State and Local Tax (SALT) attorney Bruce Ely was quoted in State Tax Notes on the Multistate Tax Commission’s efforts to prepare a roadmap that would integrate the new IRS centralized partnership audit process with the latest draft model revenue agent report (RAR) statute proposed by a task force comprising five state tax practitioner and multistate business organizations.
Ely, co-chair of the ABA task force, said that between the recently released GOP federal tax reform plan and the IRS’s September hearing on the proposed partnership audit regs, it doesn’t look like the federal rules affecting the states are going to be delayed.
“They are promising to finalize the proposed regs before the end of the year,” Ely, adding that it’s unclear how much more federal guidance the states would receive.
“The issue is becoming more pressing,” Ely said, adding that task force members have met in person with MTC staff, and their goals are mutual. “The hope is [that] we can go arm-in-arm to legislatures” with a model that is good for both taxpayers and the states, he said.