When a partner receives an allocation for service as part of their share of the income the partner has status both as a partner and as an employee.

Name: When a partner receives an allocation for service as part of their share of the income the partner has status both as a partner and as an employee.
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When a partner receives an allocation for services as part of their share of the income, they are considered a partner for tax purposes, not an employee, for those services related to the partnership.

When a Partner Receives an Allocation for Service as Part