How Does a Partnership Make a Tax Election for the Current

question 42

Multiple Choice

How does a partnership make a tax election for the current year?

• A)Partnerships make certain elections automatically by simply filing their returns.
• B)Partnerships make certain tax elections by filing a separate form with the IRS.
• C)Partnerships do not need to file anything to make a tax election.
• D)Partnerships do not make tax elections. Partners must make tax elections separately.
• E)Both partnerships make certain elections automatically by simply filing their returns and partnerships make certain tax elections by filing a separate form with the IRS.

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Definitions:

Decrease Rate

A term that may refer to the rate at which a value is reducing over a period of time.

Compounded Quarterly

The calculation of interest on both the original principal and previously earned interest every three months.

Lump Sum Payment

A single payment made at one time, in contrast to smaller, periodic payments.

Lump Sum Payment

A one-time payment made specifically rather than multiple smaller payments over time.