Congress to protect ex-partners of former partnerships

Gone Fishing

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in Small Business Tax,Small Business Tax Deduction Strategies

More former business owners can rest easy in retirement. Here’s why: Congress is expected to protect ex-partners of former partnerships from having states pursue them for back taxes. The whole story: Some states have aggressively pursued taxes on the non-qualified deferred compensation of employees who’ve moved out of state. Their reasoning: The employees earned the income while they were state residents. A 1995 federal tax law
exempted employees who move in retirement to no-tax or low-state states. Now, Congress is expected to amend the law to provide the same protection to ex-partners of former partnerships.

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