According to the Internal Revenue Service,
A) profitable partnerships pay taxes before distributing profits.
B) partners report their share of profits as personal income.
C) partners pay no taxes.
D) partners have the most advantageous tax structure.
E) partnerships do not have to report their income on a tax return.

Question

Quizplus · Accepted Answer

Partners must report their share of profits on their individual tax returns and pay taxes at the income tax rate for individuals.