§6031 — Return of partnership income
36 cases·10 followed·1 distinguished·1 criticized·1 overruled·23 cited—28% support
Statute Text — 26 U.S.C. §6031
Every partnership (as defined in section 761(a)) shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, and such other information, for the purpose of carrying out the provisions of subtitle A as the Secretary may by forms and regulations prescribe, 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.
Each partnership required to file a return under subsection (a) for any partnership taxable year shall (on or before the day on which the return for such taxable year was required to be filed) furnish to each person who is a partner or who holds an interest in such partnership as a nominee for another person at any time during such taxable year a copy of such information required to be shown on such return as may be required by regulations. Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates, except—
in the case of a partnership which has elected the application of section 6221(b) for the taxable year,
as provided in the procedures under section 6225(c),
with respect to statements under section 6226, or
as otherwise provided by the Secretary.
Any person who holds an interest in a partnership as a nominee for another person—
shall furnish to the partnership, in the manner prescribed by the Secretary, the name and address of such other person, and any other information for such taxable year as the Secretary may by form and regulation prescribe, and
shall furnish in the manner prescribed by the Secretary such other person the information provided by such partnership under subsection (b).
In the case of any partnership regularly carrying on a trade or business (within the meaning of section 512(c)(1)), the information required under subsection (b) to be furnished to its partners shall include such information as is necessary to enable each partner to compute its distributive share of partnership income or loss from such trade or business in accordance with section 512(a)(1), but without regard to the modifications described in paragraphs (8) through (15) of section 512(b).
Except as provided in paragraph (2), the preceding provisions of this section shall not apply to a foreign partnership.
Except as provided in regulations prescribed by the Secretary, this section shall apply to a foreign partnership for any taxable year if for such year, such partnership has—
gross income derived from sources within the United States, or
gross income which is effectively connected with the conduct of a trade or business within the United States.
The Secretary may provide simplified filing procedures for foreign partnerships to which this section applies.
In the case of any electing investment partnership (as defined in section 743(e)(6)),11 See References in Text note below. the information required under subsection (b) to be furnished to any partner to whom section 743(e)(2) applies shall include such information as is necessary to enable the partner to compute the amount of losses disallowed under section 743(e).
36 Citing Cases
To begin with, YA Global’s case is readily distinguishable from Zellerbach Paper Co.
Section 6031 requires every partnership as defined in section 761(a) to file a tax return for each taxable year.
Requirement That Partnership Make a Return Signed by a Partner Section 6031 requires that, for each taxable year, every partnership shall make a return of income.
Requirement That Partnership Make a Return Signed by a Partner Section 6031 requires that, for each taxable year, every partnership shall make a return of income.
Requirement That Partnership Make a Return Signed by a Partner Section 6031 requires that, for each taxable year, every partnership shall make a return of income.
Requirement That Partnership Make a Return Signed by a Partner Section 6031 requires that, for each taxable year, every partnership shall make a return of income.
