The Coalition submitted comments in response to proposed regulations, published by the Internal Revenue Service, that address section 199A of the Internal Revenue Code of 1986 (the “Code”). Code section 199A contains a new tax deduction – of up to 20% – for certain taxpayers, including many independent contractors. The Coalition is generally supportive of the proposed regulations as they would provide clear and extensive guidance with respect to Code section 199A.
The Coalition’s comments address only one aspect of the proposed regulations, namely, Prop. Treas. Reg. §1.199A-5(d)(3), which would create a presumption that an individual who provides services to a former employer, which are substantially the same as those the individual provided as an employee, is presumed to remain an employee of the former employer for purposes of Code section 199A. The Coalition submits that the presumption should be removed.
CLICK HERE to download the Coalition’s comments.