NF1B 1201 F Street NW, Suite 200 Washington, DC 20004 Via www.regulations.gov and U.S. First Class Mail August 30, 2018 Hon. Steven T. Mnuchin, Secretary c/o CC:PA:LPD:PR (REG-107892-18) Internal Revenue Service (IRS), Room 5203 Department of the Treasury P.O. Box 7604, Ben Franklin Station Washington, DC 20044 Dear Mr. Secretary: RE: Comments on IRS Notice of Proposed Rulemaking titled "Qualified Business Income Deduction," REG-107892-18, 83 Fed. Reg. 40884 (August 16, 2018) The National Federation of Independent Business (NFIB) submits these comments in response to the IRS notice of proposed rulemaking titled "Qualified Business Income Deduction" (NPRM) and published in the Federal Register of August 16, 2018. The NPRM proposed rules to implement Internal Revenue Code (IRC) section 199A, as enacted by the Tax Cuts and Jobs Act (TCJA) and amended by the Consolidated Appropriations Act, 2018.1 This set of NF1B comments in response to the NPRM focuses on proposed rule 26 CFR 1.199A-5(b)(2) as it implements IRC section 199A(d)(2) defining "specified service trade or business" (SSTB) with respect to certain taxpayers in the fields of health and the performing arts. For the convenience of reviewers of these comments, the specific changes to the proposed rules that NFIB recommends and requests appear in boldface type below. NFIB is an incorporated nonprofit association with about 300,000 small and independent business members across America. NFIB protects and advances the ability of Americans to own, operate, and grow their businesses and, in particular, ensures that the governments of the United States and the fifty states hear the voice of small business as they formulate public policies. With respect to TCJA implementing rules, NFIB and its members have a substantial interest in minimizing, to the extent consistent with the law, the burdens of taxation and administration that inhibit business growth and job creation. In addition, many members of NFIB qualify for the deduction under section 199A and therefore have a direct economic interest in how the Department of the Treasury construes and applies section 199A. TCJA, formally known as "An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018," Public Law 115-97 (December 22, 2017), sec. 11011; Consolidated Appropriations Act, 2018, Public Law 115-141 (March 23, 2018), sec. 101 in Division T
2 Table of Contents 1 Operation of Section 199A and the Effect of SSTB Status 2. The Meaning of "Specified Service Trade or Business" Under Section 199A 3. Corrections Needed to Proposed Rules on SSTBs for the Fields of Health and Performing Arts A. Corrections for SSTBs in the Field of Health B. Corrections for SSTBs in the Field of Performing Arts 1. Operation of Section 199A and the Effect of SSTB Status For taxable years beginning after 2017 and before 2026, section 199A generally provides individuals with a deduction of up to 20 percent of their qualified business income (which excludes income received as an employee2) from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust, or estate, except for individuals whose taxable income exceeds a specified "threshold amount," for whom more detailed rules apply.3 For individuals with taxable incomes above the threshold amount, section 199A limits the deduction based on (1) the type of trade or business involved, (2) the amount of wages paid in the trade or business (generally reflected on forms W-2), and (3) the unadjusted basis immediately after acquisition of qualified property held for use in the trade or business. The threshold amount changes over the years with cost-of-living adjustments, but the initial threshold amount, for tax year 2018, is $157,500 (or double, $315,000, for a joint return).4 A handful of key terms in section 199A generally controls eligibility for, and calculation of the amount of, the qualified business income deduction under section 199A. Calculation of the amount that section 199A(a) allows as a qualified business income 2 26 U.S.C. 199A(d)(1)(B) (The term 'qualified trade or business means any trade or business other than... (B) the trade or business of performing services as an employee."). 3 Special rules also apply with respect to income from real estate investment trusts, publicly traded partnerships, and agricultural or horticultural cooperatives. For example, the IRS, after describing the section 199A deduction for qualified business income, states: "Eligible taxpayers may also be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA [unadjusted basis immediately after acquisition] of qualified property." https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-deductionfor-qualified-business-income-faqs (visited August 30, 2018). 4 26 U.S.C. 199A(e)(2) (definition of threshold amount).
