What is the rationale for the specific rules partnerships must follow in determining a partnership's taxable year-end?
A) To increase the amount of aggregate tax deferral partners receive
B) To minimize the amount of aggregate tax deferral partners receive
C) To align the year-end of the partnership with the year-end of a majority of the partners
D) To spread the workload of CPAs more evenly over the year
E) To minimize the amount of aggregate tax deferral partners receive and to align the year-end of the partnership with the year-end of a majority of the partners

Question

Quizplus · Accepted Answer

The specific rules for determining a partnership's taxable year-end are designed to achieve two goals: minimize the amount of aggregate tax deferral partners receive and align the year-end of the partnership with the year-end of a majority of the partners. By doing so, the partners can receive tax deferral benefits while also simplifying the tax reporting process. Therefore, the best choice is E, which includes both of these rationales.

What Is the Rationale for the Specific Rules Partnerships Must