Reportable Entity Partner Attribution Rules Lack Authority
7 Pages Posted: 27 Nov 2013
Date Written: April 6, 2009
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: Suggested Citation