3 deduction turns in part on the meaning of the term "combined qualified business income amount."5 The term "combined qualified business income amount" turns in part on the meaning of the term "qualified business income."6 The meaning of the term "qualified business income" turns in part on the meaning of the term "qualified trade or business."' 5 Section 199A(a) provides: (a) ALLOWANCE OF DEDUCTION.--In the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the lesser of-- (1) the combined qualified business income amount of the taxpayer, or (2) an amount equal to 20 percent of the excess (if any) of-- (A) the taxable income of the taxpayer for the taxable year, over (B) the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year. 6 Section 199A(b)(2) provides: (b) COMBINED QUALIFIED BUSINESS INCOME AMOUNT.--For purposes of this section-- (1) IN GENERAL.--The term "combined qualified business income amounf means, with respect to any taxable year, an amount equal to-- (A) the sum of the amounts determined under paragraph (2) for each qualified trade or business carried on by the taxpayer, plus (B) 20 percent of the aggregate amount of the qualified REIT dividends and qualified publicly traded partnership income of the taxpayer for the taxable year. (2) DETERMINATION OF DEDUCTIBLE AMOUNT FOR EACH TRADE OR BUSINESS.--The amount determined under this paragraph with respect to any qualified trade or business is the lesser of-- (A) 20 percent of the taxpayers qualified business income with respect to the qualified trade or business, or (B) the greater of-- (i) 50 percent of the W-2 wages with respect to the qualified trade or business, or (ii) the sum of 25 percent of the W-2 wages with respect to the qualified trade or business, plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property. 'Section 199A(c)(1) provides: (c) QUALIFIED BUSINESS INCOME.--For purposes of this section-- (1) IN GENERAL.--The term "qualified business income" means, for any taxable year, the net amount of qualified items of income, gain, deduction, and loss with respect to any qualified trade or business of the taxpayer. Such term shall not include any qualified REIT dividends or qualified publicly traded partnership income.
4 Finally, the term "qualified trade or business" explicitly excludes any "specified service trade or business" (SSTB).8 Tracking back through the definitions of the various phrases, an SSTB is not a "qualified trade or business," therefore dpes not generate "qualified business income," therefore does not generate income that falls within the term "combined qualified business income amount," and therefore in many cases leaves the taxpayer who receives taxable income from the SSTB without an associated section 199A qualified business income deduction -- unless an exception applies. The statute provides two exceptions to the ban on section 199A qualified business income deductions for SSTB income. The first exception leaves that section 199A deduction in place with respect to individuals with taxable incomes at or below the threshold amount, regardless of whether the income comes from an SSTB or other trade or business.1 The second exception phases out the section 199A deduction for income from SSTBs across a taxable income range that runs from the threshold amount to $50,000 ($100,000 for a joint return) above the threshold amount, i.e., the range of taxable incomes from $157,500 to $207,500 ($315,000 to $415,000 for joint returns).11 The net result of the SSTB definition and its exceptions is: (1) individual taxpayers with taxable incomes of $157,500 or less ($315,000 or less for joint returns) may take the full section 199A deduction, (2) individual taxpayers with taxable incomes between $157,500 and $207,500 (or $315,000 and $415,000 for a joint return) may take a specified percentage of, but lose partly, the section 199A deduction with respect to SSTB income, and (3) individual taxpayers with taxable incomes above $207,500 ($415,000 for a joint return) lose completely the section 199A deduction with respect to SSTB income.12 Section 199A(d)(1) defines "qualified trade or business" as follows: (d) QUALIFIED TRADE OR BUSINESS.--For purposes of this section-- (1) IN GENERAL.--The term "qualified trade or business" means any trade or business other than-- (A) a specified service trade or business, or (B) the trade or business of performing services as an employee. 9 See note 3 above regarding real estate investment trusts and publicly traded partnerships. 10 26 U.S.C. 199A(d)(3). As the Treasury Department states in the NPRM (83 Fed. Reg. at 40895-96): "Under section 199A(d)(3), individuals with taxable income below the threshold amount are not subject to a restriction with respect to SSTBs. Therefore, if an individual or trust has taxable income below the threshold amount, the individual or trust is eligible to receive the deduction under section 199A notwithstanding that a trade or business is an SSTB." " 26 U.S.C. 199A(d)(3). 12 The NPRM describes in detail the effect of being an SSTB in proposed rule 26 CFR 1 199A-5(a)(2).
