Witnesses Slam Corporate Book-Tax Regs’ Approach to Partnerships

The way that the Treasury Department and IRS want to handle partnership income under the corporate book-income tax is too onerous for companies and should be changed, witnesses at a public hearing said Thursday.

Proposed Treasury and IRS rules would start with the partnerships themselves to determine how much of a partnership’s income should be counted in the income of its corporate stakeholders for purposes of computing the corporate alternative minimum tax. But that “bottom-up” approach will lead to much more work for companies and may lead to distorted results, witnesses said at the hearing held by the agencies.

The ...