA, the OSCPA is monitoring proposed federal legislation on the Pass-Through Entity Tax (PTET) that could have serious implications for the CPA profession.

As currently written, the bill would subject specified service trades or businesses (SSTBs)—including accountants, attorneys, dentists, and physicians—to the individual cap on state and local income tax deductions, by eliminating 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 Matters

Last week, OSCPA members spent time in Washington, D.C. discussing this bill and others with U.S. Congress members representing Oklahoma. 

Members can support advocacy efforts by contacting members of the U.S. Congress and voicing strong opposition to this bill in its current form. 

Learn more about the bill from the AICPA, download a sample email, and get involved today by contacting U.S. Congressional members.