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

Tax News Update Email this document Print this document

November 11, 2020
2020-2659

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.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

EY US Tax News Update Master Agreement | EY Privacy Statement