5 2. The Meaning of "Specified Service Trade or Business" Under Section 199A Section 199A(d)(2) defines the term "specified service trade or business" as follows: (2) SPECIFIED SERVICE TRADE OR BusiNEss.--The term "specified service trade or business" means any trade or business-- (A) which is described in section 1202(e)(3)(A) (applied without regard to the words "engineering, architecture,") or which would be so described if the term "employees or owners" were substituted for "employees" therein, or (B) which involves the performance of services that consist of investing and investment management, trading, or dealing in securities (as defined in section 475(c)(2)), partnership interests, or commodities (as defined in section 475(e)(2)).13 In section 199A(d)(2)(A) Congress, by a cross-reference to IRC section 1202(e)(3)(A), designated as SSTBs only those trades or businesses described in section 1202(e)(3)(A), and then excluded engineering and architecture. Section 1202(e)(3)(A) lists: (A) any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees,[.] Thus, section 199A(d)(2)(A) establishes as SSTBs: any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees or owners. Section 199A(d)(2)(B) then completes the definition of SSTBs by adding: any trade or business that involves performance of services consisting of investing and investment management, trading, or dealing in securities, partnership interests, or commodities.14 13 Proposed regulation 26 CFR 1.199A-1(b)(10) contains the following definition of SSTB: "(10) Specified service trade or business (SSTB) means a specified service trade or business as defined in 1.199A- 5(b). 14 The Treasury Department proposed a de minimis rule, under which a trade or business that otherwise would be treated by the Department as an SSTB will not be so treated if it has gross receipts of $25 million or less in a taxable year and less than 10 percent of those receipts are attributable to performance of the services that otherwise would make it an SSTB. The Department also proposed a de minimis rule involving higher gross receipts, under which a trade or business that otherwise would be treated by the Department as an SSTB will not be so treated if it has gross receipts of more than $25 million in a taxable year and less than 5 percent of those receipts are attributable to the performance of the services that otherwise would make it an SSTB. The de minimis rules appear in the NPRM as proposed 26 CFR 1.199A-5(c)(1).
Section 199A(d)(2) does not direct the Department of the Treasury to expand the crossreferenced list set forth in section 1202(e)(3)(A). Congress simply adopted for a new statutory purpose a list that Congress had created previously in statute for another purpose. In the NPRM, the Treasury Department emphasized: The definition of an SSTB set forth in section 199A incorporates, with modifications, the text of section 1202(e)(3)(A). The text of section 1202(e)(3)(A) substantially tracks the definition of "qualified personal service corporation" under section 448. Therefore, consistent with ordinary rules of statutory construction, the guidance proposed in 1.199A-5(b) is informed by existing interpretations and guidance under both sections 1202 and 448 when relevant.15 The Department's decision, consistent with the ordinary rules of statutory construction, to construe the SSTB provisions of section 199A consistently with existing interpretations and guidance under IRC sections 1202 and 448, matches the legislative intent reflected in the statute and its legislative history. The Statement of Managers of the House-Senate committee of conference associated with the TCJA stated that, with a few modifications, the conference had adopted the Senate version of the SSTB provision and cited in its description of the Senate version Treasury Regulations implementing IRC section 448 as an indicator of the meaning of the services in the health, performing arts, and consulting fields referenced in section 1202(e)(3)(A) as incorporated by section 199A.16 For the most part the rules proposed in the NPRM with regard to SSTBs track statutory text and illuminate the text's meaning with existing interpretations and guidance under sections 1202 and 448. But, for aspects of the proposed SSTB rules defining the fields of health and performing arts, the Treasury Department has exceeded its statutory authority, departed from existing interpretations and guidance under sections 1202 and 448, and acted contrary to the guidance provided by the Statement of Managers. " 83 Fed. Reg. at 40896, col. 2. Section 448(d)(2)(A) of the Internal Revenue Code (26 U.S.C. 448(d)(2)) provides: (2) QUALIFIED PERSONAL SERVICE CORPORATION.--The term "qualified personal service corporation" means any corporation-- (A) substantially all of the activities of which involve the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, and.... 16 "Tax Cuts and Jobs Act," Statement of Managers to the Conference Report to Accompany H.R. 1, H.R. Rept. 115-466 (December 15, 2017), pages 216 (see especially footnotes 44, 45, and 46) and 222 (making clear that the conference agreement followed the Senate amendment, with modifications) ("Statement of Managers"). See Milner v. Department of the Navy, 562 U.S. 562, 572 (2011) (Those of us who make use of legislative history believe that clear evidence of congressional intent may illuminate ambiguous text. We will not take the opposite tack of allowing ambiguous legislative history to muddy clear statutory language.").
