NYC Backs Off Plan for Taxing Corporate Partners After Backlash

The New York City Department of Finance won’t go ahead with a controversial plan for taxing corporate partners as part of its overhaul of the corporate tax structure, after objections from many tax practitioners earlier this year.

In an alert released Friday, the city said it has decided not to move forward with its “initially considered methodology” to use rules under its unincorporated business tax to allocate partnership income earned by corporations. That proposal had been shaping up as the biggest point of contention for tax firms as ...