MultiTax Commission

An intergovernmental state tax agency whose mission is to promote uniform and consistent tax policy and administration among the states, assist taxpayers in achieving compliance with existing tax laws, and advocate for state and local sovereignty in the development of tax policy.

State Taxation of Partnerships 

Project Description

At its meeting in April 2021, the Uniformity Committee took up a project on state taxation of partnerships based on the
recommendations of the Standing Subcommittee that a work group be established to consider issues affecting:

    • Sourcing of partnership operating income and partnership items for state tax purposes;
    • Sourcing and taxation of gains and losses from the sale of partnership interests;
    • Entity level taxation issues including transfer pricing or combined filing issues; and
    • Other administrative and enforcement issues including information reporting and withholding.

On this project page, you will find:

    • information about upcoming and past meetings
    • whitepaper outline drafts
    • written comments and feedback

Upcoming Meeting Notice


Next Meeting – Wednesday, September 20, 2023 – 3:00 p.m. Eastern

I.     Initial Public Comment

II.    Status Report – Overview of Project Status
– Slides for the call – PDF Version & PowerPoint Version

III.   Review of Guaranteed Payment Issue –
– Current Version of White Paper – PDF Version & Word Version 
– (See additional information below.)

IV.    Discussion and Decision on Guaranteed Payment Model (Possible Vote)

V.     Review of Investment Partnership Draft Model (Time Permitting)
Current Version of Draft Model (See additional information below.)

VI.    Wrap Up and Discussion of October Meeting

VII.   Adjourn

Dial-in/Log-in Information 

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United States: +1 (872) 240-3412
Access Code: 208-267-469

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If you experience any kind of difficulty participating in the meeting, please contact

Project Materials

Latest Documents – By Subject

Partnership Issue Outline

The work group began this project by drafting a Partnership Issue Outline that identifies and generally describes a comprehensive list of potential issues and notes the relationships between those issues.

Current Version

Past Versions

Subchapter K Training

The work group directed MTC staff to provide an online basic training on Subchapter K.  The free training is available to state tax administrators who request access by emailing Chris Barber.

Investment Partnerships

At the December 10, 2021 Partnership Work Group meeting, the Work Group decided to begin developing generally recommended practices or positions for the state tax treatment of investment partnerships. The Work Group first drafted a White Paper on Investment Partnerships and then drafted a Model Statute. Upon further discussion and comment, the work group determined that a Model Regulation would better address this issue because the treatment of investment partnership income is already supported by state law, and a regulation would provide greater certainty in fact-specific situations. Current and prior versions of the white paper and model are below, along with written public comment.

Model Rule (with Comments)

Current Version

Previous Versions

White Paper

Current Version

Previous Versions

Guaranteed Payments

At its February 15, 2023 meeting, the Work Group began addressing sourcing guaranteed payments from services. The Work Group has prepared a draft White Paper that provides background on the federal treatment of guaranteed payments, summarizes guaranteed payments issues addressed by the states, categorizes the different ways states source guaranteed payments, and provides related findings and recommendations.  A draft of the White Paper, Proposed Findings and Recommendations on Sourcing of Guaranteed Payments, and a spreadsheet demonstrating different sourcing methods currently used by the states are avaialble below.

At the September 20, 2023 meeting, the Work Group directed staff to draft a model that sources guaranteed payments for services similarly to other items of distributive share.

Current Documents

Additional Background Information

Older Meeting Archives