The National Council of Farmer Cooperatives is optimistic that Internal Revenue Service officials will adjust the Section 199A tax break, thanks to testimony from the Treasury Secretary, reports Hoosier Ag Today.
For more than two years, farmer cooperatives have been working to re-implement a tax deduction comparable to what they received before the 2017 tax law was passed.
Last summer, the Treasury Department proposed rules that would limit the Section 199A deduction to patronage income. However, the Treasury rule would then eliminate cooperatives’ ability to combine “non-patronage income” as part of the calculations for the tax deduction.
Congress fixed the provision, but the Treasury Department has been bogged down since then trying to complete a rule that would go along with the tax fix.
Read the full report at Hoosier Ag Today.