7 3. Corrections Needed to Proposed Rules on SSTBs for the Fields of Health and Performing Arts When Congress by statute speaks clearly to a question, the question is settled, but when the statute is silent or leaves the answer to the question ambiguous, an agency charged by Congress to implement the statute may give the statute a reasonable construction in answering the question.17 In giving a reasonable construction to a taxing statute, however, the agency administering the taxing statute must do so recognizing that "such laws are to be interpreted liberally in favor of the taxpayers. 18 In issuing rules implementing the SSTB provisions of section 199A, the Treasury Department must, above all, follow the text of section 199A. With regard to SSTBs, that text (section 199A(d)(2)) incorporated by reference a pre-existing statute (section 1202(e)(3)(A)) that in turn followed largely the text of another pre-existing statute (section 448). Accordingly, the Department stated that, as is consistent with ordinary rules of statutory construction, the Department would apply (as the Statement of Managers indicated it should apply) the relevant existing interpretations and guidance under sections 1202 and 448. As it adopts final rules to implement the SSTB provisions of section 199A, the Department should, in sequence: (1) follow the text of section 199A, (2) as to any matters on which the text of section 199A is silent or ambiguous, provide a reasonable rule based on existing (as of the date of enactment of section 199A) interpretations and guidance under sections 1202 and 448, and (3) as to any matters on which both the text of section 199A is silent or ambiguous and the interpretations and guidance under sections 1202 and 448 provide no help in making a decision, otherwise provide a reasonable rule. When the Treasury Department faces a silent or ambiguous provision in section 199A and must therefore proceed to the second or third of these three steps, the Department must proceed bearing in mind that tax laws "are to be interpreted liberally in favor of the taxpayers." Examining the proposed rules on SSTBs against the text of section 199A and the existing interpretations and guidance under sections 1202 and 448 reveals errors in the proposed rules on SSTBs that the Treasury Department must correct in issuing the final rules. 17 Chevron, U.S.A., inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, rehearing denied, 468 U.S. 1227 (1984); Good Fortune Shipping SA v. Commissioner of Internal Revenue Se/vice, No. 17-1160, 2018 WL 3595945 (D.C. Cir. July 27, 2018). 18 Bowers v. New York & Albany Lighterage Co., 273 U.S. 346, 350 (1927) ("The provision is part of a taxing statute; and such laws are to be interpreted liberally in favor of the taxpayers."); United States v. Merriam, 263 U.S. 179, 187-88 (1923) ("But in statutes levying taxes the literal meaning of words employed is most important for such statutes are not to be extended by implication beyond the clear import of the language used. If the words are doubtful, the doubt must be resolved against the government and in favor of the taxpayer"); and Murphy v. Internal Revenue Service, 493 F. 3d 170, 179 (D.C. Cir. 2007) (recognizing continued vitality of "canon favoring the interpretation of ambiguous revenue-raising statutes in favor of the taxpayer but finding no need to apply it in the case at hand), cert. denied, 553 U.S. 1004 (2008).
