State and Local Tax (SALT) attorney Bruce Ely was quoted in State Tax Notes on requests from the Multistate Tax Commission to simplify the draft model statute for reporting federal partnership audit adjustments. The draft model includes substantive tax and procedural rules that already exist in state law; duplicates provisions; attempts to do by statute what might only be possible by regulation; and contains complex timelines, especially for tiered partners.
Practitioners have expressed surprise at the length and breadth of the MTC staff’s initial comments and recommendations. The task force is composed of members of the American Bar Association Section of Taxation’s State and Local Taxes Committee, the American Institute of CPAs’ state tax working group, the Council On State Taxation, the Tax Executives Institute, and the Institute for Professionals in Taxation. Because the task force received the report the same day, practitioners mostly declined to respond.
“Please don’t take our silence as being acquiescence,” said Ely, co-chair of the ABA task force.
The complete article, “MTC Staff Requests Changes to Model for Reporting Partnership Adjustments,” appeared in State Tax Notes on October 27, 2017. (login required)