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November 11, 2020

IRS announces plans to issue proposed regulations on deductibility of certain SALT payments by partnerships and S corporations

The IRS has announced (Notice 2020-75) that it will issue proposed regulations clarifying that a partnership or S corporation may deduct, in computing non-separately stated taxable income or loss for a tax year, state and local income taxes imposed on and paid by the partnership or S corporation during the tax year at issue. A Tax Alert is forthcoming.