Opinion ID: 187509
Heading Depth: 1
Heading Rank: 5

Heading: Required to Be Taken into Account Under Subtitle A

Text: For the validity of a partnership to be a partnership item, it must be required to be taken into account . . . under any provision of subtitle A, which is the subtitle concerning income taxes. We have little difficulty concluding that application of the income tax provisions of Subtitle A to the tax liability of a taxpayer who receives income from a purported partnership entails a determination of the validity of that partnership. As the Eighth Circuit has stated, When filling out individual tax returns, the very process of calculating an outside basis, reporting a sales price, and claiming a capital loss following a partnership liquidation presupposes that the partnership was valid. RJT Investments X v. Comm'r, 491 F.3d 732, 736 (8th Cir.2007). Thus the first requirement of the test is met.