Law in the Marketplace: For some, an amendment to minimize 2020 taxes Published: 3/13/2021 3:41:15 PM As many readers who are business owners will know, section 199A of the Internal Revenue Code (the IRC) provides owners of “pass-through businesses” (i.e., sole proprietorship, S corporations and entities taxable as partnerships) with an annual federal income tax deduction of up to 20% of their share of the net income of their business. The importance of the section 199A deduction is huge; for many businesses, it can make the difference between business success and failure. Furthermore, although section 199A is due to expire at the end of 2025, both the U.S. Senate and the House have just introduced bills that will make section 199A permanent. In my view, it is virtually certain that these bills will pass, since they will benefit at least 17 million business owners who are receiving section 199A deductions.