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(10th Cir. 1989)) or other excise taxes (Young v. Riddell, 283
F.2d 909 (9th Cir. 1960)).
Equally important, the terms such as "taxpayer" and
"partnership" have certain elastic applications within the
Internal Revenue Code. While a partnership generally is not
subject to income taxes, concepts such as taxable income are
fully applicable. Section 703(a) provides that with exceptions
"The taxable income of a partnership shall be computed in the
same manner as in the case of an individual". In United States
v. Basye, 410 U.S. 441, 448 (1973), the Supreme Court noted for
the purpose of computing taxable income that "the partnership is
regarded as an independently recognizable entity apart from the
aggregate of its partners."
There are many examples of the term "partnership" being used
in place of the word "taxpayer" or other similar designations.
Section 446(a) provides: "Taxable income shall be computed under
the method of accounting on the basis of which the taxpayer
regularly computes his income in keeping his books." (Emphasis
added.) For purposes of section 446, however, the "taxpayer" is
the partnership. See Resnik v. Commissioner, 66 T.C. 74, 80
(1976), affd. per curiam 555 F.2d 634 (7th Cir. 1977). Section
1033(a)(2)(A) provides that "at the election of the taxpayer" a
gain may not be recognized. (Emphasis added.) For section 1033
purposes, when a partnership is involved, the taxpayer is the
partnership. See Demirjian v. Commissioner, 457 F.2d 1, 5 (3d
Cir. 1972), affg. 54 T.C. 1691 (1970). Section 183(a) (regarding
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