Federal Legislation Proposed Impacting Pass-Through Entity Tax
May 16, 2025
The OSCPA, alongside the AICPA and other societies, is monitoring proposed federal legislation on the Pass-Through Entity Tax (PTET) that could have serious implications for the CPA profession.
The current iteration, which has been approved by the House, would subject specified service trades or businesses (SSTBs)—including accountants, attorneys, dentists, and physicians—to the individual cap on state and local income tax deductions by eliminating PTET elections.
This would apply across all income levels and regardless of where the taxpayer resides, effectively penalizing thousands of professionals and business owners nationwide by increasing taxes on the partners/owners of many service-based businesses, such as accounting firms, discourage the creation and growth of such businesses, and further expand the disparity between C corporations and pass-through entities.
Your Voice Matters
In May, OSCPA members spent time in Washington, D.C. discussing this bill and others with U.S. Congress members representing Oklahoma.
Support advocacy efforts by contacting members of the U.S. Congress by Friday, June 13, and voicing strong opposition to this bill in its current form.
Learn more about the bill from the AICPA and find links below to help you get involved and stay informed: