Sullivan
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Richard Jones, the leader of Sullivan's Tax Group, was quoted in the article "Tax Pros See Constitutional Flaws With Investee Apportionment," published by Tax Notes [sub. req'd] on March 11, 2025. The article focuses on how Massachusetts lawmakers are considering a budget proposal to tax nonresidents' gains from passthrough sales using the investee apportionment method, which tax experts argue may violate constitutional principles.

"[You can] put it in statute, but you can’t override the constitutional unitary principles,” Rich said, noting that while the proposal aims to address a 2022 court ruling, it remains constitutionally suspect, as the unitary business principle is essential for lawful taxation, and many experts believe the investee apportionment method is fundamentally flawed.

Rich also noted the case of VAS Holdings & Investments LLC v. Commissioner, in which the Supreme Judicial Court ruled that Massachusetts could not tax a nonresident S corporation's capital gains from selling its interest in a local LLC using the investee apportionment method, while also suggesting that this method might still be valid under certain conditions, especially as proposed in the new Massachusetts budget that treats passthrough entities as extensions of their nonresident owners.