Husband and Wife

ID:
UILC:
CCA_2013032908541001
6231.12-00
Number: 201319024
Release Date: 5/10/2013
From:
Sent: Friday, March 29, 2013 8:54:10 AM
To:
Cc:
Bcc:
Subject: RE: Consistent Settlement- Joint Return
If the partnership interest is community property, the regulations treat the husband and wife as separate partners so that the settlement/conversion of one spouse does not automatically convert the partnership items of the other spouse- except when the nonsettling spouse is not listed on the partnership return K-1. In this later case, the conversion of the only listed spouse serves to also convert the partnership items on the non-listed spouse. See Treas. Reg. 301.6231(a)(12)-1(c) and -1(a)(2).
In non-community property states the conversion of the spouse owner of the partnership interest serves to convert the partnership items of the jointly filing non-partner spouse.