The new tax law lowers the corporate tax rate to 21 percent—a change that some lawmakers have suggested could prompt pass-through entities to convert to C corporations.

Michael D'Addio, a principal in the New Haven, Conn., office of Marcum LLP who specializes in federal and state taxation, joins Talking Tax host Allyson Versprille to discuss the possibility of a mass conversion as a result of the different treatment of pass-throughs and C corporations.

Under the new law, pass-through owners can deduct 20 percent of trade or business income. But for high-earning pass-through owners paying the top 37 percent individual tax rate, that averages out to a 29.6 percent tax rate.

D'Addio explains some of the underlying issues that could factor into a pass-through's decision to convert—aside from the upfront tax rates—and why that may not be the best course of action for every taxpayer.