Which one of the following statements regarding partnership taxation is incorrect?
A)A partnership is a taxable entity for Federal income tax purposes.
B)Partnership income is comprised of ordinary partnership income or loss and separately stated items.
C)A partnership is required to file a return with the IRS.
D)A partner's profit-sharing percent may differ from the partner's loss-sharing percent.
E)All of these statements are correct.

Question

Quizplus · Accepted Answer

Partnership is not a taxable entity for Federal income tax purposes. Instead, the partnership's income is allocated to the partners, who report it on their individual tax returns.

Which One of the Following Statements Regarding Partnership Taxation Is