The MTC Undertakes an Ambitious Study of Partnership TaxationJune 30, 2021 – Articles
Dinsmore partner Kelvin Lawrence was published in Bloomberg Tax with co-author Bruce P. Ely from Bradley Arant Boult Cummings LLP. Their article, "The MTC Undertakes an Ambitious Study of Partnership Taxation," discusses the Multistate Tax Commission (MTC) Uniformity Committee's work group they created to study issues related to multistate taxation of pass-through entities. Kelvin and Bruce review what could come from the project and if it will be beneficial to states and taxpayers. An excerpt is below.
On April 27, 2021, the Multistate Tax Commission (MTC) Uniformity Committee voted to accept its Standing Subcommittee’s recommendation to create a work group to study several key issues relating to multistate taxation of Internal Revenue Code Subchapter K entities classified for income tax purposes as partnerships and their partners (including multimember LLCs and their members).
The work group held its organizational meeting via conference call on June 15, with the indefatigable Helen Hecht, MTC Uniformity Counsel, chairing the meeting. A new website has been established for this project.
Tax practitioners, taxpayers, and state tax administrators will be watching its work with great interest, as many regard partnership taxation as the most complex area of both federal and state taxation. It is widely believed that eventual MTC action on this topic may have a major impact on taxpayers and states alike.
Click the link below to read the full article.