September 3, 2020
Chamber lobbyist Dan Papineau testified in support of SB 1035 (Runestad) this week, legislation that will make it easier for partnerships to adjust their state tax burden in scenarios where a federal audit changed their federal tax burden.
Triggered by a federal change that allows the Internal Revenue Service (IRS) to audit partnerships at the entity level instead of the partner level, SB 1035 will create a simple mechanism for taxpayers to use if they need to adjust their state tax liability as a result of an IRS audit that changes their federal tax liability.
SB 1035 mirrors model legislation prepared by the Multistate Tax Commission and is being pursued in states all across the country. Once again, the Michigan Chamber has teamed up with the Council on State Taxation on the effort to seek enactment of this proposal.
For questions on this legislation please contact Dan Papineau at dpapineau@michamber.com.