6
(iv) Income of the partnership exempt from tax * * *
Sec. 301.6231(a)(3)-1(a)(1)(i) through (iv), Proced. & Admin.
Regs.
Section 6031(a) provides that every partnership is required
to "make a return for each taxable year, stating specifically the
items of its gross income and the deductions allowable by
subtitle A * * * and shall include in the return the names and
addresses of the individuals who would be entitled to share in
the taxable income if distributed and the amount of the
distributive share of each individual." The regulations further
clarify that the return shall include the "amount of the
distributive share of income, gain, loss, deduction, or credit
(including any items which enter into the determination of the
tax imposed by section 56) allocated to each partner." Sec.
1.6031-1(a)(1), Income Tax Regs. Therefore, the partnership
returns and Schedules K-1 are required to reflect what each
partner's distributive share of each partnership item was for the
partnership year. Harrell v. Commissioner, supra.
In Harrell v. Commissioner, supra, we first addressed the
issue of the application of the same share requirement. The
taxpayers argued that we lacked jurisdiction over the deficiency
determination because the Commissioner, in seeking to make
adjustments with respect to a partnership, failed to issue an
FPAA. In particular, the taxpayers argued that the same share
test should be applied to the terms of the partnership agreement,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011