Form 541 - Partnerships - Department Of Treasury Internal Revenue Service

Publication 541

Contents

(Rev. April 2008)

Cat. No. 15071D

Reminder . . . . . . . . . . . . . . . . . . . . . . 1

Department

of the

Introduction . . . . . . . . . . . . . . . . . . . . . 1

Partnerships

Treasury

Forming a Partnership . . . . . . . . . . . . . 2

Internal

Terminating a Partnership . . . . . . . . . . . 3

Revenue

Service

Exclusion From Partnership

Rules . . . . . . . . . . . . . . . . . . . . . . 3

Attention: This publication will no longer be revised on an annual

Partnership Return (Form 1065) . . . . . . . 4

basis. The information contained in this publication no longer requires

annual updates. To find changes that may affect current year returns,

Partnership Distributions . . . . . . . . . . . 4

see What’s New in your income tax return instructions; Publication

Transactions Between

553; What’s Hot in Tax Forms, Pubs, and Other Tax Products at

Partnership and Partners . . . . . . . . 6

The information removed from this publication

is available in the Instructions for Form 1065 and Partner’s Instructions

Basis of Partner’s Interest . . . . . . . . . . . 9

for Schedule K-1 (Form 1065). To comment on this revision process,

see Comments and Suggestions on page 2.

Disposition of Partner’s Interest . . . . . . 10

How To Get Tax Help . . . . . . . . . . . . . . 13

Index . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Reminder

Photographs of missing children. The Inter-

nal Revenue Service is a proud partner with the

National Center for Missing and Exploited Chil-

dren. Photographs of missing children selected

by the Center may appear in this publication on

pages that would otherwise be blank. You can

help bring these children home by looking at the

photographs and calling 1-800-THE-LOST

(1-800-843-5678) if you recognize a child.

Introduction

This publication provides supplemental federal

income tax information for partnerships and

partners. It supplements the information pro-

vided in the instructions for Form 1065, U. S.

Return of Partnership Income, and the Partner’s

Instructions for Schedule K-1 (Form 1065). Gen-

erally, a partnership does not pay tax on its

income but “passes through” any profits or

losses to its partners. Partners must include

partnership items on their tax returns.

For a discussion of business expenses a

partnership can deduct, see Publication 535,

Business Expenses. Members of oil and gas

partnerships should read about the deduction

for depletion in chapter 9 of that publication.

Certain partnerships must have a tax matters

partner (TMP) who is also a general partner. For

information on the rules for designating a TMP,

Get forms and other information

see Designation of Tax Matters Partner (TMP) in

faster and easier by:

the Form 1065 instructions and section

301.6231(a)(7)-1 of the regulations.

Internet •

Many rules in this publication do not

apply to partnerships that file Form

1065-B, U.S. Return of Income for

CAUTION

Electing Large Partnerships. For the rules that

apply to these partnerships, see the instructions

for Form 1065-B. However, the partners of elect-

/efile

ing large partnerships can use the rules in this

publication except as otherwise noted.

Form 541 - Partnerships - Department Of Treasury Internal Revenue Service - 2008

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