Angela Rohman Russo Quoted in Tax Notes Discussing Distributive Share

Winston & Strawn Partner Angela Rohman Russo was recently quoted in a Tax Notes article after presenting at the DC Bar’s 2023 Tax Legislative and Regulatory Update Conference where she discussed how to define distributive share for corporate alternative minimum tax. 

In a notice issued in December 2022, the IRS clarified how corporate partners should apply the distributive share rule, but did not answer questions of how the term “distributive share” of a partnership’s adjusted financial statement income should be interpreted. 

Angela shared that there are several options for defining a partner’s distributive share of the partnership’s book income, including basing it on a financial reporting percentage, a share of taxable income, or a share of section 704(b) income. Whether it adopts a top-down or bottom-up definition of distributive share, the IRS’s position will affect multiple areas of the corporate AMT, including “scope determination and liability determination,” she said.

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