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