Share with your friends

Final regulations under section 199A released to Federal Register

Final regulations under section 199A released

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9847) and proposed regulations (REG--134652-18) under section 199A—the provision enacted under the December 2017 tax law that allows certain owners of sole proprietorships, partnerships, trusts, and S corporations to deduct 20% of their qualified business income.


Related content

Read text of the final regulations [PDF 800 KB] (247 pages) and text of the proposed regulations [PDF 234 KB] under section 199A. These regulations are scheduled to appear in the Federal Register on February 8, 2019.

The final regulations concern and finalize regulations that were proposed in August 2018 and generally apply to tax years ending after the publication of the final regulations in the Federal Register.

Advance versions of final regulations

The IRS and Treasury previously released a version of these final regulations on January 18, 2019 (during the partial government shutdown). That version of the regulations was posted on the IRS website and includes the following statement:

This document will be submitted to the Office of the Federal Register (OFR) for publication. The version of the final rule released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

The IRS and Treasury then issued a replacement version of those regulations on February 1, 2019. Read TaxNewsFlash

KPMG reports on previous versions of these regulations

KPMG previously provided a report containing analysis and observations about the final regulations under section 199A (based on the version of the regulations released by the IRS and Treasury on January 18, 2019). Read TaxNewsFlash

KPMG also previously provided a report containing analysis and observations about the proposed regulations that relate to the treatment under section 199A of dividends paid by real estate investment trusts (REITs). The KPMG report was based on the version of the proposed regulations released by the IRS and Treasury on January 18, 2019. Read TaxNewsFlash

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal