Partner

ID:
UILC:
CCA_2013032508574101
6231.02-00
Third Party Communication: None
Date of Communication: Not Applicable
Number: 201326016
Release Date: 6/28/2013
From:
Sent: Monday, March 25, 2013 8:57:41 AM
To:
Cc:
Bcc:
Subject: RE: Issue whether a partner is really a partner
This is a substantive question under --- jurisdiction. --- or --- in that division may be able to help you. Generally we look to the Supreme Court tests in the Culbertson and Tower cases to determine whether a person is a partner for federal tax purposes; a person is a partner if he joins together with others capital or services in a trade or business for profit.
Jurisdictionally, the status of a listed partner as a partner is a partnership item under
Blonien v. Commissioner, 118 T.C. 541 (2002). Thus, this determination would be subject to your FPAA.
We also determine self-employment income for certain pass-thru partners if the ultimate tax paying indirect partner would be subject to self-employment tax from the partnership. See Olsen v. Commissioner, T.C. Memo 2005-174. The status of your pass-thru partner for this purpose is under --- jurisdiction- but I suspect that if your pass-thru partner is a disregarded entity, its owner would be subject to self-employment tax and we would, consequently, have to determine the pass-thru partner’s share of selfemployment income in this proceeding.