Reportable Entity Partner Attribution Rules Lack Authority

7 Pages Posted: 27 Nov 2013

See all articles by Cherie Hennig

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

Date Written: April 6, 2009

Abstract

The reportable entity partner rules of the instructions to the partnership Schedule M-3 are designed to promote more transparency in taxpayer reporting and to prevent possible abuse through the use of off-balance-sheet financing to hide some activities. The instructions may rise to the level of rules and regulations under the section 7805(a) congressional grant of authority, and it may be argued that these instructions are administrative interpretations of the section 6031(a) general reporting rules for partnerships. However, the inclusion of entity-to-owner attribution rules in the reportable entity partner requirements that are contrary to existing code definitions is highly questionable. Those arbitrary definitions seem to overstep the traditional interpretive role of rules and regulations and delve into the legislative arena.

Keywords: partnership, attribution, Schedule M-3, reportable entity

JEL Classification: E62, H25

Suggested Citation

Hennig, Cherie and Everett, John and Raabe, William A., Reportable Entity Partner Attribution Rules Lack Authority (April 6, 2009). Tax Notes, 2009. Available at SSRN: https://ssrn.com/abstract=2359511

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law ( email )

601 S. College Road
Wilmington, NC 28403
United States

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

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