Bradley Arant partner Bruce Ely was quoted in Law360 regarding a recently enacted law that revamps how partnerships are audited at the federal level. States will likely be required to reconcile their own partnership tax rules as new federal rules phase out a flow-through treatment of partnerships. That change alone raises several state tax questions, such as what happens if a partner’s state of residence changes from the reviewed year to the adjustment year, according to Ely.
“There may be due process issues such as how do you track these people down and collect the delinquent income tax when they’ve left the state in the meantime,” Ely said.
Read the complete article, “Partnership Audit Overhaul Warrants State Tax Revisions,” which first appeared in Law360 on January 22, 2016. (login required)