Advocacy News – December 3, 2020
Taking another step forward this week was legislation that creates a mechanism for a partnership to make state tax adjustments that arise due to a change in a partnership’s federal tax liability. SB 1035, introduced by Senator Runestad, is based on model legislation adopted by the Multistate Tax Commission to address how states should handle changes in the way the Federal government audits partnerships.
While a few key provisions of the model act are not included in SB 1035, the Michigan Chamber will work to incorporate these into future legislation. The Department of Treasury is not comfortable with some of the model act at this time, but we can work with them more once the bulk of the model act is incorporated into Michigan law.
SB 1035 will help promote tax compliance and ensure a smooth process for rectifying state tax liabilities that result from federal tax adjustments. The Michigan Chamber has worked closely with the Council on State Taxation (COST) to get the model act adopted.
For more information on this subject, please contact Dan Papineau at dpapineau@michamber.com