Bruce Ely Quoted in Bloomberg Law on Rule Revisions in Model Tax Law from the MTC
Bradley partner Bruce Ely was quoted in Bloomberg Law News on recent modifications to the issue outline and model tax law draft from the Multistate Tax Commission (MTC). The modifications pulled back on two anti-abuse provisions that Ely called “over-broad and ambiguous”. Ely authored a comment letter that was submitted to MTC’s work group.
“The August 18 changes to the draft Model Act from the previous draft are largely beneficial to the investment partnership community, and I think, to state administration as well,” explained Ely, who authored a Bloomberg Tax special commentary on the model law.
The work group dropped a section that sought to override the general rule that a nonresident qualified investment partnership partner could exclude from that state’s income tax the partner’s distributive share of partnership income. The work group also removed a provision permitting state revenue agencies to revoke a qualified investment partnership’s certification if it determines the statute had been improperly used to avoid income tax liability.
Ely noted that these provisions would have been confusing to taxpayers and unwieldy for state tax agencies to administer.
The complete article, “Anti-Abuse Rule Revised in Model Tax Law on Partnerships,” was published by Bloomberg Law on August 23, 2022. (log-in required)