States Consider Diverse Models for Taxing Complex Partnerships

Members of the Multistate Tax Commission are taking the first steps toward more consistent rules that could help states trace and equitably tax income moving through complex tiered partnerships.

As a guide, a commission work group on state taxation of partnerships Wednesday dissected a 115-page report analyzing the diverse body of state statutes, regulations, case law, forms, instructions, and informal guidance relevant to such partnerships.

Jenn Stosberg, the commission staff attorney who developed the report, was reluctant to identify any patterns or best practices, saying during a work group meeting that the commission is still evaluating both the similarities ...