club_cafe: Re: consolidated audit

iras1 on

>>Does anyone know how "Small Partnership" is defined in
section 6231(a)(1)(B)(i)? Is the text of that section
available on the internet? In particuar, is it possible to
be a "Small Partnership" if you have more than 10 members?

Section 6231. Definitions and special rules
   (a) Definitions
        For purposes of this subchapter -
      (1) Partnership
         (A) In general
              Except as provided in subparagraph (B), the term "partnership" means
              any partnership required to file a return under section 6031(a).
         (B) Exception for small partnerships
            (i) In general
                 The term "partnership" shall not include any partnership having 10 or
                 fewer partners each of whom is an individual (other than a nonresident
                 alien), a C corporation, or an estate of a deceased partner. For
                 purposes of the preceding sentence, a husband and wife (and their
                 estates) shall be treated as 1 partner.
            (ii) Election to have subchapter apply
                 A partnership (within the meaning of subparagraph (A)) may for any
                 taxable year elect to have clause (i) not apply. Such election shall
                 apply for such taxable year and all subsequent taxable years unless
                 revoked with the consent of the Secretary.

The Internal Revenue Code can be found at a number of places online. I tend to use the searchable database at Cornell

www.law.cornell.edu/uscode/26/

Ira Smilovitz

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