Partnership Tax Election Form

A Partnership Tax Election Form is a document that allows a partnership to choose how it will be taxed for federal income tax purposes. The most common election is the “pass-through” election, which means that the partnership’s income and losses are passed through to the individual partners and reported on their personal tax returns. Other elections may include the choice to be taxed as a corporation or the choice to use a specific accounting method. The election form must be filed with the IRS and signed by all of the partners. A Partnership Tax Election Form helps to ensure that the partnership is in compliance with tax laws and regulations, and can help to minimize the partners’ individual tax liabilities.