8 A. Corrections for SSTBs in the Field of Health IRC Section 199A(d)(2)(A), by incorporating by reference most of IRC section 1202(e)(3)(A), makes clear that the term "specified service trade or business" includes "any trade or business involving the performance of services in the fields of health...." Existing Treasury Regulation 1.448-1T(e)(4)(i)(A), implementing IRC section 448, deals with performance of services in the field of health and is referenced in the Statement of Managers on the TCJA. Existing Treasury Regulation 1.448-1T(e)(4)(i)(A) uses the definition of "services performed in the field of health" set forth in existing Treasury Regulation 1.448-1T(e)(4)(ii), which states: (ii) Meaning of services performed in the field of health. For purposes of paragraph (e)(4)(i)(a) of this section, the performance of services in the field of health means the provision of medical services by physicians, nurses, dentists, and other similar healthcare professionals. The performance of services in the field of health does not include the provision of services not directly related to a medical field, even though the services may purportedly relate to the health of the service recipient. For example, the performance of services in the field of health does not include the operation of health clubs or health spas that provide physical exercise or conditioning to their customers. In comparison, the rule proposed in the NPRM as 26 CFR 1.199A-5(b)(2)(ii) dealing with the field of health states: (ii) Meaning of services performed in the field of health. For purposes of section 199A(d)(2) and paragraph (b)(1)(i) of this section only, the performance of services in the field of health means the provision of medical services by individuals such as physicians, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists and other similar healthcare professionals performing services in their capacity as such who provide medical services directly to a patient (service recipient). The performance of services in the field of health does not include the provision of services not directly related to a medical services field, even though the services provided may purportedly relate to the health of the service recipient. For example, the performance of services in the field of health does not include the operation of health clubs or health spas that provide physical exercise or conditioning to their customers, payment processing, or the research, testing, and manufacture and/or sales of pharmaceuticals or medical devices. Thus, the Treasury Department regulation (T. Reg. 1.448-1T(e)(4)(i)(A)) which formed part of the background against which Congress legislated in enacting the TCJA, and to which the Statement of Managers specifically referred, defined the performance of services in the field of health to mean provision of medical services by physicians, nurses, dentists, and other similar healthcare professionals. The proposed new rule appears to recognize the common characteristic of physicians, nurses, dentists, and other similar healthcare professionals -- namely, the provision of medical services to patients. Although the proposed new rule properly identifies that limiting characteristic,
9 the proposed new rule then ignores it by adding two professions to the list to whom the characteristic does not apply: (1) pharmacists who fill a doctor's prescriptions for a customer in drug stores and provide no medical services to patients, and (2) veterinarians, who do not even provide medical services to any human beings.19 Section 199A did not in any way authorize such an expansion beyond the plain meaning of the term "field of health" that is used in sections 448 and 1202(e)(3)(A). Accordingly, to comply with section 199A and follow the existing interpretations and guidance with respect to section 448, including the guidance referenced in the Statement of Managers on the TCJA, the Treasury Department should revise proposed 26 CFR 1.199A-5(b)(2)(ii) to read as follows: (ii) Meaning of services performed in the field of health. For purposes of section 199A(d)(2) and paragraph (b)(1)(i) of this section only, the performance of services in the field of health means the provision directly to human patients of medical services by physicians, nurses, dentists, and other similar healthcare professionals. The performance of services in the field of health does not include the provision of services not directly related to a medical services field, even though the services provided may purportedly relate to the health of the service recipient. For example, the performance of services in the field of health does not include the operation of health clubs or health spas that provide physical exercise or conditioning to their customers, payment processing, or the research, testing, or manufacture and/or sales, such as sales by pharmacists from retail outlets, of pharmaceuticals or medical devices. B. Corrections for SSTBs in the Field of Performing Arts IRC Section 199A(d)(2)(A), by incorporating by reference most of IRC section 1202(e)(3)(A), makes clear that the term "specified service trade or business" includes "any trade or business involving the performance of services in the fields of... performing arts...." Existing Treasury Regulation 1.448-1T(e)(4)(i)(G), which implements IRC Section 448 and deals with performance of services in the field of performing arts, uses the definition of services performed in the field of performing arts set forth in existing Treasury Regulation 1.448-1T(e)(4)(iii) (also referenced in the Statement of Managers on the TCJA), which states: (iii) Meaning of services performed in the field of performing ads. For purposes of paragraph (e)(4)(i)(g) of this section, the performance of services in the field of the performing arts means the provision of services by actors, actresses, singers, 19 If the Department intended the phrase "who provide medical services directly to a patient (service recipient)" in proposed 26 CFR 1.199A-6(b)(2)(ii) as a limitation on what conduct would trigger SSTB status, rather than merely a description of the activity the listed personnel have in common, the Department should strike from its phrase "who provide" and substitute "if they provide." The revision to 26 CFR 1.199A-5(b)(2)(ii) that NFIB recommends and requests in this letter makes clear that the conduct that triggers SSTB status for the listed personnel is "provision directly to human patients of medical services."
