Assessment as a firm requires an executed partnership instrument and certified deed; non-compliance disallows partner payment deductions. Assessment as a firm requires a partnership instrument specifying individual partner shares and a certified copy of that instrument must accompany the return when assessment as a firm is first sought, certified by all non-minor partners or, after dissolution, by former partners and legal representatives of deceased partners. A firm once assessed remains so unless the constitution or shares change, in which case a certified revised instrument must be furnished. Certain failures by the firm cause a rule disallowing any deduction for payments to partners and make those payments not chargeable to tax under the relevant income provision.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assessment as a firm requires an executed partnership instrument and certified deed; non-compliance disallows partner payment deductions.
Assessment as a firm requires a partnership instrument specifying individual partner shares and a certified copy of that instrument must accompany the return when assessment as a firm is first sought, certified by all non-minor partners or, after dissolution, by former partners and legal representatives of deceased partners. A firm once assessed remains so unless the constitution or shares change, in which case a certified revised instrument must be furnished. Certain failures by the firm cause a rule disallowing any deduction for payments to partners and make those payments not chargeable to tax under the relevant income provision.
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