AICPA Comments on Guidance Regarding Qualified Business Income Deduction

April 12, 2019

Washington, D.C. (April 10, 2019) – The American Institute of CPAs (AICPA) has submitted comments to the U.S. Department of the Treasury and the Internal Revenue Service (IRS) about the guidance regarding the deduction for qualified business income (QBI) under Internal Revenue Code section 199A.  The Treasury Department and IRS provided the guidance in corrected final regulations REG-107892-18 and IRS Notice 2019-17.

The AICPA provided recommendations in the following five areas:

Definition of QBI – Treasury and the IRS should expand Treas. Reg. § 1.199A-3(b)(1) to include items commonly reported by taxpayers owning or benefiting from relevant pass-through entities. Treasury Reg. § 1.199A-3(b)(1) should include a sentence such as, "The following items are among the trade or business items that are or are not taken into account in computing QBI (not an all-inclusive list)."