under TEFRA. Generally, a partnership comes into existence for federal tax purposes and must file a return beginning when it realizes income or incurs an expense. See Williams v. Commissioner, T.C. Memo. 1987-308, 53 T.C.M. (CCH) 1203, 1210 (citing § 6031 and Treas. Reg. § 1.6031- 1(a)); see also § 761(a) (defining the term “partnership” and generally requiring the conduct of a business activity, financial operations, or venture). New Shoals began to conduct business on December 28. Its members
§ 6031; see also Weiner v. United States, 389 F.3d 152, 154 (5th Cir. 2004). And under section 702(a)(8), each partner is required to separately take into 7 account their distributive share of the partnership’s “taxable income or loss, exclusive of items requiring separate computation under other paragraphs of [section 702(a)].” Taken toget
Section 6031 and the 2006 Instructions for Form 1065, at 21-22, require a partnership to prepare Schedule K-1 for each person who was a partner at any time during the year and attach a copy of each Schedule K-1 to the partnership return. Cedarwood identified six domestic individuals as the only partners on the 2006 Schedules K-1 in the record. Ceda
The partnership also files a Schedule K-1 with the IRS to report each partner's share ofthe partnership's tax items. Id.; sec. 1.6031(a)-1(a)(1) and (2), - 39 - [*39] Income Tax Regs.; see also Cambridge Partners, L.P. v. Commissioner, T.C. Memo. 2017-194, at *11. The partnership also sends a copy ofthe partnership return and partner's
When the Commissioner disagrees with what is reported on those returns, he can issue an FPAA which makes adjustments to those items. Sec. 6223(a), (d)(2). Ifcertain partners disagree with those adjustments, they can petition the Tax Court for readjustment ofpartnership items for the taxable year identified in the FPAA. Sec. 6226(a) and (
1.6031(a)-1(e)(2), Income Tax Regs. The Commissioner then has three years to assess income tax attributable to partnership items. Sec. 6229(a). The clock starts either on the date (1) the partnership return is filed or (2) the last day for filing the return (again, usually April 15), whichever is later. Id. BCP filed its 2000 tax re
1.6031(a)-1(e)(2), Income Tax Regs. The Commissioner then has three years to assess income tax attributable to partnership items. Sec. 6229(a). The clock starts either on the date (1) the partnership return is filed or (2) the last day for filing the return (again, usually April 15), whichever is later. Id. BCP filed its 2000 tax re
* [Code]". Discussion I. Introduction Partnerships do not pay Federal income tax, see sec. 701, but they are required to file annual information returns reporting their partners' distributive shares ofincome, gain, loss, deductions, and credits, see sec. 6031. Under the unified partnership audit and litigation procedures ofthe Tax Equity and Fiscal ResponsibilityAct of 1982 (TEFRA), Pub. L. No. 97-248, sec. 402(a), 96 Stat. at 648, the tax treatment ofany partnership item generally must be deter
The individual partners report their distributive shares ofthe partnership items on their Federal income tax returns. Secs.701-704. The substantive law governing the income taxation ofpartners is in subchapter K ofchapter 1 ofthe Code (subchapter K). Subchapter K creates a detailed and complex system ofrules for characterizing transactio
The individual partners report their distributive shares of the partnership items on their Federal income tax returns. Secs. 701-704. The substantive law governing the income taxation of partners is in subchapter K of chapter 1 of the Code (subchapter K). Subchapter K creates a detailed and complex system of rules for characterizing tran
Income Tax Return for Estates and Trusts , or other informational returns under "section 6031 of the * * * [I .R .C.] of 1954," the trustee will not be obligated to prepare them, but the trustee will sign informational returns if necessary at the beneficiaries ' request .
ulations both created by Holland & Knight in the regular course of its business . On the one hand, the Schedules K- 1 relied upon by respondent were reported by the law firm t o ,,respondent in compliance with the tax reporting requirements of 23 - section 6031 . On the,other`..hand, the ..sche:dules relied upon by petitioner(cid:127)were created by Holland ;&. Knight to track petitioner' s capital account-and, L, ultimately.-to determine the law firm's payments to.=petitioner in,liquidationof h
6031; see also Randell v. United States, 64 F.3d 101, 103 (2d Cir. 1995); Crowell v. Commissioner, 102 T.C. 683, 688-689 (1994). Partners are required to report their distributive shares of those items on their personal Federal income tax returns. See secs. 701, 702, 703, and 704. Before 1982 the Commissioner and the courts had to adjust partn
6031; see also Randell v. United States, 64 F.3d 101, 103 (2d Cir. 1995). Partners are required to report their distributive shares of those items on their individual Federal income tax returns. See secs. 701, 702, 703, and 704. The Commissioner and the courts had to adjust partnership items at the partner level before 1982. See Adams v. Johns
6031; see also Randell v. United States, 64 F.3d 101, 103 (2d Cir. 1995). The partners are required to report their distributive shares of those items on their personal Federal income tax returns. See secs. 701, 702, 703, and 704. Before 1982, the Commissioner and the courts were required to adjust partnership items at the partner level. See R
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.