On Jan. 18, 2019, the IRS issued final regulations implementing Section 199A of the Tax Code, which created a deduction of up to 20% on qualified business income from pass-through entities.
If your agency is organized as a C-corporation the regulation does not impact you. Under the 2017 tax reform law starting with taxable year 2018 C-corporations are subject to a 21%
flat tax and there is no corporate alternative minimum tax (AMT). Prior to 2018 the tax rate for C-corporations was tiered with the highest marginal tax rate being 39%. Approximately
one-third of Big “I” members are C-corporations.