A bill to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities.

Bill 119 s 445, also known as the "Personal Service Income Tax Treatment Act," aims to make changes to the Internal Revenue Code of 1986 in order to address the tax treatment of personal service income earned in pass-thru entities.

Pass-thru entities, such as partnerships and S corporations, allow income to pass through to the owners and be taxed at their individual tax rates. However, there has been concern that some individuals are using these entities to avoid paying higher taxes on personal service income.

This bill seeks to ensure that personal service income earned through pass-thru entities is taxed appropriately. It aims to prevent individuals from using these entities to lower their tax liability on income that should be considered personal service income. The specifics of how this will be achieved are not detailed in the summary of the bill. However, it is clear that the goal is to close any loopholes that may exist in the current tax code and ensure that individuals are paying their fair share of taxes on personal service income. Overall, Bill 119 s 445 is focused on addressing potential tax avoidance strategies related to personal service income earned in pass-thru entities and ensuring that individuals are paying the appropriate amount of taxes on this income.