House Ways and Means Committee releases pass-through tax reform discussion draft

Washington National Tax Services
House Ways and Means Committee Chairman Dave Camp (R-MI) today issued a “small business” tax reform discussion draft that features proposals affecting large and small partnerships and S corporations.  

The discussion draft includes a proposal to provide a new uniform rule limiting the use of the cash method of accounting to businesses with gross receipts of $10 million or less.

The discussion draft offers two options to modernize the tax treatment of partnerships and S corporations: (Option 1) revisions to Subchapter K and Subchapter S; or (Option 2) a new, unified pass-through regime.

A seven-page summary of the discussion draft identifies several unaddressed issues on which comments are requested, including transition rules and the treatment of mergers, divisions, and reorganizations with respect to a new unified pass-through regime (Option 2).  The Ways and Means Committee also released 134-pages of draft statutory text and a 70-page technical explanation.


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