State and Local Tax (SALT) attorney Bruce Ely was quoted in State Tax Notes regarding partnership returns and choice of business entity in recent years. Data from the latest IRS Statistics of Income Bulletin on partnership returns for tax year 2013 indicates that Subchapter K entities have surpassed all C corporations, S corporations and individuals as the top income recipients for two consecutive years. Ely said he foresaw Subchapter K entities eventually overtaking C corporations, but he didn’t realize it would happen so quickly.
“You will see some historic S corporations out there, and there will continue to be many,” said Ely. “But if you look at the statistics, Subchapter K entities far outstrip C and S corporations right now.”
The complete article, “2016: The Year Partnership Issues Take Center Stage ?” first appeared in State Tax Notes on April 11, 2016. (login required)