Daily Tax Report ®

Much-Debated Rules on Cooperative Write-Offs Nearing Release

May 19, 2020, 2:50 PM

The final version of IRS rules that have spurred a flurry of criticism from accountants, farming groups, and lawmakers is edging closer to release.

The proposed rules (REG-118425-18), released in June 2019, deal with a high-profile correction of a part of the 2017 tax law that unintentionally expanded a pass-through business tax break for farmers who sell their goods to cooperatives. The Office of Information and Regulatory Affairs began reviewing the final rules Monday, in one of the final steps before their release.

The tax law provision provided a 20% write-off to owners of pass-through businesses—such as...

To read the full article log in. To learn more about a subscription click here.