Paul L. Caron
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Tuesday, February 1, 2022

Luke Reviews Monroe's Forgotten Taxpayers In Partnership Tax

Charlene D. Luke (Florida; Google Scholar), Law Over Improvision: A Call to Reform the Culture of Partnership Tax (reviewing Andrea Monroe (Temple), Making Tax Law Work: Improvisation and Forgotten Taxpayers in Partnership Tax, 55 U. Mich. J. L. Reform ___ (2022)):

JOTWELL Tax (2021)Andrea Monroe’s article, Making Tax Law Work: Improvisation and Forgotten Taxpayers in Partnership Tax, boldly calls on partnership tax experts to understand their role in normalizing dysfunction within partnership tax law and to support reform that is mindful of all partnerships.

Although millions of business entities are taxed as partnerships, assets and income are concentrated in a small number of them. As Monroe notes, drawing on IRS data from 2018, “less than 1 percent of partnerships held greater than 76 percent of partnership assets, and approximately 73 percent of partnerships held roughly 1 percent of partnership assets.” This suggests great differences among tax partnerships, yet, as partnership income and deductions are taxed to the partners and not the partnership, all tax partnerships must allocate their income and deductions to their owners. ...

Andrea Monroe’s article is a critical and timely reminder that the tax system, including the highly difficult portion applicable to tax partnerships, “only works if the vast majority of [taxpayers]—whether rich or poor, forgotten or elite—can participate.”

https://taxprof.typepad.com/taxprof_blog/2022/02/luke-reviews-monroes-forgotten-taxpayers-in-partnership-tax.html

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