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6. Whether the Parties Filed Federal Partnership Returns or
Otherwise Represented to Respondent or to Persons With Whom They
Dealt That They Were Joint Venturers
Under section 6031 and section 1.6031-1(c) and (d), Income
Tax Regs., every partnership engaged in trade or business, or
having income from sources within the United States was required
to file a partnership return. Petitioner and Crocus did not file
partnership returns for the taxable periods at issue. It is not
clear from the record whether petitioner and Crocus conducted
foreign trade shows as a joint venture engaged in trade or
business, or having income from sources, within the United
States. The purpose of this Luna factor is to determine whether
petitioner and Crocus represented to respondent that they
conducted foreign trade shows as a joint venture. In deciding
this issue, it is not necessary to determine whether petitioner
and Crocus were required to file a partnership return under
section 6031 and section 1.6031-1(c) and (d), Income Tax Regs.
Regardless of whether petitioner and Crocus were required to
file a partnership return, neither petitioner nor Crocus
represented to respondent that they conducted foreign trade shows
during the taxable periods at issue as a joint venture. On its
returns for the taxable periods at issue, petitioner did not
explain or state that it was engaged in a partnership with any
entity; petitioner merely reported its share of gross income from
foreign trade shows in accordance with the royalty agreement.
There is no other evidence or document in the record that
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