10 musicians, entertainers, and similar artists in their capacity as such. The performance of services in the field of the performing arts does not include the provision of services by persons who themselves are not performing artists (e.g., persons who may manage or promote such artists, and other persons in a trade or business that relates to the performing arts). Similarly, the performance of services in the field of the performing arts does not include the provision of services by persons who broadcast or otherwise disseminate the performances of such artists to members of the public (e.g., employees of a radio station that broadcasts the performances of musicians and singers). Finally, the performance of services in the field of the performing arts does not include the provision of services by athletes. The definition in Treasury Regulation 1.448-1T(e)(4)(iii) of performance of services in the field of performing arts as provision of services by "actors, actresses, singers, musicians, entertainers, and similar artists in their capacity as such" defines a group with a common characteristic -- performing. Section 199A did not in any way authorize an expansion beyond this plain meaning of the term "field of performing arts" that is used in sections 448 and 1202(e)(3)(A). The rule proposed in the NPRM as 26 CFR 1.199A-5(b)(2)(vi) dealing with the field of performing arts states: (vi) Meaning of services performed in the field of performing arts. For purposes of section 199A(d)(2) and paragraph (b)(1)(v) of this section only, the performance of services in the field of the performing ads means the performance of services by individuals who participate in the creation of performing arts, such as actors, singers, musicians, entertainers, directors, and similar professionals performing services in their capacity as such. The performance of services in the field of performing arts does not include the provision of services that do not require skills unique to the creation of performing arts, such as the maintenance and operation of equipment or facilities for use in the performing arts. Similarly, the performance of services in the field of the performing arts does not include the provision of services by persons who broadcast or otherwise disseminate video or audio of performing arts to the public. Thus, the background Treasury Regulation (T. Reg. 1.448-1T(e)(4)(iii)) against which Congress legislated in enacting the TCJA, and to which the Statement of Managers specifically referred, defined the performance of services in the field of performing arts as the provision of services by actors, actresses, singers, musicians, entertainers, and similar artists in their capacity as such. The rule proposed by the NPRM is far broader in scope, extending the meaning of services in the field of performing arts to include all "individuals who participate in the creation of the performing arts," which appears intended to include directors, stage managers, and their assistants, crews, and others who plainly do not perform, an expansion by the Treasury Department that the law does not authorize. Accordingly, to comply with section 199A and follow the existing interpretations and guidance with respect to section 448, including the guidance referenced in the Statement of Managers on the TCJA, the Treasury Department should revise proposed 26 CFR 1.199A-6(b)(2)(vi) to read as follows:
11 (vi) Meaning of services performed in the field of performing arts. For purposes of section 199A(d)(2) and paragraph (b)(1)(v) of this section only, the performance of services in the field of the performing arts means the provision of services by actors, singers, musicians, entertainers, and similar professionals performing services in their capacity as such. The performance of services in the field of performing arts does not include the provision of services that do not require skills unique to the performing arts, such as the maintenance or operation of equipment or facilities for use in the performing arts, management or direction of performing artists, and crew work, such as with respect to the stage, sound, or lighting. Similarly, the performance of services in the field of the performing arts does not include the provision of services by persons who broadcast or otherwise disseminate video or audio of performing arts to the public. By enacting the tax cuts in section 199A of the Tax Cuts and Jobs Act, Congress helped small businesses grow and create jobs. In implementing the TCJA, the Department should make every effort within the law to ease the burden that taxes and the filing of tax returns impose on small businesses. NFIB appreciates the Department's continuing efforts to issue in a timely fashion regulations that assist in implementing the TCJA tax cuts and asks in particular that the Department incorporate the adjustments to the final regulations on the "Qualified Business Income Deduction" recommended above. Sinc el, z-zz David S. Addington Senior Vice President and General Counsel