Over the years, the PIA has aggressively advocated for tax relief and tax help for independent insurance agents. These days, the battle is for passthrough entities.
Since the tax reform law (P.L. 115-141) was passed and signed into law in December 2017, we have advocated for the language that was passed by Congress to be interpreted as granting the passthrough tax deduction to insurance agents organized as Subchapter S corporations.
Our efforts paid off when our position was adopted by the U.S. Treasury and the IRS.
Unfortunately, and unlike the permanent deduction for entities organized as C corporations, the passthrough deduction for insurance agents was made temporary in the tax law. As a result, and unless Congress acts, the benefit for PIA members who organize as passthroughs will end on December 31, 2025.
On July 18, Congressman Lloyd Smucker (R-PA) introduced H.R. 4721, the “Main Street Tax Certainty Act of 2023.” The bill’s sponsor in the senate is Sen. Steve Daines of the PIA Western Alliance state of Montana.
If — and hopefully, when — the passed their bills pass, they will make permanent the 20% tax deduction currently available to some passthrough entities.
PIA strongly supports this legislation, and in advance of its introduction joined a coalition of businesses groups in a letter of support for the bill.
The association has developed an action alert that PIA members can send to their Senators and House member asking them to cosponsor the Main Street Tax Certainty Act.
It’s important to grow the number of cosponsors of this legislation so please take action today.
Click here to take action and support the legislation: https://bit.ly/3DBtJZm