State and Local Tax (SALT) attorney Bruce Ely was quoted in the Daily Tax Report on a Montana bill designed to conform state law to the new IRS partnership audit regime that may soon be tabled, effectively killing it for the 2017 session. Several groups have cautioned state legislators against pursuing bills when so many questions remain about the federal partnership audit legislation approved as part of the Bipartisan Budget Act of 2015. It is expected that Congress will pass a technical corrections bill addressing the unanswered questions about new federal partnership audit procedures. Ely said that members of a task force of the American Bar Association tax section's State and Local Tax Committee continue to work on comments highlighting state and local tax issues arising out of the IRS regulations.
“Not everything has to be embedded in the statute,” Ely said, but added that “there are certain things under every state constitution that I think have to be in statutory form rather than regulation.” He said, however, that every state varies on what must be embedded in statutes versus regulations and said the checklist offered an overview of what task force attorneys thought would benefit states considering legislation.
The complete article, “Montana House Committee to Table Partnership Audits Bill,” appeared in the Daily Tax Report on February 2, 2017. (login required)