Pass Through Entities Tax Risks

Gain a better understanding of the evolving tax treatment of pass-through entities.

Much of the tax reform debate in the United States centers on the federal corporate income tax. However, many people are not aware that the vast majority of businesses in the U.S. are not subject to the corporate income tax at all.

Over 90 percent of businesses in the United States are pass-through businesses, whose income is reported on the business owners' tax returns and is taxed under the individual income tax. These businesses earn the majority of all business income in the U.S. and employ over half of the private-sector workforce in 49 out of 50 states.

As the tax reform debate heats up in 2017, the question of whether to change the tax treatment of pass-through businesses will pay a central role. This topic will give an overview of pass-through business taxation in the United States, how important pass-through businesses are to the U.S. economy, and different ways in which lawmakers have proposed to change the tax treatment of pass-through businesses at the federal level.

Learning Objectives:

This Live Webinar Covers These Hot Issues:

What Are Pass-Through Businesses?

• The Different Types of Pass-Through Businesses, How Many Are There?
  
• How Many Pass-Through Businesses Are There in the United States?
  
• The Economic Importance of Pass-Through Businesses

The Growth of the Pass-Through Sector

• Pass-Through Businesses Now Earn More Than C Corporations Collectively
  
• The Number of Pass-Through Businesses Have Significantly Grown Over the Last Three Decades
  
• Pass-Through Businesses Now Account for More Than 50% of the Private Sector Labor Force

How Pass-Through Businesses Are Taxed and How Lawmakers Propose to Change It

• Pass-Through Businesses Face One Layer of Taxation While C Corporations Face Two Layers
  
• Rates Can Be Significant-Higher Than 50 Percent in Some States
  
• Lawmakers Have Proposed Changing the Tax Treatment of Pass-Through Businesses
  
  • Some Lawmakers Would Like to Tax PassThrough Income at a Lower Rate Than
  Wage Income
  
  • Some Lawmakers Would Like to Tax PassThrough Income More Like Corporate Income
    
• The Current Tax Treatment of Pass-Through Income Is Ideal and Probably Shouldn't Change

Credit Information (Sponsored by Lorman Education Services):

• CLE
• CPE
• AIPB
• NASBA

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.

Instructor Profile:

Kyle Pomerleau, Tax Foundation

• Director of Federal Projects at the Tax Foundation
• Tax Foundation is the oldest tax policy think tank in America
• Has written dozens of publications on federal and international tax policy
• MPP degree, Georgetown University
• Can be contacted at kep@taxfoundation.org or on Twitter @kpomerleau