Multistate Tax Treatment of Multi-Tier Partnerships: Navigating State Rules For Nonresident Tiered Pass-Through Entities

Determining Treatment of Lower-Tier Apportionment Factors, Meeting Withholding and Composite Return Requirements

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, August 31, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers and compliance professionals with a practical guide to navigating the multistate reporting complexities involved in multi-tiered partnerships. The panel will outline various state rules governing apportionment of income from lower-tier pass-through entities, withholding requirements and composite return provisions. The panel will also discuss state approaches to honoring IRC 743(b) adjustments from the upper-tier to the lower-tier partnerships.

Description

A significant challenge for tax advisers to tiered partnerships is determining various states’ tax treatment of the tiered entities, particularly when a lower-tier partnership is located in a different state than the upper-tier owner. Because of the inconsistency in various state treatments, tax advisers often face complex, sometimes conflicting, rules in determining how the upper-tier entity resident state will treat pass-through items of income and loss from lower-tier entities.

Advisers to upper-tier partnerships must determine how the entity’s lower-tier pass-through items are treated in the resident state. Ascertaining whether the lower-tier partnership’s apportionment factors flow through to the upper-tier entity materially affects the income/loss calculations of the partnership.

Likewise, navigating various states’ withholding requirements and determining when a lower-tier’s resident state allows, or mandates, composite filings is also a crucial and difficult task.

Tax advisers need to fully grasp the significant factors in determining various states’ tax treatment of multi-tier partnerships when the lower-tier partnership is non-resident.

Listen as our experienced panel offers a practical guide to navigating multistate complexities and approaches to taxing tiered partnerships with nonresident lower-tiers.

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Outline

  1. Identifying multi-tier partnerships with multistate filing requirements
  2. How to determine whether lower-tier apportionment factors flow through to upper-tier partner
  3. Withholding requirements
  4. Composite return rules and exceptions for multi-tier partnerships

Benefits

The panel will discuss these and other important questions:

  • Which states allow lower-tier partnership’s apportionment factors to flow through to the upper-tier partner?
  • How does the presence of a tiered partnership impact withholding requirements for nonresident partners?
  • Impact of a partnership’s status as a tiered entity on composite return requirements
  • What states allow tax attributes to flow through to the upper-tier partnership?

Faculty

Lake, Karen
Karen A. Lake, CPA

Associate Director of Tax Services
Berkowitz Pollack Brant Advisors and Accountants

Ms. Lake has nearly 20 years of experience focusing on helping businesses and individuals develop their tax...  |  Read More

Hirsch, Michael
Michael Hirsch, JD, LLM

Senior Manager of Tax Services
Berkowitz Pollack Brant Advisors and Accountants

Mr. Hirsch specializes in state, local, and corporate taxation. He helps clients with structuring, compliance,...  |  Read More

Cabrera, Richard
Richard Cabrera
Corporate Tax Senior Manager
Berkowitz Pollack Brant Advisors and Accountants

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