Tax Analysts provides news, analysis, and commentary on tax-related topics, including the latest developments affecting treatment of partnerships.
The tax rules governing partnerships are generally found in Subchapter K of the Internal Revenue Code. A partnership is defined in section 761, and is one of the options to elect, or elect out of, in the “check the box” entity classification rules of section 7701. A general partnership is one in which every partner is responsible for partnership liabilities. A limited partnership has one or more general partners and one or more limited partners, who are responsible only to the extent of their investments in the partnership. A limited liability partnership is a general partnership in which all partners are professionals. Publicly traded partnerships, defined in section 7704 are generally taxed as corporations. Electing large partnerships are those with 100 or more members and that elect treatment as such. (Section 771, et seq.)
Recurring issues in the area of taxation of partnerships include whether an issue affecting a partnership and its partners is to be determined at the partnership level or at the partner level, whether a partnership is a tax shelter, and the treatment of carried interest income.
Tax Analysts consistently and promptly publishes all relevant developments regarding taxation of partnerships, including court cases, IRS guidance, regulations, news stories, legislation, commentary, and other materials.
