Under which of the following circumstances would a partnership terminate and close its tax year?

Question

Quizplus · Accepted Answer

A partnership will terminate and close its tax year when it ceases all business activities. This is because the partnership will no longer have any income or expenses to report to the IRS. While the other options may have an impact on the partnership, they do not necessarily result in the termination and closing of the tax year.

Under Which of the Following Circumstances Would a Partnership Terminate