Accountants Seek Clarity on Tax Treatment of Partnership Income

The American Institute of CPAs wants a multistate initiative crafting rules around fair taxation of partnership income to provide taxpayers with greater clarity on the allocation of such income under each state’s pass-through tax system.

The accounting organization made a series of recommendations to the Multistate Tax Commission’s partnership work group, which has been drafting a research paper and uniform rules addressing the sourcing of partnership income in complex business structures across multiple states. The AICPA generally wants greater consistency in the tax treatment of individual partners and corporate partners, said Brian Myers, a partner at Crowe LLP and ...