Commission Agrees to Revisit Draft of State Partnership Tax Rule

The Multistate Tax Commission will reexamine the information reporting standard outlined in its proposed framework governing how states source partnership income across multiple jurisdictions after a professional organization raised objections.

Brian Myers, a partner at Crowe LLP who chairs the American Institute of Certified Public Accountants’ (AICPA) state and local tax technical resource committee, said his members are concerned the commission is opening the door to possibly aggressive state penalty structures for partnerships that fail to meet thresholds for reporting income and loss information to taxpayers and tax agencies.

Myers encouraged the commission to modify its proposal with less ...