Partnership and Partner Elections

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Compliance. 16 min read, ~2,392 words.

Partnerships must use a required tax year (majority interest, then principal partners, then least aggregate deferral) unless they elect §444 and make required payments. The §444 election permits a fiscal year up to three months different from the required year but requires annual payments approximating the deferral benefit. The §754...