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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Tuesday, February 13, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will give partnership tax advisers a comprehensive exploration into advanced multistate tax issues facing partnerships with income or operations in multiple states. The program will provide tax advisers and professionals with a detailed and practical guide to critical state tax issues and trends impacting individual partners owning shares of multistate partnerships. The panel will discuss critical questions such as the evolving state pass-through entity (PTE) elections and considerations for the owners.

Faculty

Denisse Moderski
Director
Eisner Advisory Group, LLC

Ms. Moderski is a Director in the firm’s State and Local Tax Group. With over 10 years of experience, she primarily focuses on state and local income taxation and serves clients in a variety of industries, including Financial Services, FinTech, Professional Services, Real Estate, amongst others. Ms. Moderski's specific areas of service include ASC 740, state and local income/franchise tax compliance and consulting matters, including nexus studies, tax due diligence, business entities restructuring, sale of partnership interest analysis, pass-through entity tax elections, state sourcing, state notices resolutions and audit defense.

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Nicholas Montorio
Director
Eisner Advisory Group, LLC

Mr. Montorio is a State Tax Director within the firm's Tax Services Group. With over 15 years of experience, he has deep experience in a variety of state tax matters, including the state tax implications associated with mergers and acquisitions, identifying and securing state income tax refunds, and representing clients through state tax controversies. Mr. Montorio is specifically proficient in providing consulting services with respect to New York and New Jersey corporate income taxation. He primarily serves partnerships and corporations in the manufacturing & distribution, financial services, and technology industries. Mr. Montorio leads the firm's New York State & Local Tax team and helps identify tax savings opportunities for the firm's New York client base.

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Description

One of the more challenging areas of multistate tax practice is the taxation of partners in partnerships conducting activities in more than one state. Navigating various states' treatment of partnerships, particularly their nonresident partners, can result in unforeseen tax consequences and compliance burdens. Tax advisers must resolve several critical issues to report partnership income accurately.

Determining whether the partnership's activities create nexus within the state, attributing the character of partnership income as active business income or passive investment income, and deciding whether the partnership elects to file a composite return or withhold tax are just some of the challenges faced by tax advisers. Reconciling various states' approaches to taxation of multistate partnerships and partners creates additional complexity in tax reporting and planning.

Determining whether the character of partnership income is at the partnership level or the partner level is crucial. Very few states have issued any guidance regarding where to make that income determination. Some states that have addressed the question have split results. Because taxpayers must apportion business income and allocate nonbusiness income to the source state, the tax results vary from state to state regarding the proper taxation of partnership income.

Since the IRS issued Notice 2020-75, several states have enacted PTE elections. These elections are meant to benefit the individual owners of the partnership, but there are several considerations before making the elections.

Listen as our experienced panel offers a comprehensive view of states' approaches to taxing partnership income.

Outline

  1. Nexus overview
  2. Allocation vs. apportionment of partnership income
  3. State tax updates
  4. States requiring withholding on nonresident partners
  5. State PTE elections

Benefits

The panel will discuss the following critical issues:

  • State sourcing and taxation of income
  • State PTE elections and related considerations
  • States that require business/nonbusiness income determination at partner vs. partnership level
  • State withholding considerations

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Distinguish between PTE filing requirements from a partner/owner's filing requirements
  • Recognize the different state tax treatments governing nonresident withholding
  • Ascertain when a PTE has nexus with a foreign state
  • Understand when state PTE elections may be beneficial
  • Determine key considerations of PTE elections
  • Identify how specific states handle state tax credits for PTE taxes

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years plus business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of advanced multistate tax issues that partnerships encounter with income or operations in multiple states; familiarity with the character of pass-through income at the partner or partnership level, and whether the pass-through income must be considered on an aggregate basis or at the entity basis.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).