NYC’s Vision for Taxing Corporate Partners Is Gathering Backlash

New York City has yet to formally propose rules implementing an overhaul of its corporate tax system, but practitioners already are hitting back against one measure said to be under consideration.

Public comments from city tax officials about how they plan to tax corporate partners has some tax professionals arguing the city’s current thinking represents a significant departure from the nearly decade-old state law that prompted the rulemaking process now underway.

The debate over how the city should draft its corporate tax regulations has begun now that changes have been made at the state level. New York State last December ...