Discussion 1

“Partnership Tax Year” Please respond to the following:

The IRC restricts the choices for a partnership‘s tax year to prevent the deferral of tax. This causes most partnerships to adopt a calendar year for tax reporting. From the e- Activity, create a scenario using a fiscal tax year which allows a partnership to defer taxes that meet the requirements of Sections 706 and 444 of the IRC.

• Suggest at least one (1) major reason why Congress allowed the exception to the calendar year for partnership tax year elections.
• Suggest at least one (1) major reason why Congress allowed the exception to the calendar year for partnership tax year elections.

ACC565 Week 6 Discussion 2